Personal loan support

We're here to help our personal loan customers financially affected by COVID-19. Depending on your circumstance, we have the following options available.

1. Reduce your existing repayments on your loan

If you’re currently paying above the minimum repayment amount on your home loan, you can reduce your repayments back to the minimum repayment amount at any time.

See how

2. Reduce your repayments to cover interest

If you’re granted this type of assistance, your repayments will reduce to cover the interest portion of your regular repayment only and not the principal, for the period of assistance.

Please note: Your minimum repayment amount may increase at the end of the assistance period and you may pay more in interest over the term of the loan as your account balance will not reduce as it usually would. 

Let’s look at an example

If you had a loan balance of $10,000 at an interest rate of 13.90% p.a., and you had 3 years remaining on your loan, your monthly repayments would be $342. If you choose to enter this assistance for 3 months, your monthly repayment would reduce to around $116 a month for the assistance period. As a result of this lower repayment, during the duration of the assistance your loan balance will not reduce at the rate it normally would have. To repay your loan within the same term, your monthly repayments would increase to $367 at the end of the assistance period (about an extra $25 a month to allow for the reduced number of repayments), and you would end up paying an extra $152 in interest over the remaining term of your loan.*

To apply for a reduction in your personal loan repayments, please call us on 0800 606 606 and press 3 to speak to one of our team. We’ll ask you some questions on how COVID-19 has impacted you financially and assess whether this type of assistance suits your situation.

You can cancel your COVID-19 assistance at any time before the end of the assistance period by contacting us on 0800 606 606 and pressing 3.

 *Applications are subject to normal lending criteria.

3. Personal Loan repayment deferral

You could be eligible to apply for a personal loan repayment deferral. If approved, you will not be required to make any regular repayments on your loan during the assistance period.

Please note: Interest will continue to accrue on your personal loan during this period. This accrued interest will be added to your loan, and may increase your loan balance. Your minimum repayment amount may increase at the end of the deferral period and you may also pay more in interest over the term of the loan due to this.

Let’s look at an example

If you had a loan balance of $10,000 at an interest rate of 13.90% p.a., and you had 3 years remaining on your loan, your monthly repayments would be $342. If you opted for this 3 month deferral assistance, your monthly repayments would increase to $425 a month at the end of the assistance period to repay your loan within the same term, (an extra $38 a month to cover the additional interest accrued during the assistance period, and to allow for the reduced number of repayments). The extra cost of the loan deferral would be $229.*

To apply for a deferral for your personal loan repayments, please call us on 0800 606 606 and press 3 to speak to one of our team. We’ll ask you some questions on how COVID-19 has impacted you financially and assess whether this type of assistance suits your situation.

You can cancel your COVID-19 assistance at any time before the end of the assistance period by contacting us on 0800 606 606 and pressing 3.

4. Consider debt consolidation

If you have debts elsewhere, debt consolidation* might be a consideration to assist you with managing cashflow. If you're interested, please call us on 0800 177 277.

*Applications are subject to normal lending criteria.

Do you have Westpac Loan Cover?

If yes, and you’re eligible for COVID-19 loan repayment assistance on the associated personal loan, your Westpac Loan Cover can remain in place during your COVID-19 loan repayment assistance period, as per your latest policy schedule, until the policy expiry date. Remember, this cover may not match your actual personal loan term or balance if these have changed since you took out your policy. If you think you might be able to claim on one of the benefits under your policy, or have any questions on this or if you need another copy of your policy schedule, then get in touch at insurancehelp@westpac.co.nz, call us on 
0800 738 641.

Note, your policy would normally terminate if the limit or term of your personal loan increase. To help ease the process, as an exception you’re able to keep your policy in place if you need to restructure your loan at the end of your COVID-19 loan repayment assistance period (unless your policy has expired or terminated prior to this). Just be aware that your policy won’t cover any increase in loan limit or term resulting from any personal loan variation. If your personal loan account is restructured again in the future (after any initial end-of-assistance restructure), your Westpac Loan Cover policy will terminate as per the usual process. Since we no longer accept applications for Westpac Loan Cover, we won’t be able to offer additional cover under your policy, or provide a new policy.

Need help, but don’t qualify for COVID-19 assistance?

If you need financial support but have not been impacted by COVID-19, you can consider making an application for Hardship assistance instead.

Find out more

Frequently asked questions

Any Westpac home loan or personal loan customer who has been impacted financially by COVID-19 can apply for a payment deferral or reduction, although approval of the request will depend on an individual’s financial situation. Eligibility may vary for customers who are already under specialist debt management. Westpac Choices Everyday customers are not eligible.

Having your payments deferred or reduced will mean that you will pay more interest over the term of your loan. For that reason, we do not recommend a deferral if you are able to continue making payments.

Whilst you are receiving a repayment deferral or reduction we will take steps to ensure that your credit score is not negatively impacted as a result of this financial assistance, provided your account was not in arrears before the pandemic. Your balance and any overdue amounts will also not be disclosed.

It begins when your next repayment is due after your application has been approved.

You may be able to reduce your repayments if you’re currently paying an amount above the minimum repayment amount. We also have a range of other financial support options available, including temporary overdrafts.

Please call us on 0800 606 606 to talk to us about your options.

Yes, if you’re able to resume making repayments within the financial assistance period, please call us on 0800 606 606 (+64 9 375 9907 for overseas).

We will discuss with you the appropriate length of assistance based on your individual financial situation.

You don’t need to do anything. When your assistance expires your payments will resume automatically. We’ll send you an email or letter to let you know the dates your repayments will resume and your estimated repayment amounts.

If you’re unable to resume your loan payments at the end of your loan deferral or repayment reduction, one of the options available to you will be to apply for an extension. Please call us 2-3 weeks before your assistance ends on 0800 606 606 to apply. One of our team will speak to you about how COVID-19 has impacted you financially and assess whether this type of assistance suits your situation.

You’re able to apply to have your assistance reinstated. Call us on 0800 606 606 to speak to one of our team, who will ask you some questions on how COVID-19 has impacted you financially and assess whether this type of assistance suits your situation.

To apply for repayment assistance, please call us on 0800 606 606. One of our team will ask you some questions on how COVID-19 has impacted you financially and assess whether this type of assistance suits your situation.

Unless you request otherwise, the loan term would remain the same but your regular repayments would increase at the end of the deferral/reduction period. Alternatively, we could structure the loan so your payments remain the same as they did before the deferral/reduction period, but this would extend the loan term.

We suggest the decision about changes to the loan repayments at the end of the deferral period is best left until you have certainty about your position at that time – there’s no need to decide that now.

If during the assistance period you find you can increase your repayments, please let us know and we can make those arrangements.

You can call 0800 606 606 to talk to us about your individual loan and the effect of deferring or reducing repayments. We will also send a letter or email to every customer who is granted a repayment deferral or reduction confirming the changes to their loan.

Westpac Life home loan and personal loan repayment insurance is an optional insurance that may provide cover for your loan repayments in the event of death, inability to work due to illness or injury, or redundancy. It is different to house insurance, which may cover repairs or a rebuild if your house is accidentally damaged, and which is generally required when you have a mortgage.

If you have home loan and/or personal loan repayment insurance you may have access to benefits which could assist you at this time - please refer to your policy document for the terms, conditions, exclusions and limits that apply to your policy, and consider contacting your insurance provider to lodge an insurance claim.

If your policy is underwritten by Westpac Life-NZ-Limited you can call us on 0800 738 641 to lodge a claim (if overseas call +64 3 372 4855). Any claim payment is subject to your claim being accepted.

If you have Westpac Life home loan repayment insurance attached to your home loan (e.g. Flexicover), any insurance premiums will continue to be deducted and (if paid from your loan account) interest will continue to be charged on the premium amount.

After you have been approved for a repayment deferral or reduction, your account/s may show as being overdue or over limit during this period in your statements and in Westpac One. However, your agreed repayments during this period will be set out in your acceptance letter.