More than 27 million customer accounts have also been offered three months of interest-free borrowing on the first £500 of their arranged overdrafts if needed.

Any overdraft interest waived by lenders during this period will not have to be repaid at a later date.

Stephen Jones, UK Finance CEO, said: “Many people across the country are facing financial pressures due to the coronavirus, and lenders are taking decisive action to help them through these tough times.

“Payment holidays on loans and credit cards and interest-free overdrafts can provide much-needed support to those with short-term cash flow pressures, whether it’s to cover next week’s grocery shop or next month’s utility bill.

“A payment holiday may not be the right choice for everyone, and lenders have a range of options to help customers through the Covid-19 crisis.

“We would encourage any customers concerned about their financial situation to check with their lender, starting by looking at their website which will have the latest information on the support available.”

UK Finance added that where payment holidays are taken, interest will normally continue to be charged so customers should consider their options carefully and only apply if they are facing temporary financial difficulties and need immediate help.

Those in more severe financial difficulty should speak to their lender about the most appropriate action to take.

Customers are also advised not to cancel their direct debits or standing orders on unsecured credit products before a payment holiday has been agreed, as this will be counted as a missed payment and could negatively impact credit files.