Interest-free loans and credits
Do you have an unforeseen event, and do you need a certain amount of money to solve it immediately?
In this case, interest-free loans may be the best solution.
With a loan of these characteristics, you can get a small amount of money totally free : no interest, no commissions and no fees.
Sounds good, doesn’t it?
In this article, you can find the following information:
- Quick loans without interest, what are they?
- Requirements to apply for fast loans without interest
- Advantages of fast loans without interest
- Loans without interest or commissions, is it possible?
- Other alternatives such as interest-free micro credits.
- … and much more!
What are personal loans without interest?
An interest-free online loan is a contract whereby a lender provides an amount of money to another person (borrower), with the obligation to return the capital but, in this case, without paying interest or commissions if the money is returned to weather.
How do fast loans without interest work?
Fast interest-free loans are an increasingly demanded financial product.
Fortunately, online lenders have listened to the demands of their consumers and offer a variety of peronal loans without online interests.
Although the offer in the current credit market is varied, the main characteristics that define an interest-free loan are:
- The offer of an amount of money that does not usually exceed $ 500.
- A short return period, usually 30 days.
- No commissions, no interest and no extra charges: they are 100% free.
In this sense, fast interest-free loans are a good option for those who, despite having a good economy, need to face a payment immediately.
How can I find interest-free loans or commissions with Bankate?
Precisely, due to the large offer of interest-free loans or commissions that exist in the current market, we must take the time to compare the different proposals of online entities, their terms and conditions, to make sure we find the loan that suits us.
We know that this is a tedious, difficult and time-consuming task. For that reason, we have devised the Bankate service.
Bankate is a comparator that helps you find the loan without interest or commissions that best suits your needs.
Our service compares the best personal loans in the market, and presents you with an updated list of loans, as well as information about the different lenders, their offers and the loan conditions, so you can choose the loan that really suits you.
In Bankate we detail both the advantages and disadvantages of each loan without interest, and we inform you of the rates and interest, the APR, without small print, so that you can request your loan with the best possible conditions.
Our service is fast, easy and non-binding. And the best, all for free. No one will charge you anything.
The objective of Bankate is to make your life easier in specific situations of need for cash. You can learn more about Bankate on the page about our service.
Frequently asked questions about interest-free loans
Where to apply for loans without interest or commissions?
You can apply for interest-free loans or commissions on the Bankate page itself. You have a list with the best offers in the market as well as all types of loans and credits online.
What advantages offer fast loans online without interest?
This type has many types of advantages but the most important to highlight is precisely the absence of interest or commissions on your loan.
What disadvantages do interest-free loans offer?
The biggest disadvantage of interest-free loans is that in case of credit deferral, interest is very high.
What are the usual uses of interest-free microcredit?
The usual uses of this type of micro credits varies with notoriety from client to client. One of the most common reasons is the appearance of an unforeseen payment to face.
What happens if the interest-free loan is not repaid on time?
In the case of not returning your credit in the specified time, you can request a deferment of the payment. On the other hand, interest will be very high.
How to apply for loans or mini credits without interest
Time needed: 15 minutes.
We have all experienced situations in which an unexpected payment appeared that you could not face. Therefore, if you are unfortunately at that time, Bankate helps you apply for a loan or mini credit without interest:
- Compare our loan list
At the top you can compare the loans offered and select the one that suits you.
- Complete the application
Once you have decided on the right loan, fill in the application with the corresponding data.
- Wait for approval
The selected bank will receive your data and give you a positive or negative response on the loan or mini credit application.
- Receiving the money
If your application has been approved, you will receive the money in your bank account in an average time of 48 hours.
Is there a trick behind fast loans without interest?
There is no trick : interest-free loans are completely free, since you will not have to pay interest or commissions if you return them on time.
However, you should also keep in mind that not all loans offered as free loans really are.
Some of them charge opening or study fees, so you will have to pay additional fees when applying for your loan.
That is why you should always read the fine print (read article for more information), because promotions and offers are usually linked to mandatory conditions.
Our updated loan list will save you that task: we will always inform you of the commissions and additional expenses, so you will not fall into the trap of an interest-free loan that will not be so much later.
The fine print of interest-free loans
Some of the 0% interest loans offered by lenders include additional costs hidden in “the fine print” of the contract terms.
In these cases, they use other additional expenses, to present a product at 0% interest that then presents commissions, for example:
You ask for $ 3,000 in a bank that offers a loan at 5% interest and without commissions and in the end you will pay $ 81.86 of interest.
Another bank offers you a 0% interest loan, but with a 3% opening commission. In the end, you will pay about $ 90 of initial commission.
The second option, even offering a 0% loan, is more expensive.
In addition, it is important to know the interest rates and what they mean:
|TIN||Type of interest|
|APR||Annual Rate Equivalent|
The price war in the credit market has caused several lenders to start offering loans at 0% interest to attract new potential clients to overcome the competition.
These interest-free microcredits are completely free and are generally offered to customers who are new when applying for a loan with that entity for the first time. That is, online entities offer the first free loan.
This type of loan does not usually exceed $ 300 and must be paid within a short period of 30 days.
In addition, being a totally online process, you will know almost instantly if your loan has been granted.
The main advantage of these fast mini loans is that the applicant can dispose of his money on the same day as the loan application.
We must bear in mind that, if the applicant asks to postpone the loan repayment date or, on the contrary, does not return his loan within the agreed term, additional fees and charges are charged, which are generally quite high fees. With this, the loan goes from being free to be very expensive.
For this reason, before applying for a loan online, make sure you can make the monthly payment.
Characteristics of interest-free mini-credits
The mini-credits are a financing option widely used by the Spanish in recent years.
This financial product has been designed with the objective of helping its clients to cover unforeseen expenses or to solve financial problems that involve an amount less than $ 500.
With a mini-loan, the financial institution makes a loan of a small amount, starting at $ 50. In general, the return period is very short, from one week to a couple of months, the most frequent being a maximum period of 30 days.
In this way, you can solve your problem as soon as possible and totally free. Keep in mind that online financial institutions only offer the first interest-free mini-loan.
The objective of offering interest-free microcredits is to attract potential clients to the financial institution. That is why you will not be able to request a second microcredit without interest from the same entity.
However, online entities trust their previous customers, so they tend to offer a larger amount of money to users who have already applied for a loan before.
You must be responsible when requesting this product, since if you are not able to return your credit on time, you will be charged for deferral fees that can be very expensive.
How is the money of a microcredit returned without interest?
The term and conditions of return depend on the financial institution with which you request your microcredit.
However, as a general rule, since it is not a very high amount, the microcredit is usually returned in a single installment the month following the request (30 days).
Some entities allow, instead, to divide the total payment, being divided into two installments of equal amount.
As for the return of money, most online financial institutions handle two methods: the first, payment by card, which is more used for amounts less than $ 150.
Second, the reimbursement of your microcredit can be made by bank transfer to the account number provided by the lender.
Many entities domicile the loan payment, which means that the money to be paid will be withdrawn from your bank account automatically. This represents the easiest and fastest method as it allows you to ensure that your credit will be repaid on time and you will not have to pay deferral fees.
In case you are not able to repay your microcredit on the return date, you will have the possibility to extend it. However, keep in mind that you will be breaching a contract, so the entities will request payment of additional extension charges.
Before requesting your microcredit, it is very important that you inform yourself of the conditions in case of delay or default. The non-payment of your microcredit will make your debt increase significantly, and you will have to pay the entire cost of it.
In the event that you cannot finally face your payment, your name may end up in a delinquent list, which has associated quite serious consequences.
Finally, your credit history will be affected, so if at any time you want to apply for another loan while in ASNEF, it will make your grant difficult.
Interest-free credits for youth and students
These interest-free loans are specially designed for young people who wish to finance their projects or pay for their university studies; So they are also called university loans.
That is why to apply for these types of loans it will not be necessary to present a payroll or a guarantee, and the amounts are usually slightly higher than those of a microcredit.
As for the payment, they can be fast loans, that is, to be paid in about 30 days, or installment payments in a short period of time, never exceeding half a year (6 months).
The financial institutions that grant them usually request information from the interested party about the main purpose of the loan, and usually carry out a solvency study so some entities may request an additional charge.
Personal loans without interest
Interest-free personal loans are generally used as consumer loans. These loans are repaid in installments, with 0% interest, until the total payment of the product is covered.
They are usually offered, in general, to pay for large appliances, computers or mobile phones; although there are several possibilities.
The entities that grant them usually request proof of solvency to ensure that you can pay the same.
A clear example of consumer loans can be credit cards that have no interest: with them you can face the payment of a product and return the amount the following month without problems.
Loans between private individuals without interest
Although it is a somewhat more difficult offer to find, interest-free loans between individuals are a very popular solution among unemployed people and people listed on a delinquent record, who cannot find financing by the traditional way.
In this case, the loan is made by an individual, so it does not depend on traditional banking entities.
To ensure the payment thereof, the loan contract is made before a notary, and the money can be delivered by hand and instantly.
Loans between family members without interest
Finally, family loans consist of a benefit from one family member to another.
Contrary to what is believed, a family member cannot lend you money without a contract, even though they do it for free.
This is because, legally, it is considered a disguised donation and can cause serious problems with the Treasury if it is not processed in the right way.
The first step to legalize a loan between family members would be to write and sign a contract, in which the two parts of the procedure are indicated and the gratuity of the loan is specified, that is, the contract must state that it is a loan without any type of interest.
We must remember that the main characteristic of a loan is the repayment of the amount to the borrower, so that in the case of something legal, and despite being a relative, the applicant must reimburse the total amount of money.
In the same way, in the contract it will be necessary to detail if there are repayment terms or on the contrary it is a single installment, the amount that must be returned in each installment, if there is a possibility of deferment, etc.
Advantages of interest-free loans online
The main advantage of interest-free loans is obviously the absence of interest and commissions, so they are totally free for the consumer.
In addition to this great advantage, interest-free loans online present many more. Next we will detail some of them:
On the vast majority of occasions, you will only need your online loan to face the payment of certain contingencies that are not too expensive, but enough for your payroll or your savings to be affected during that month.
With interest-free loans requested online, you can request small amounts, that is, you can request only the amount you need, from $ 50 to $ 300, for free.
- You can request precisely the amount you need.
- You choose when and how you want to return the money.
- Request your loan 24 hours a day, 7 days a week.
The application process for interest-free loans is done 100% online, easily and quickly and from the comfort of your home. In this way, you can forget about the trips to the bank, the infinite queues to be attended or the long waits by phone.
- Apply for your loan online.
- Request your loan through an SMS.
- Wherever you are, whenever you want.
Online lenders do not ask you to provide unnecessary documents to justify that you are able to repay your loan, since they evaluate your profile efficiently and automatically (read article about digitalization).
That is why, with the application of a loan without interest online, you can forget about the paperwork involved in requesting a loan from a traditional banking entity.
- No documentation is required to apply for your loan.
- Entities only request basic information.
- A guarantee or a payroll is not required for your loan to be granted.
One of the greatest achievements of online loans is to be able to offer access to financing to anyone.
While traditional banks require the fulfillment of endless requirements and paperwork, such as an acceptable payroll, last year’s income statement, submit a guarantee, etc., to apply for a loan without interest online you do not need to comply with any of these requirements.
Minimum requirements for online loans:
- Be 18 years old at the time of the request.
- Reside in Spain and present a valid ID.
- Be a bank account holder.
Another great advantage of interest-free loans online is the speed in which they are granted.
Hence, online loans are currently one of the most famous alternatives for having urgent money. The most common is that the acceptance of your online loan is made, at most, in a few hours.
- Instant response to your request.
- Money at your disposal in a maximum of 24 hours.
- Short return term.
Online lenders are financial entities that are registered and operate in Spain under the financial security criteria set by the Bank of Spain for traditional banks.
In fact, some of these online entities are subsidiaries of large Spanish or European banks, so online entities are completely secure.
The loan application process is carried out automatically by a computer system that ensures your total privacy.
Disadvantages of online loans
Although interest-free loans represent a good possibility of easy, fast and free financing, not everything can be advantages.
These loans also have some drawbacks, and since one of the main pillars of Bankate is transparency, we would like to present them below:
Higher Deferral Interests
As we have commented previously, in case of not being able to face your payment, you will be charged with a deferred payment interest that is usually very high, due to the risk of default assumed by the financial institution.
Your best option is to always compare the different products offered by each of the online loan companies and under what conditions (don’t forget the fine print).
Additional hidden fees
Some loans that are presented as free are not as such. We must bear in mind that some entities can take advantage and charge additional commissions of opening, service or study.
Other entities, even, include in their conditions the hiring of additional services, such as insurance, which you must pay.
That is why we strongly recommend that you read the fine print and do not accept the hiring of any financial product if you do not fully understand the conditions.
The main data that you should look at when you take out a loan are:
- The commissions
- Insurance (if there is an obligation to contract one for the type of loan)
- The return conditions
- Penalties (eg in case of delay or default)
After reading this page you know that:
- The great competition existing in the credit market has caused different lenders to start offering loans at 0% interest.
- Interest-free loans are offered only to new clients of the entities.
- Interest-free loans do not usually exceed $ 300 and generally have to be repaid within 30 days.
- If you are unable to pay your loan, you will be charged for deferred interest that can be very expensive.
- It is important to read the conditions carefully to know in advance what commissions you have associated, p. ex. Delay and default.