Lloyd’s joke payments holiday COVID 19

glowpyj

So being a self employed small business owner there is currently zero financial help available to me. I asked my bank Lloyds for a payment holiday on my personal loan to help. They offered me a 3 month payment holiday BUT for each month they will charge the equivalent of my monthly payment (over £600) in interest added to the loan!! Please tell me how is that helping me? I’m at a loss. All I can do to help myself right now is dig myself into further debt! 

[Deleted User]

I think you've misunderstood.

They're offering you a payment holiday, but just advising that interest will continue to accrue.  You just need to establish what the repayment amounts are going forward - whether the monthly payment increases by a small amount, or the term is extended.

glowpyj

Not misunderstood. I’ve spoken to them twice. For each months holiday they add two months interest to the loan 

[Deleted User]

And how are you calculating 'two months interest' as that varies by month?  

The calculation would be far more complex than that, as it depends on your new repayment terms.

Shakin_Steve

I do hope your small business isn't in accountancy.

jonesMUFCforever

glowpyj said:

Not misunderstood. I’ve spoken to them twice. For each months holiday they add two months interest to the loan 

You are wrong - plain and simple.
If you don't make a repayment your normal interest will still be debited to the loan account monthly so the amount owing will increase until such time as you restart your repayments. This may mean 3/4 months added to the loan term unless you make good the holiday repayments before the end of the loan.
Normally 58 days interest is added as a charge if you want to repay your loan early - not in today' s circumstances.