Loan without commission

Mar 1, 2019 Finance

Loan without commission

Looking for opportunities to obtain additional funds, we often direct the first steps to the Internet. You will find here a lot of different offers concerning attractive cash loans or so-called loans – momentary. It is obvious that in the first place we are interested in the cheapest offers, thanks to which after the repayment of the loan more money will remain in our wallet. For this reason, the main purpose of our search will be a loan without commission or a loan with zero interest rate. The competition on the market has made it possible for us to choose between offers. We can easily find cheap loans or free loans. However, not everyone knows what the difference between credit and loan is.
Loan and credit – Differences and similarities
Both of these words are often used interchangeably by bank customers. As it turns out, however, they are united only by the fact that they concern the transfer of money to one entity by another. In addition, they are different for almost everyone. The main difference lies in legal issues. The rules of granting credits are regulated by the restrictive banking law. The Banking Law Act of 1997 clearly states that only banks can grant loans. As far as loans are concerned, all legal issues related to them are regulated by the Civil Code. What is important, loans can be granted by anyone who has sufficient financial means. All this makes the loans more easily available for customers, but they are much more expensive. Banking law requires great caution in granting loans and clearly defines the conditions of obtaining them. Granting a loan is a matter of appropriate provisions in the contract (in case of low amounts the contract is not required).
Borrowing costs
Loans are much more expensive than traditional bank loans. Due to the fact that the conditions of their granting are not subject to the Banking Law Act, loan companies can freely determine their amount and apply less restrictive requirements for borrowers. As a result, when signing a contract with a lending company, we usually agree to high interest rates. APR of loans reaches even one hundred and more percent in relation to a maximum of thirty in the case of a cash loan. Such a high APR usually consists of various administrative fees and commissions for granting a loan. The interest rate itself is not high at all. However, the total costs are quite high and the bank loans are in a privileged position. If, of course, we have creditworthiness.
Loan free of charge
Of course, a short search is enough to easily find loan offers that do not include commissions. Usually, however, lowering the commission to zero results in raising other fees, so that the loan company will eventually earn as much as it was supposed to earn. Therefore, it is very likely that in case of a free commission we will pay a little more administrative costs, or the annual interest rate will increase.
First free loan
Loan companies fighting for the customer also offer promotions consisting in the fact that the first loan is completely free of any fees or commissions. It is completely free of charge. For example, if you borrow 1000USD for a period of one month, if you repay the borrowed thousand before that date, you will not incur any additional costs. The company does not earn money for us, but gains a client who in the future can offer another loan, which will not be free anymore. Theoretically, this is a situation in which both sides gain.
Where to look for the best offers?
Loan companies like to advertise on the Internet. However, we should be indifferent to flashy advertising slogans or colorful banners. The best place to find a suitable offer will be the Internet comparison engines and loan rankings. They allow you to sort current offers available on the market in the order from the cheapest to the most expensive. We immediately receive information about the total cost of loans and any fees. In the case of installment loans we will also receive information about the amount of the possible installment. Having such information, choosing the best loan is a matter of seconds.
Resignation from a loan
U.S. law allows you to cancel your loan within 14 days. Even if we have already received the money on your account, we can send you a letter in which we decide to cancel the contract. We do not have to give any reasons for our decision. We simply send the letter and within 30 days return the full amount to the bank account of the lending company. We do not have to pay any fees or commissions.