Credit holidays under new rules

Credit holidays on new terms

A draft amendment to the act on support for borrowers has been submitted to the Sejm, the aim of which is to extend the possibility of taking advantage of the so-called credit holidays.

On Tuesday, the Marshal’s Office received a draft amendment to the act on support for borrowers and the act on crowdfunding for economic undertakings and assistance to borrowers. The changes are to come into force on May 1 and will allow for the extension of the possibility of using credit holidays until the end of 2024.

The draft amendment assumes that only people who have a mortgage in złoty will be able to take advantage of the credit holidays. According to the proposal, credit installments will be suspended in May and June and for two months in the second half of 2024. Compared to the previously applicable regulations, now credit holidays will be available to people whose installment exceeds 30% of household income, calculated as an average for the previous three months, or if the borrower has at least three children to support (on the day of submitting the application). The limit of the value of the loan, the repayment of which can be suspended, has been set at PLN 1.2 million.

The Borrowers Support Fund will also change

In addition, the project proposes changes to the rules of operation of the Borrower Support Fund, which consist in increasing the maximum aid from PLN 2,000 to PLN 3,000 and extending the aid period from 36 to 40 months. The total value of the loan for debt repayment is to amount to PLN 120,000.

After the changes, borrowers in a difficult financial situation (including foreign currency borrowers) whose installment exceeds 40 percent of household income (today it is 50 percent) will be able to apply for assistance from the FWK. In addition, it will be possible to use the FWK support if the monthly household income, reduced by the monthly costs of servicing the housing loan, does not exceed 2.5 times the criteria specified in the Social Assistance Act.