Non-bank financial institutions specialize in granting payday loans, ie quick loans as proof. They borrow them on their own terms, and in principle anyone who submits an appropriate application and meets the minimum amount of formalities can receive small amounts. These loans are very easy to get and you get them quickly, which is why it is not surprising that thousands of people use them. It is worth knowing that this type of loan can be taken for free, but you must meet the relevant conditions.
Loan for free – what is it?
A free loan is a term that applies only to payday loans, ie short-term loans for relatively small amounts. They are usually granted for a period of 30 or 60 days for amounts oscillating around 5000 USD. In the financial nomenclature, payday loans are also sometimes called loans, which is why information on “loans for free” can be misleading. The cost-free borrowing only applies to payday loans.
The first loan for free is characterized by the fact that the borrower, taking a given amount, gives the same amount to a non-bank institution. This amount is not increased by any operating costs or interest, ie with a loan of USD 1,000, the client pays USD 1,000 after two months. The condition for taking this type of loan is a completely “clean account” – both in terms of the credit history of the institution and the history of credit check.
How to obtain this loan?
Instant payments for new customers can be made only after completing and accepting the form, which can be submitted via the websites of most non-banking companies. Since this is a loan with a risk, the financial institution must check that the client does not have a negative history in places. These registers contain people who have had problems with repayments in the past. The procedure for the first free loan is similar to the one you are going through when applying for a bank loan. This means that you must also provide a statement of your regular income. After the money appears on your account, you must meet one more important condition – the repayment must be made within the prescribed period. Otherwise, a fee may apply to the loan amount.
A free loan is a very tempting option that consumers use to pay off other financial obligations. This happens especially when sudden, unexpected life situations cause a break in financial continuity. Unfortunately, this is a situation that could lead to a debt loop. The best solution for several of our financial obligations is consolidation, thanks to which it is possible to repay even a large debt from more than one bank or institution in one low installment.