May 16 2022
What are the loans without interests
Best online loans
Get your first free loan without interest!
Free loans are a reality and have become the favorite option of many users. And it is that the financial entities make this modality available to you, where you will not have to pay additional money. How do they work? It's so easy! Request an amount and return the same amount, without interest or commissions.
What are you waiting for? Forget about fees and learn about the best interest-free loans in Philippines.
Personal loans with low interest
What are interest-free loans?
In a short time, interest-free loans have become a very convenient financing alternative because they are cheaper personal loans. This type of credit without interest is aimed at new customers, and consists of returning the same amount that the company has lent you, without interest (0 APR). Of course, as long as you respect the return period.
Interest-free loans are intended, among other things, to help you build a credit history with a private lender, if you pay on time.
You can get from 300 for free, since normally, loans of this type only offer limited amounts that do not exceed 1,000 PHP. It is a marketing and sales strategy that many financial entities implement to increase their client portfolio.
What are interest-free credits for?
Interest-free loans are intended to cover unforeseen events or emergencies in which we need immediate liquidity, in addition to having time against us. For example, if it's a health emergency, traffic ticket, or car repair, you probably need to act as quickly as possible to avoid prolonging the problem. In these cases, collecting documentation and carrying out banking procedures for several weeks is not an option.
Similarly, these loans can also help us pay for consumer goods or services such as a trip and even some study tuition without any interest, as long as they are mini-loans or small sums of money.
Where to apply for the first interest-free loan?
And if none of these entities ends up fitting what you need, at Moneytochka we have a section dedicated to new online loans where you can opt for more lenders; although yes, verify that they grant the first credit without interest before starting with the application.
Free Loans for Youth and Unemployed
Normally, when we request a loan from the bank, it is mandatory to present a direct debit payslip. However, the reality is that there are a lot of people who also require financing, but find themselves in irregular employment situations, such as students, the unemployed, the self-employed, retirees or workers with temporary contracts.
In this case, it is possible to access loans without payroll and without interest at 0%, as long as you prove some proof or source of regular income that does not necessarily have to come from a work payroll, having alternatives such as:
- Unemployment benefit.
- State aid.
- Student scholarships.
Characteristics of interest-free personal loans
The offers of the best online personal loans without interest, in the Philippines territory, are increasing Why? Take a look at its main features:
- They are online loans aimed exclusively at new clients in the financial institution.
- They tend to be more attractive for people who are going to ask for a loan for the first time (young people and students, above all).
- The average amount ranges from 1000 PHP to 50000 PHP. However, lenders with more attractive conditions are constantly emerging.
- Their terms can range from 30 days to 3 months.
- They do not generate interest or commissions if you return the money within the agreed term from the beginning. Otherwise, you will have to face additional expenses. Therefore, you must read the small print of the contract.
- Although the interest rate is 0, the costs for late payment of installments are usually higher than other types of loans.
In general, they do not request to be on the payroll or to present an endorsement or guarantee.
Free Loans without Endorsement or Guarantee
The best thing about free online loans is that their requirements are very basic. Normally they do not even request a justification of what you will use your loan for. They also offer loans without collateral, that is, they do not require the figure of a guarantor that is part of the contract or the provision of a guarantee in case of default.
This facility is granted by the lending financial institutions because in a fast credit without interest, small amounts are normally handled. In addition, these companies have the fact that you must attach proof of frequent income. In this way, they do not assume a great risk of non-payment.
How do interest-free loans work?
The operation of interest-free loans is very simple:
- You choose the amount you want, from 1000 PHP to an amount that usually does not exceed 50000 PHP.
- You establish the term for the reimbursement, which usually does not exceed 31 days.
Keep in mind that the process is completely online. This means that you can apply for your first loan from the comfort of your home or office in a couple of minutes. You must have a mobile or computer.
And if you meet all the requirements and conditions in a short time you will have the requested money. You would only have to return it within the stipulated period. For example, if you request a loan of 1,000 PHP on April 30, you will have to repay the same 1,000 PHP on May 30.
TIN and APR How to identify a completely free loan?
You can run into financial entities that disguise the conditions of their free loans to make them more attractive. However, you should always read very well what they offer you in the interest rate section:
- T.I.N. (Nominal Interest Rate): it is the general interest of the loan.
- T.A.E. (Annual Equivalent Rate): it is the total cost of the loan. Which includes all possible charges and prorated as a percentage.
There are financial institutions that offer fast loans with 0% T.I.N. This means that the first loan will be interest-free. But it will not be exempt from additional expenses and costs.
So for it to be a completely free first loan, you must specify a 0% APR. This is the true interest-free loan.
Why is no interest paid on the First Loan?
Surely you are wondering if all this fast loans without interest is as they paint it or is it simple advertising. The truth is that it is common to ask, what does the company gain if the loan is free? The answer is simple; New customers.
Offering a free first loan is a strategy used by financial institutions to attract new customers who may request more financing in the future. It really is a commercial tactic that users can benefit from by contracting their first loan for free.
Types of free loans without interest
In the market you can find a wide variety of financial products, but there may be additional fees. If you are considering requesting your first free credit, there are several alternatives to consider. Between them:
There are even credit cards that allow you to postpone your purchases or have the money you need without paying interest. For example, with the Philippines bank credit card you have up to 45 days to return the financing totally free.
As you can see, there are many types of credits that exist to obtain financing at 0%. Of course, each financial product has different characteristics depending on the lender. So, these options could be completely free. Or, alternatively, have some free points, but with commissions. Therefore, you must review and read the smallest letters of the contract very well.
Common uses of credits without interest
Considering that the amount of free credits is small, it allows you to cover any last minute situation. Some common uses:
- Breakdowns in the home.
- Car repairs.
- Payment of utility bills.
- Health expenses.
- Traffic fines.
- Gifts or special purchases.
So that you can obtain low amounts of, for example, loans of 1000 PhP or credits of somewhat higher amounts such as a credit of 1000 PhP or 50 000 PhP online without interest.
Loans without Interest with bad credit score - Is it possible?
The fact of being included in a list of defaulters may make us less eligible to receive financing. However, when it comes to a free loan, financial institutions may approve your application and grant you a quick loan with bad credit score. Currently there is a wide range of lenders, which has made these companies have to make their requirements and demands more flexible to adapt to the most common needs.
Normally, companies study in detail the financial profile of each person, in order to make a better decision. In this way, if you are in a delinquent file, we invite you to send your request in the same way, since beyond evaluating your credit history, they will be able to assess the level of your debt or your current income.
Advantages of an interest-free loan
Fast interest-free loans are a good alternative for those who need to cover an immediate payment, and do not want to pay additional expenses. Its main pros are:
- Immediate online processing: just by entering the page of a credit organization, you register and request your loan. Without going anywhere, or being in queues, good service, quick response, immediate access, and assistance from Monday to Friday within the established hours.
- Flexibility in the requirements: the requirements and conditions are flexible, anyone can have them. From young people to adults, without extra paperwork.
- No interest or commissions: you will not pay any subscription, commissions for studies, or interest rates. However, you should check the interest rates.
- Modest amounts: the amount of the loan does not exceed 1,000 PHP, making it easier to repay. And your data is protected by security policies.
- Credit History – This is an excellent opportunity to start building a credit history. In addition, this modality sometimes accepts bad credit score.
- More credit limit: the financial institutions that offer these personal loans admit requesting a second loan with larger amounts, provided that you meet the deadlines in the first.
Disadvantages of an interest-free loan
Like all forms of financial loans, this type also has disadvantages that you should be aware of before filling out the form:
- They are only available to new customers.
- Terms from 30 days to 3 months.
- The amount is small. If you need money to start a business or buy a car, this financing will not help you.
- Some banks often confuse applicants with the interest rate offered for a free loan, but with added amounts.
What are the requirements to request money without interest?
The requirements and conditions to apply for a loan of this type are very simple. In general, they are the following:
- Be older than 18 and younger than 70 years.
- Do not have debts registered in delinquent files, but on some occasions this modality accepts bad credit score.
- The applicant's documentation must be current.
- Register on the lender's site to fill out the form.
- Have a bank account in a bank in Philippines.
- Demonstrable, regular and sufficient income.
- Active email account.
- Mobile phone in your name.
Remember that these requirements may vary slightly from lender to lender. Above all, when it comes to loans with bad credit score. There are institutions that do grant this type of free credit to people who are on the list of defaulters.
It may also be the case that the lender offers free loans without payroll or interest-free loans for young people. You can consult our opinions section where you can find detailed information about various lenders.
Steps to request a loan without interest online
The procedure to request a secure loan lasts a few minutes and can be summarized in the following steps:
- Visit the lender's website: go to the official website of the lender you have selected. You can consult the ranking of credits without any type of interest to make a comparison with the information.
- Select amount and term: in the instant loan simulator you must choose the capital and term to pay. Consider your personal finances.
- Online registration: register electronically on the platform of the credit organization of your choice. Fill in the form with your personal data.
- Data confirmation: you will receive a call or message from the lender to confirm your information. If you meet the requirements and your economic profile adapts to the conditions of the credit entity, you will receive immediate approval.
The receipt of the money varies according to the bank you have registered. It can be in minutes or in 48 hours. And, remember to use the lender's web simulator. It is the best way to determine the return period and, if there are any added charges or origination commission.
How to pay fast free loans?
The term and conditions of the free loans vary depending on the entity you choose. As a general rule, considering that it is not a high amount, the free credit is usually returned in a single payment on the same date of the next month (30 days). But, maybe you have the opportunity to do it in installments.
As for the payment method, it can be an automatic debit from the linked card or account. Or a bank transfer to the banks managed by the financial institution where you will have to pay the monthly fee.
Early Repayment of a Free Loan
It is logical to think that, if you have the opportunity to repay a debt, it is best to do it as soon as possible so as not to postpone it. However, when it comes to a free loan, we normally talk about small amounts of money and with terms from 30 days to a maximum of 3 months.
Repaying a free loan in advance would only reduce the term of your contract, but it would not allow you to save money, since there are no interests or commissions involved. On the contrary, they may apply a commission or penalty for this that is not worth assuming. It is best to pay interest-free financing following the agreed terms and monthly installments to the letter.
What happens if I can't pay my Interest-Free Loan?
Everything has a solution! If your financial situation has become complicated and there is a possibility that you will not be able to pay a monthly installment on time, it is best to contact the Customer Service department of your lending company as soon as possible.
Normally, these companies will reach some type of negotiation with you, either by reducing your monthly fee, or by extending the payment term. The important thing is that you can notify in a timely manner so that you can enjoy a new agreement with better conditions and that it does not greatly affect your budget or your current financial situation.
Some people believe that fast loans without interest do not carry penalties for delay. For this reason, when they cannot pay a fee, they decide to let the deadline pass and accumulate the debt. This is a big mistake! Interest-free loans can cause problems if you do not pay on time.
Are Interest-Free Loans reliable?
Interest-free loans are safe as long as you go to a reliable entity, with digital security systems for the treatment of your personal and banking data, as well as favorable user opinions. It is important that you are over 18 years of age and that you read all the terms and conditions of the digital contract very well. Never sign an agreement you don't understand or accept offers that seem too good to be true.
With this type of interest-free financing there is nothing to worry about, since interest-free loans are safe because they are low amounts and short repayment terms. In addition, the loan is free as long as you make your payments on time and repay the entire amount within the established period. Otherwise, you may face penalties or interest for late payment.
As the sources of financing with interest-free loans are handled with a short repayment term, if you are not sure of being able to repay the money in the corresponding time, it is best to hire another type of financing; one that offers you a longer term to pay.