Zero percent loans have been on the financial market for some time. They are offered properly by non-bank institutions offering so-called payday loans. The question arises as to what these types of companies are guided by offering customers a loan that is paid back in the same amount. Well, this is only a marketing activity that causes the customer to be interested in the offer, will benefit once and then again, but for a specific fee. Most non-bank companies offer zero percent loans, which can only be used once, at the beginning of cooperation. Some institutions have a zero percent loan in their financial proposal, granted every few loans to a particular client.
Zero percent loans – conditions and application
These types of loans are granted on the same terms as those already bearing interest, so most loan companies have the following:
- 18 years and citizenship
- valid ID card and registered address
- own contact phone number, bank account
- documented income.
People who meet all of the above conditions can apply for a loan as follows:
- decision on repayment amount and time, usually up to 30 days
- completing the form with details of address, workplace, income and obligations.
Loans zero percent – conditions
An additional condition, apart from those mentioned above, which must be absolutely fulfilled in order for the loan to be zero percent, is to pay it back on time. Even a small delay causes that the lender, in accordance with the concluded contract, supplements the amount to be repaid with additional costs – interest and commission. The same is true if we do not pay the payday payday and, as proposed by the company, we extend the repayment time. Then the zero percent promotion is no longer valid.
Loans zero percent – the amount of the loan
As with every loan taken, also this zero percent should read all documents very carefully, paying particular attention to the conditions of receipt and repayment of the loan. There are a lot of such companies on the financial market and it is worth looking for one that offers the best conditions for our situation. There are non-bank companies that offer payday loans with repayment periods of up to 30 days or 45 days, and even up to 60 days. Particular attention should also be paid to the maximum possible amount of the first loan. Here the proposals are different, but most often they do not exceed USD 2000. A typical amount is 1000 dollar. However, they warn that they grant loans up to, for example, USD 5,000. This is due to the fact that they grant low loans of USD 0.
What to look for?
It is also worth paying attention to whether the loan is free. Sometimes a non-banking company actually grants a zero percent loan, but you have to pay back more than we borrowed. This is due to the fact that the reimbursement includes hidden costs of loan preparation, ie the so-called commission. So be vigilant and read all the terms of the contract carefully before accepting it.