^{Starting Out} Postponing payment options

What is an installment deferral option or EMI deferral?

A payment is considered deferred if it has not been made by its contractual due date with the formal agreement of the bank to delay the single or multiple instalments. Some banks offer a payment deferral option for personal loans only.

Before availing of the loan deferment service, make sure you read and understand the terms and conditions of your bank.

How to postpone a payment?

If you are experiencing temporary financial hardship or are in urgent need for short-term disposable cash, then a deferment may be the right choice to keep your loan from entering default.

You may check your eligibility for payment holidays offered by some banks.

• Explore repayment options. If you can manage smaller payments, consider applying for an alternative repayment plan.
• Deferment is temporary under a limited period. These are authorised temporary suspensions of repayment granted under certain circumstances.
• Interest keeps accruing. Even if a deferment suspends your monthly payments, you are responsible for repaying all interest and charges which continue to accrue during these periods.
• You may become ineligible for certain incentives. If you use a deferment, your eligibility may be delayed, or you may be disqualified for any incentive programmes that your lenders may offer, such as co-signer release, interest rate reductions, and rebates.
• Increased loan tenor. The outcome of a deferral leads to an increase in loan tenor, which one EMI may not necessarily extend. The loan tenor increase due to a deferment will depend on the existing residual loan tenor.

For approved deferment assistance, the bank should not report it to the Credit Bureau as missed or skipped payment which will negatively impact the credit report. Hence you must check your credit report and verify no such record has been made.