Usually when someone lends money they want to make money on this and they thus charge an interest. Because it is true that a lender may by law only impose fees on a loan that corresponds to their actual costs. Should they then receive some extra money, these must be picked out by an interest rate. This means that loans that are interest-free are not particularly common. http://cheekysquirrel.net/2019/07/25/instant-approval-debt-consolidation-loans-does-debt-consolidation-loan-help/ for further explanation
However, there are some exceptions where loans can be called interest-free or partly this. We will look at some of these examples below.
Buy on installment
Buying on installment means that you borrow money even if you call it installment. Here, the shops can often assume that the loans are interest-free. Then it is important to look carefully if they are only interest-free or if they are completely free because it is as we were previously in two different things. Because it is still quite possible that you get to pay things like a setup fee. If the loan is to be completely free, the effective interest rate should be 0%. Then it doesn’t have to be expensive if it is just the question of a setup fee which normally costs a few hundred kronor.
One thing that is good to know is that if you do not manage your repayments according to the plan laid out, there is a risk that the loan will no longer be interest-free. Your installment can automatically be changed to a regular loan with costs. If this can happen is stated in the loan terms.
These types of smaller loans are often far from cheap to obtain as interest rates and fees in relation to the loan amount are often high. But there may be an opportunity for interest-free loans here and that is if you are a new customer with a lender. It is not at all uncommon for lenders to offer new customers to borrow from them completely free of charge.
Loans with interest-free period
These are not loans that are completely interest-free, but only have periods that are interest-free. This may mean, for example, that you do not pay any interest for the first 12 months. The advantage of these loans is that they are cheaper during this initial period and then start to cost money.
Use a credit card
Credit cards are often something they talk about as being expensive and this is true but only partially. As long as you repay the money according to the bill that you will receive the month after the purchase, you have actually borrowed money without paying any interest at all. It is only if you do not repay then that interest will start to be deducted. So if you want to borrow money interest-free in this way, it is important to make sure that he has enough financial means to be able to repay everything on the bill.
Above, we have described some examples of loans that may be interest-free or partly. As you notice with most of what we have written, it is important to watch out. Anything that is interest free need not be free and it may cost more in the future if you do not follow that plan.
A good basic tip is therefore to be strongly critical of any lender who says they lend money interest-free. Check the terms carefully to make sure that there are really no costs now or later that you did not expect.