Loans for zero: what are they and how do they work?

Free loans, or so-called zero loans, are now an increasingly popular and increasingly common element of the offer of domestic loan institutions. Customers who have not previously used the offer of loan companies very often approach such solutions with a large dose of reserve and even distrust.

The very idea of ​​”free loans” seems suspicious. In reality, however, there is no catch. The presence of this type of solution is dictated primarily by the increasingly intense competition for the customer, which are engaged in loan institutions. What’s more, the non-bank loans sector has really good profits every year and is growing at a rate of about 20% per year, which means that entities from this industry can simply afford to tempt customers with various types of promotional offers.

Loans for zero: what are they and how do they work?

Loans for zero: what are they and how do they work?

First of all, it should be clearly stated that loans for zero are never part of the basic offer of loan companies. It is always a promotional offer addressed to new customers. This fact has consequences that should never be underestimated.

When deciding to take out a loan for free, we use the promotional offer, which means that we accept the terms and conditions of the promotion. One of the key points of such regulations is always the need to repay the zero-rate loan within the period provided for in the contract.

If we do not meet this requirement, the promotion will automatically cease to apply (we have broken the terms). In such a situation, the loan institution may require us to repay the loan not according to the promotional conditions, but in accordance with the standard cost table.

What else should you pay attention to?

What else should you pay attention to?

One should be aware that the offer of loan institutions is currently very diverse. This means that the customer has the option of choosing a loan for zero that will be best suited to his individual needs and preferences. However, what exactly parameters should you pay attention to?

If you want to get a loan bypassing the banking system, you should check whether the company provides the option to pay the loan via the Loan and Credit check, i.e. at the post office. It is also worth checking whether the loan company gives you the option of extending your first free loan or refinancing it.

At the same time, you should be aware that the costs of extending / refinancing the loan are not included in the APRC, which means that you will have to pay the commission provided for in the contract if you use this option.

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