IFA Farm Business Chair Rose Mary McDonagh has reminded farmers that applications for the COVID-19 Payment Break close on Wed, Sept 30th.
“Payment breaks provide crucial breathing space for those negatively impacted by Covid-19. If your cashflow has dropped temporarily as a result of COVID-19, or you expect it will, and you believe you will be unable to make your loan repayments, then you should seek a payment break.”
A payment break means that you won’t pay any interest or capital on your loan during the period of the break. In early March, lenders announced a payment break of up to three months for customers with personal loans and mortgages.
At the end of April, this was extended by another three months up until September 30th. Importantly, there will be no impact on the credit rating of borrowers who avail of a payment break as a result of being financially affected by the pandemic.
The Farm Business Chair concluded by saying it is essential that farmers contact their lender directly as early as possible to allow their lender sufficient time to process their application before the end of the month.