One of the basic rules of the financial world is: nothing is free. However, interest-free products exist in the ordinary people’s loan market. Loans without fees, even without hidden ones. Loans that already have a magical “free” in their name. Let’s take a closer look at what lies behind this alluring word.
Is it really free?
For the sake of objectivity, we must emphasize that it does. Usually the first loans at non-banknotes are free. Of course, it has its limitations, but there are real loans with interest and fees: zero. Or more precisely: from zero. These are short-term, fast, low loans, usually with a maximum maturity of one month.
First of all, it’s a smart marketing move. A relatively successful attempt to compete with bank credit cards. Well, and from the point of view of acquiring customers, it is also extremely interesting. Although there are no accurate statistics, the flush is likely to be quite large.
But what can non-banknotes acquire? Satisfied customers who come back after a while and want to borrow more. Of course not for free. And a considerable profit is the penalty for delaying the repayment term or refund. They really are no longer free and are quite high.
Beware of the debt spiral and trapped in the debt trap. All responsible lending principles also apply to free short-term loans. If you do not have a refund, prefer not to borrow. Because you will quickly find out that even a free loan doesn’t have to be free at all
Who are the loans for free?
Priority is given to those who are in short-term financial distress. And they need “quick money”, of course, cheap. For those who want to borrow for the first time at a non-banknote. And even for those who do not need millions, but only a few thousand, who can pay back in a month. But even for those who have a problem getting another type of loan. Because some free loans are provided without complicated proof of income. Let’s think: if the usual usury interest on the black market is 20% or more, a quick free loan pays off.
Benefits of short-term free loans
- you will only return what you have borrowed
- no interest, fees, or hidden fees
- fast processing of online applications
- money almost immediately after approval
- without liability
- with some providers, even without proof of income.
Disadvantages of short-term loans without fees
- low loan in the range of 5-15 thousand USD
- short maturity
- one provider is “free” only once
- the need to have an account with the bank
- relatively narrow offer
- threat of penalties and penalties in case of delay.
So really free?
Yes, but… everything for free always has some but. Beware of the risks. And do not count on trying all providers for the first time. Loans without interest and fees are also subject to legal conditions. Including screening of the applicant in the debtors’ registers. And all financial market operators do business with the permission of the state. Most of them are supervised or recorded by the Carepenny Bank. Including non-banknotes.