Free loans: What are they and how do I get them?

Surely you have seen promotions where companies offer the first free loan, and you will wonder, is this possible? The answer is yes. Today, many companies offer you the possibility of applying for your first interest-free loan. This is because it is one of the ways they have to attract new customers. Do you want to know more about this type of loans? Keep reading! You will immediately know more details.

What are free loans?

money loan

Free loans are financial products offered by private lenders. In this mode, you receive for example 300 dollars and at the end of the term you pay the same 300 dollars. There is no trick! Generally, when you apply for a free loan, you will not have to face expenses such as interest, nor fees for processing, opening, among others. But why do lenders grant interest-free loans? That’s a good question.

Credit organizations to attract new customers constantly design financial products, including free loans. This is a way to attract new customers, who want to start building their credit history. For this reason, a financing opportunity like this allows companies to be more attractive to new users.

How much money can I ask for in a free loan?

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Free loans are high-risk financial instruments for private lenders. For this reason, the amounts granted to you are small, and usually do not exceed a maximum of 500 dollars.

In addition, this financing is generally aimed at covering minimum expenses, but which cannot be paid at a time of trouble; as for example: the payment of the bill of a service, buy medicines, a repair of an appliance, among others. It should be noted that requesting a free loan is a possibility to create a credit history in the company. This means that after you pay your first financing, the company allows you to apply for other larger loans. However, for future loans you will have to pay interest.

What is the deadline to repay free loans?

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The deadlines for repaying interest-free loans are very short. This is because they are usually mini credits. Usually, payment is established in a single installment, within a period that can be up to 7 to 30 days.

However, some credit institutions may establish cancellations of weekly installments, to give you greater flexibility of payment. However, everything will depend on you, choosing which option is more convenient.

What are the requirements to request them?

money loan

The requirements to apply for immediate credits are characterized by being very simple. Generally, to be granted interest-free loans you must have:

  • Age between 18 and 70 years.
  • Documentation in force as DNI / NIE.
  • Live in Spain.
  • Have an account at a bank in Spain in your name.
  • Provide an active email address and a mobile phone for contact.
  • Receive periodic and recurring income to cover the loan payment. These income can be by pension, unemployment, self-employment, subsidies, payroll, leases, scholarships, among others.

Free loans: How is the application process?

money loan

Free loans can be requested quickly and comfortably. In general, companies have websites that allow you to apply for these financing online. That is, you do not have to move from your home or work to apply for the loan without the need for paperwork. You only need a mobile device connected to the internet and enter the website of the credit institution.

There you will have to make a registration with your personal and financial data that will not take more than 10 minutes to complete. Then you must wait for the lender to contact you to verify your information. If your economic profile conforms to the terms and conditions you receive the approval and the money is transferred to you in minutes.

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