without interest
Banks offer an interest-free loan to attract new customers, but this service has its own characteristics, which you need to understand. For example, if you make a purchase in a store, and you are offered to get a loan without interest, the following scheme may apply: the bank issues a loan at interest, but the store makes a discount. Therefore, for the client, the loan seems to be interest-free, he simply pays the full cost of the goods without a discount.
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- Bank profit
- Banks providing interest-free loans
- Ways to get an interest-free loan
- Advantages and disadvantages
- How to get an interest-free loan?
- low-interest loan
Another option is to make a card with a pre-approved limit at the bank; different credit organizations offer different amounts. The peculiarity is that a loan without interest is relevant only for a certain period of time, for example, two months, if by this time the loan is not closed, you will have to pay interest for using funds from the card. In addition, you cannot cash out without paying a high commission for it.
Bank profit
The bank does not make a profit by lending money to the client, since the interest rate is zero, but the credit institution's earnings consist in the sale of related services, without the purchase of which such a loan cannot be taken out. These services include insurance, commission for cash withdrawals, commission for payments with credit money, account maintenance fees, card issuance, and other services that may differ significantly in different banks.
Banks providing interest-free loans
Most large banks offer such services, most often such a loan consists in the fact that the client draws up a card with a certain limit of funds. There are about 10 cards that operate under different conditions.
Ways to get an interest-free loan
There are several ways of such lending:
Overdrafts are offered by some banks. The interest rate per year is 0%, the borrower must pay the monthly set amount, pay a monthly fee for the use of the services and fix from two direct debits. For the first 4 months, the overdraft can be used free of charge, after that, the payment for its use will be charged, the bank sets the amount on its own. The loan amount depends on the client's rating and is determined on a case-by-case basis.
This is a short-term loan, but its term is also determined by the bank's loan program chosen by the client. Much attention should be paid to the full repayment of the debt during the free period of use.
Credit card for purchases at 0% rate. This is the second, no less popular way of using credit funds without paying interest in a short period of time. Such a credit card has a limit determined by the lender, for example, 100,000 rubles, more than which cannot be withdrawn from it. In this case, the user is obliged to return the funds during the grace period, if this does not happen, the bank begins to calculate the percentage. Often these cards provide a monthly payment for their use.
If the deposit is late, the borrower may receive a fine. You cannot withdraw cash from such a card for free, there is a rather high commission, for transferring money to a third-party card, you will also have to pay a commission from 1 to 3% of the amount you want to transfer. At the end of the grace period, the borrower will pay 15 to 20% per annum.
Purchase of goods by installments in the store. This is one of the most popular methods used by many buyers. For many new items, the price of which is high, the buyer can get a profitable loan. Having issued it, the client will be given a payment schedule, you need to make a certain amount once a month.
If possible, you can pay off the debt in advance. You can distinguish a loan from an installment plan by reading the contract. If this is an installment plan, there will be no interest, and the contract is concluded between the client and the store. If there is a bank in the agreement and the loan agreement itself, then this is not an installment plan, but a loan, however, a grace period is often provided, for example, 6 months, in which you do not need to pay interest.
If the client fits into it, he receives the desired product without overpayments, and in fact, the loan acts as an installment plan, if the buyer does not have time to repay the loan, he begins to pay interest on the remaining amount and a monthly installment.
Advantages and disadvantages
This type of lending has the following positive aspects:
- It is not required to collect a large number of documents and wait for the bank's approval.
- Ability to not pay interest during the grace period.
- The money can be used at a convenient time for you.
- However, there are a number of disadvantages:
If you do not meet the grace period, you will have to pay a large percentage.
- The grace period is limited.
- The loan amount is small.
- High commission for transferring or cashing out money.
- How to get an interest-free loan?
For registration you will need to have the following:
- Passport.
- 2 personal income tax or salary card of the bank where you want to take out a loan.
- A copy of the workbook.
- SNAILS.
- Real estate or car documents