Free loans – it sounds like something completely unbelievable. However, very high competition on the market of loan companies in Poland caused that some enterprises decided on unusual marketing campaigns.
The first loan taken by a new customer is often free.
This means that no commission or interest rate is charged and no costs are incurred Insurance. For free loans, the actual APRC (actual annual interest rate) is 0%. However, we must remember that there is never anything for free . Although the first loan is for free, we usually have to go through the standard verification procedure, which may mean the need to provide the documents required by the borrower. There are often refusals, so unfortunately not everyone will have the opportunity to use this solution. Importantly, most of these offers are for very small loans.
The so-called quick payday loans , which the offer most often concerns, rarely exceed the amount of PLN 1,000.
Most often, the contract amounts to several hundred zlotys, and such payday loans must be repaid fairly quickly – even within a few or several days. We also remember that in the absence of timely payment we will have to take into account the very high costs associated with the recovery of delayed debt. Importantly, even if we repay the loan on time, the lender will strongly encourage us to take advantage of another fully paid loan. The lender must do this – he will want to earn us, he has covered all the costs of the first loan. However, subsequent contracts will no longer be free, it is worth remembering. In some cases, the next contract may bear interest even at the level of several thousand percent per year!
Free loans can, however, be an interesting way to obtain quick cash for people who need such money, and at the same time do not want to incur the high costs associated with a regular payday loan agreement.
Is it worth using this solution?
Of course, but remembering about the high costs of defaulting on the payment deadline and the huge collection costs.