Fast loans are one of the most popular loans, because they can be obtained easy and quickly. Fast loans are meant for unpredictable and urgent situations when extra means are needed, but personal funds are spent, for example, accidents, immediate visits to the doctor or money for the next pay day. Fast loans are available from the year of 2007, but the number of lenders still grows. To attract new clients and to maintain the competition, lenders offer an interest free loans which sometimes are called free loans.
Interest free loan could be called the first loan for free, because it is for free only then, when it is borrowed for the first time. Interest free loan is a great opportunity to get the loan for very favourable conditions. This loan means that the borrower has to return the same amount of money which was borrowed at the beginning. For example, if borrower receives a loan of 100 lari, in the end of repayment term it has to return exactly 100 lari.
Fast loans are usually detrimental, because they have high interest rates, as well as their repayment time is short – only up to 30 days. If borrower prefers an interest free loan, it is a winner. It is clear that loans like these which have 0% interest rate are not profitable for lenders – actually interest free loans are just a way how to attract new clients. In addition, when the lender offers an interest free loan, it hopes that, when the borrower will need the loan again, it will be loyal and will borrow money from the lender which lend an interest free loan.
Interest free loan is meant only for new clients which means that regular clients do not have a possibility to get an interest free loan. However, it does not mean that, if the client has already borrowed an interest free loan, it has no possibilities to get an interest free loan ever again, because the majority of lenders offers interest free loans. Namely, interest free loan is obtainable from any lender, unless the borrower has not used this lender’s services ever before.
Like other fast loans, interest free loans are short term loans which means that their repayment time is up to 30 days. Interest free loan cannot be extended so that the borrower does not need to pay for lender’s services. When the repayment time of interest free loan is extended, it is re-issued to regular fast loan with interest rate. Lenders aversely extend the repayment term of loans which do not have interest rates, because it creates unnecessary expenses for borrowers. Interest free loan must be repaid in time, so it would be beneficial. When person decides that it needs the loan, the most important thing is to understand the way in which the loan will be repaid – it applies not only to interest free loans, but also on loans with interest rates.
Potential borrower has to correspond to lender’s criteria to get the interest free loan. Person who wants to borrow money has to be the citizen of Georgia and it has to be of a certain age. One of the most important aspects which lenders check is potential client’s income. If potential borrower does not have regular and stable monthly income, lender may reject borrower’s requirement for the loan. It is very important for lenders that borrowers are able to repay the loan. If the amount of loan is small, documents which formally approve person’s income may not be required. In this case borrower tells only its income submitting a loan application. Some borrowers provide false information about their income, because they do not have regular and stable income, but everyone has to know that this is a criminally punishable action. Loan is not worth the risk to create unnecessary problems with the law. As well as providing false information person risks with inability to pay the loan. Because of lying person can get into debts, the amount of debts can increase, as well as lender can turn to debt collectors or bailiffs to recover money.
Lenders also pay attention to potential client’s credit history. To receive an interest free loan or, in other words, free loan, potential client’s credit history cannot be negative. Lenders also explore whether other fast loans are repaid. Credit history is easily damageable – retardation of loan payments forms debts. In cases like these borrower gets in debtors register and stays there for about 10 years even if the loan is repaid. When the lender estimates the potential borrower, it checks this register. If the borrower has got there recently, it is unlikely that the lender will lend money. If the borrower has repaid the loan many years ago, the lender may lend money, estimating other aspects. Credit history includes all of person’s loan commitments – those which are repaid without problems and those which were complicated to repay. If you want to get the loan in the future, try to settle all of loan obligations without the hassles, namely, try to repay loans in time and in full amount to avoid debts and fees.
Today there are a lot of lenders who offer interest free loans, therefore, it is necessary to estimate all of lenders and their offers, because they differ from each other with various factors. In order to facilitate potential borrowers research and collation of lenders, today everyone can find different websites with special tables which compare offers of the most popular lenders. Firstly, it is recommended to find lenders who offer an interest free loans. Despite the fact that almost all lenders offer such possibility, there are some lenders who do not offer free loans.
Secondly, it is important to compare the maximum amounts of loans which are offered to new clients. Despite the fact that lenders offer loans in amount of several hundreds, new clients do not have possibility to get loans in such amounts. This is why everyone should compare the maximum amounts of loans for regular customers as well, especially, if you know that you will need bigger loan next time.
Thirdly, it is necessary to pay attention to repayment time. Usually interest free loans have repayment term which is not longer than 30 days or one month, but there are some lenders which offer repayment time up to 45 days as well. Despite the fact that everyone should know how to repay the loan before it is borrowed, it is impossible to foresee everything in life. Everything can occur while the loan is still outstanding, for example, urgent medical expenses or other unpredicted expenses which cannot be postponed. In situations like these it is recommended to use an extension of repayment time. Each of lenders offers different fee for repayment time extension which directly depends on the amount of loan. This fee can vary from 10% to 30%. That is why potential clients should compare fees for repayment time extension too.
Do not forget to compare interest rates as well. Despite the fact that interest free loans do not have interest rates, in case of repayment time extension when an interest free loan becomes a regular fast loan interest rates play a role. Because of this choose the lender which offers the lowest interest rate.
It is possible to compare lenders, basing on their working time as well. The majority of society thinks that it is possible to borrow money at any time of the day. Of course, the borrower can submit a loan application both in the early morning and in the late evening, but lenders have their own working time. It means that the borrower can submit a loan application even at 03:00 AM, but it will be examined only then, when the lender will start its work, for example, at 08:00 AM. Namely, it is impossible to get an interest free loan, like other loans, at any time of the day. Every lender has different working time, therefore, it is important to compare this factor as well. There are lenders who lend money from 09:00 AM to 06:00 PM, but there are also lenders who have longer working days – from 07:00 AM to 00:00. It is important to pay attention to working hours on weekends and holidays too.
It is important to take into account not only lender’s working time, but also loan’s issuing time. Fast loan lenders often advertise that they lend money within 10 to 15 minutes, but it does not apply to all lenders. If it is significant for you, take it into account and compare. The majority of lenders transfer money to borrower’s bank account within mentioned 10 to 15 minutes, but some lenders transfer money within one hour.
If convenience is a key factor in the choice of lender, look for lenders who lend money via SMS, namely, look for lenders who offer loans to which you can apply by text message. It is very convenient way to get money, because you do not have to go outside the house.
When the potential client has compared all lenders and their offers, and has chosen the most appropriate and the most beneficial loan, the first thing which has to be done, is registration in lender’s website. Without the registration it is impossible to submit a loan application and to receive the loan, thereby this step is inescapable. Borrower has to take into account that the total process for obtaining a loan will be longer than the time which lenders advertise.
During the registration the potential client has to provide an information which includes personal data, phone number and active bank account. It is important to provide an information which is true and precise, otherwise loan might not be issued. When the registration is done, the borrower has to transfer certain amount of money to lender’s bank account to prove its identity and to confirm the registration. When money is transferred, person can submit a loan application, giving the necessary information. Usually it is recommended to repay the loan as soon as possible to save money on interest payments, but since interest free loans do not have interest rates, it is recommended to choose the longest repayment time to be able to save money and pay off the loan successfully. But if borrower knows that there is no need for such long repayment time, of course, it can choose shorter term. Shorter repayment time allows to repay the loan without debts and without deterioration of credit history, because money is spent on loan repayment, not on other unnecessary things.
After submitting of loan application person needs to wait for lender’s answer. When the lender receives potential client’s application, it checks whether person corresponds to its criteria and preconditions. When the checking is done, lender decides whether to approve or reject the request. If the answer is positive, borrower needs to wait for money in its bank account. Interest free loan, like other loans, has to be spent responsibly. It definitely should not be spent for entertainments and other futile aims.