Is a free loan really free?



Financial institutions called parabank are constantly competing with each other with an advertising offer that aims to attract the attention of more and more customers. Recently, a campaign promoting free payday loans has been a sensation.

Are they really free as the advertising slogan says? It turns out that there is a lot of truth in this message. But from the beginning. Many companies often promote their payday loans for free via the Internet. However, only people who are not yet in the databases of non-bank companies can count on free payday loans.

An offer that is intended to be a free payday loan?

An offer that is intended to be a free payday loan?

What should you know before you reach for an offer that is intended to be a free payday loan? It is obvious that these are the right shoes only the first time you apply for a loan. If someone is a new customer, they can actually receive an offer for free, which means that the annual interest rate for this type of loan will be 0%.

In addition, all other fees related to any commissions, fee for granting payday loans may also be USD 0. This means that we actually take money and give back as much as we received after the deadline in the contract. So it follows from this offer that it is actually possible to take a free payday loan.

The deadline for payday loans is strictly included in the contract

The deadline for payday loans is strictly included in the contract

So any delays resulting from exceeding it may unfortunately be associated with additional fees about which we will certainly be informed. As for the tariff of fees resulting from default, they are provided in the contract or we can find out about them by sending an inquiry to a non-bank company.

If, however, it concerns the amount of all additional fees, then, according to the amendment to the Anti-usury Act, they must fall within the thresholds included in the Act. If you want to know more about this topic, you can contact the Consumer Ombudsman who will explain your doubts.

Non-bank companies in the contract as well as in their offer can specify what maximum loan amount can be included in the free offer. These are usually smaller amounts than the general financial offers available from the lender.

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