Free loans: questions and answers



 

Free loans are an increasingly frequent element of the offer of today’s loan institutions. Practice shows that when looking for a non-bank loan offer for a relatively small amount, customers often first pay attention to whether a given company provides the option of taking the first loan at the APRC of 0 percent.

Free loans are undoubtedly an attractive proposition for a large proportion of the loan sector clients. At the same time, however, we often see that customers do not have sufficient knowledge about this type of solution. Let’s try to answer some of the most important questions about this topic.

What are free loans?

What are free loans?

Loans with an APRC of 0% are in principle a promotion addressed by loan companies to new clients. When using this type of loan, we do not incur any costs normally included in the APRC, ie commissions or capital interest. However, any additional costs will not be included in the promotion offer. This means that, for example, if you want to use the option to extend the duration of a free loan, you will have to pay a one-time commission in the amount provided for the contract.

When does the free loans stop being free?

When does the free loans stop being free?

As mentioned, loans at the APRC of 0% are a promotional offer of loan institutions. The promotion may cease to apply when we break one of the points in its regulations, so for example we will not repay the loan on time. In this situation, the loan institution will have the full right to request us to repay the liability in accordance with the standard cost table.

Are free loans available only to new customers?

Are free loans available only to new customers?

As a rule, the answer is yes. Some loan companies, however, offer loyalty programs with a specific structure, eg a customer who pays their liabilities on time every 3 or every 4 loan will receive at the APRC of 0%. However, this applies to the offers of only a few selected loan companies.

Are free loans safe?

Are free loans safe?

Yes, but only if the lender is an entity with verified status. Before borrowing, you should always check whether the potential lender is listed in the Register of Loan Institutions . Of course, you should also always read the documents we sign (this applies not only to loan companies, but also to banks).

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