Free loans – the hooks you need to know about
The free loan is now available in all loan companies’ offers. What are such free loans and are they really free? It turns out that the most, but only in specific cases.
Free loans – specification
The profit of a loan company that grants payday loans are the costs that we must bear in exchange for borrowing money. No loan company gives loans for free because it is not a charity. Still, loan companies are promoting free loans to attract customers. The word “free” undoubtedly suggests that you do not have to pay anything to borrow money, and this is true, but there is one condition – it must be the first loan of a particular client in the chosen loan company.
Non-bank institutions are trying to draw the attention of new customers and show them the best side. They want to destroy the myth that loans are expensive and cause problems later. In proven companies, this is never the case, and as a proof of integrity, these companies offer free loans. Each new client of a loan company can get the first loan for free, ie he will repay as much as he has borrowed. Initially, such a system worked within the time frame of promotions, but now it is a standard that applies all the time. The promotion for free loans is, however, limited by the amounts you can apply for. For most lenders, only free loans up to USD 1,000 come into play. If the customer wants to borrow a higher amount the first time (if he can at any given company), then unfortunately he will have to bear the costs adequate to the current price list.
Is it worth taking a free loan?
In order to assess the profitability of a free loan, it is worth quoting a very simple but extremely illustrative example. Let’s assume that you plan to buy equipment for USD 1200. Most loan companies offer the first loan for free, but up to a maximum of USD 1,000. If you want to borrow USD 1,200, you may have to pay back USD 1,300. Wouldn’t it be better in this situation to refrain from buying a bit, collect the missing USD 200 on your own and borrow the USD 1000 above? In this case, you will give the company only USD 1000 and buy your dream equipment for USD 1200. If you want to borrow the whole amount, ie USD 1200, for the first time, the equipment will cost you USD 1,300. You lose USD 100 on it. It may not be much, but it is 1/12 of the value of the equipment purchased. By spending 100 dollars every month in such a careless way, you lose exactly as much as the equipment costs annually. Unfortunately, you have to pay for wastefulness.
This simple example has shown you that free loans are profitable because you can handle money without having to pay for such services. You invest the first thousand freely and without costs. You will find out what the standard of service in a particular company is and you will gain experience that will help you make decisions on possible future loans.
Application for a free loan
Applying for a free online loan is easy. All you have to do is go to the page and check the ranking of free loans and then choose the company that you think has the best offer. With one click you can go directly to the website of the selected company and complete the application. Free loans are provided without leaving your home. All you have to do is specify the loan amount and repayment date. The calculator will immediately perform a cost simulation for you, and if the loan is up to USD 1,000, you will pay USD 0 for it.
The next step is to complete the form with your details. To do this, provide your name, number, ID card number, e-mail address and address. Sometimes it is also necessary to specify the type of income obtained (work, own business, disability or unemployment) and an indication of monthly income and expenses. Finally, simply accept all legal consents and submit the form for consideration. Free loan applications are in most cases processed within 15 minutes. Only sometimes you have to wait for a decision up to 24 hours. After the application has been approved, the money is transferred to the customer’s bank account and the repayment period, usually 30 days, begins to run.