Taking a loan and paying no extra money on installments – that is the wish of anyone who needs to borrow money. And no matter if you are looking for funds to buy a car or to quickly cover sudden expenses before payout. Are there any loans on the financial market without an increase? Who provides them and what can they have hidden tricks?
Quick Loan Before Payday – First Free
If you are dealing with a defective washing machine or a necessary car repair a few days before the payout, and you do not have enough cash in stock, you can go for some of the so-called quick loans before payout. There is a plethora of these on the market, but their main disadvantage is that you pay up to several hundred or a thousand crowns for a few borrowed thousands for one or two weeks.
But there are exceptions in this area that will not require you to do anything else – they will lend you no extra charge. Let’s mention for example the Zaplo loan, where you can get up to 8000 CZK for the first time for up to 30 days and return only what you borrowed. But beware – for the second and the next loan, you will not be able to avoid the credit.
Interest-free car loans
Even in the area of larger loans, you can find products that will not want you but repaying what you have borrowed. Some car dealers offer interest-free car loans. In short, you take a loan to buy a car, for example with a two-year maturity, and you will not pay anything extra in installments. What’s the hook? As a rule, it is necessary to arrange accident insurance in these cases, which can then cost you ten or even fifteen thousand a year. However, this cannot be considered a major problem – “havarijko” can save you a lot of trouble in case of problems.
Installment sale without increase
Another area where we can find zero-interest loans is hire-purchase sales – a special-purpose consumer loan that you can arrange directly with the merchant. Typically, this option can be found at home appliance or electronics retailers – be it eshops or stone shops. As with cars, the main driving force behind a dealer is to sell a product, not to earn a loan. So you don’t have to worry about any major intricacies. Rather, it is necessary to keep an eye on whether the price of a given product is excessively high compared to the competition, or what the customer’s reference has, the complaint process, etc.
What to watch out for
Although the new Consumer Credit Act, which has been in force since 1.12.2016, provides more consumer protection than before, it is still necessary to remember some of the main principles of safe lending. This is especially true for products that attract you to zero interest rates. First of all, you need to read the loan agreement and general terms and conditions carefully. It is possible that the “free” will eventually be redeemed by unexpected charges. Always pay the loan installments on time, but be sure to find out the penalties for late repayments. Indeed, some less solid companies set fines and penalties disproportionately high and “earn” on clients who are late with repayment.