What is an interest-free loan – an overview of the main issues

Anyone thinking about taking out a loan wants to obtain credit funds on the most favorable terms. The main indicator of a profitable loan is a low interest rate. Banks have approximately the same interest rates. However, in microfinance organizations, you can get a loan at 0%. This allows you to get the value you need without overpaying for the service provided. At the same time, you can now issue a microcredit without leaving your home. In this article, we will understand what interest-free online card loans are, who can get them, and what you should pay attention to.

What is an interest-free loan?

An interest-free loan is one that is outstanding at the lowest possible interest rate.

Since it is prohibited to grant interest-free loans in Ukraine, the interest rate in this case is 0.01%. Many are suspicious of such loans, believing it to be a fraud. People don't believe that it is profitable for companies to make loans that they don't earn anything from. In fact, 0% loans are a marketing strategy that lenders use to attract new customers. In addition, interest-free credit is granted only to new customers, that is, those who have already applied to the company for the first time and have not previously applied for microcredit.

Among borrowers, interest-free loans are the most popular, because with them you can solve your financial problems without overpaying. But it should be borne in mind that these loans have restrictions as to the amount and duration. As a rule, the credit limit is UAH 4,000 and the maximum loan term is 10-15 days… However, it all depends on the specific credit company.

Places where you can get a 0% loan

Where can you get an interest-free loan? In Ukraine, this type of loan is practiced by microfinance organizations. Now, there are many online services that offer the issuance of a microcredit directly on the Internet. But not all microcredit companies issue these loans. To check, you need to find the credit terms of a particular organization and reread them. It should also be understood that if you contact the same company again, the standard interest rate will apply. But if you turn to another MFI (to which you have not yet taken out a loan), which offers interest-free loans, you will not have to pay extra. So, professional borrowers regularly get loans at 0%.

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There are many companies in Ukraine that provide this service. For example, the Ukrainian company “Your Groshi” offers a loan in the amount of up to 5000 hryvnia for up to 30 days… This is a generous offer, because in most MFOs, when applying for a loan at 0 percent, there are severe restrictions (loan term up to 15 days and value up to 4 thousand).

Important: When registering an interest-free microcredit, the borrower undertakes to fulfill all obligations assumed. He must pay the debt on time in any form offered. If you do not return borrowed funds on time, there is a threat not only of penalties and fines, but also of accruing standard interest for the entire period of use of the credit money.

How to get an interest-free loan?

Getting an interest-free loan is no different than applying for another loan. Today this can be done online on the internet. You just need a phone and an internet-connected device. To get this loan, follow these steps:

  1. Choose a company that offers an interest-free loan to new customers.
  2. Access the official website of the selected company.
  3. In the loan calculator located on the main page, select the desired amount and loan term. Keep an eye on the interest column, which shows the overpayment amount. For example, from 5000 hryvnia, issued for 30 days, you need to pay only 15 percent hryvnia. If the amount shown is higher, it means that you have exceeded the loan amount or term limit.
  4. After choosing the amount and term, press the “get money” button.
  5. Fill in the form, indicating information about yourself and your passport details. Please fill in all blanks and use only true information. Providing incorrect information is a reason to decline a loan.
  6. Receive money the way you choose.
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When applying for a loan online, companies offer different ways to receive money: through a card, an e-wallet, sometimes in cash.

The best and most popular way is to receive funds on a bank card. First, almost everyone has them. Second, the money is transferred to the card instantly. You don't have to go somewhere or wait a long time for them to go after them.

how to get an interest free loan

How can I pay off my interest-free loan in full?

We find out if it is possible to apply for an interest-free loan and how to do it. Now let's examine the issue of debt repayment. First, try to avoid delays. The consequences will be unpleasant: the accumulation of fines and a large overpayment, deterioration of the IC. For the convenience of customers, microfinance organizations offer several ways to pay off debt:

  • Through self-service terminals according to company details. The purpose of payment is indicated on the terminal, the loan agreement number is written, the organization details are entered, and the required amount is entered.
  • Using a bank card via Internet Banking. Each bank performs this procedure differently. But the principle is simple – go to mobile banking, select the payment purpose and confirm the payment.
  • Through the cashier of any bank. In this case, the loan agreement and company data are indicated. It should be borne in mind that with this payment method, the money is credited to the organization's account in 1-3 days. Therefore, it is best to deposit money this way at least 3 days before the loan is due.
  • Using a bank card through your personal account on the company's website. This is perhaps the easiest way to get rid of an interest-free loan. You need to access your personal account on the website where the loan was issued, select the item “pay the loan” and follow the instructions below.
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Who is entitled to a 0% microcredit?

Some borrowers do not know who is eligible for an interest-free loan, which makes it difficult for them to obtain a loan. In fact, anyone who has first applied to a microfinance organization in which this service operates can apply for this type of loan. This type of microcredit is not only available to borrowers who have already issued a loan in the selected MFO. Of course, in order to receive an interest-free loan, you also need to meet the requirements set by the credit company: age, employment relationship, CI, etc.

Which companies is better not to cooperate with?

From all this, it becomes clear how to get an interest-free loan and where you should apply for it. But you also need to understand which organizations to ignore. There are many fraudsters operating in the financial market who, under the guise of microfinance organizations, lure their passport details from gullible people and then use it in their schemes. There are also many online loan services that actually issue interest-free loans, but at the same time prescribe additional commissions and hidden payments in the contract, which is why the borrower ends up overpaying. Therefore, it is necessary to carefully read the loan agreement before signing it.

With all this in mind, you should not contact little-known companies about which there is no information or reviews on the net. It is better to give loans to services that officially work on the basis of a license, and they have a lot of positive reviews from real customers on the Internet.

We take care of all the issues related to interest free loans and also dispel some myths about interest free loans. Using the information provided, you can easily and without unnecessary risk apply for a 0 percent loan.

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