First loan for free: key information

Written By : on October 27, 2019

 

In the offers of Polish loan institutions, solutions such as the first loan for free can be found more and more often. Often clients, especially those who have not used the services of the non-banking sector before, approach such solutions with great distrust. In the end, even with regard to banks, such a thing as free credit is not only absent but it seems almost unreal. vordermanmotorwerks.com for clarification

However, it is worth being aware that loan institutions operate according to a different business model than banks. What’s more, the turnover and profits of companies in this sector are growing every year, which allows loan institutions to offer their clients solutions that, for example, banking institutions simply could not afford for purely economic reasons.

So what is the most important thing to know about services such as the first free loan?

So what is the most important thing to know about services such as the first free loan?

Let’s take a closer look at this issue and try to answer this question.

First of all, it should be clearly stated that solutions such as a free loan are always part of the promotional offer of loan institutions and not part of the basic offer. What does this fact mean from the customer’s perspective? As is well known, each promotion has certain regulations, which specify, among others, the conditions of using the promotion. Obviously, this also applies to free loans offered by loan institutions.

When we use such an option as the first free loan , we always take part in the promotion.

When we use such an option as the first free loan , we always take part in the promotion.

This means that in the event of a violation of the terms of this promotion, the promotional terms may cease to apply. There are quite a few entries on the Internet of people who took advantage of the option to take out their first loan at the APRC of 0%, then they did not repay the liability on time and are very surprised that the loan institution demanded repayment of the loan not on promotional terms but according to standard cost table. Let us explain, therefore, that the regulations of such solutions as the first loan for free always contain information that the condition for taking advantage of the promotion is timely repayment of the loan. Otherwise, the promotional terms automatically cease to apply.

Is a free loan really free?

Is a free loan really free?

This is another important issue that interests many customers. The answer to the above question is yes. A loan with an APRC of 0% means that the customer repays only the amount equal to the amount of the loan (unless, of course, he does not violate the terms of the promotion, for example by not repaying on time). At the same time, it is worth noting that the above rule applies only to entities that have the status of loan institutions.

In this case, can the customer also assume that the loan will not contain any additional hidden costs? Unfortunately, parabanks do not operate in the same way as loan institutions and do not in fact have to comply with the provisions of the Consumer Credit Act. This means that borrowing in a parabank always involves a lot of risk, whether it’s a free loan or any other loan service.

Michael O'hare

Author: Michael O'hare

Michael is a Experience Auto Financing Specialist that Prides himself on Providing a Full Scope of Options for all His Clients and Customers. Not only does he provide guidance and assistance for those looking into getting a Car Loan, but helps those who have challenging credit scores to get approved for the lowest rates possible!