0 percent loan and credit – is it possible?

“First loan for free”, “0 percent installments” or “you will give back as much as you borrow” – these are just some of the slogans that are intended to encourage the customer to take out a loan or a loan. However, before purchasing a commitment, it is worth checking how it works and what to avoid about this type of contract.


Incurring liabilities is usually associated with high costs – interest rate, commission or around-the-loan fees. However, you can find free credit offers. A 0 percent loan or 0 percent loan actually exist on the market. However, in order to use them and not be maneuvered into additional services for which we will pay, you must carefully read the offer and the contract of commitment.  

Is zero percent credit really free?

Is zero percent credit really free?

0 percent loans or 0 commission loans are not new to the market. They are most often associated with installment sales, although interest-free cash loans can also be found . This does not mean, however, that the liability is indeed free and the borrower will only pay back as much as he has borrowed. In many cases, when institutions tempt with 0% installments, they increase the commission due. You can also meet the condition of buying insurance or other products. among others bank account.

The actual “loan 0” is when the APRC (actual annual interest rate), i.e. the total cost of credit borne by the consumer, is 0 percent. This means that the bank not only does not charge interest, but also does not charge any commission or any additional costs for the commitment given.  

Most often, however, under the slogans of 0 percent, additional costs are hidden, which affect the amount of the APRC, so before making a decision to buy such an obligation, it is worth thoroughly screening the offer, namely:

  • check whether the cost of the loan is not included in the price of the equipment purchased (in the case of installment loans), comparing the offers of other stores,
  • check whether the customer is not required to extend the warranty on the equipment purchased, which will affect the total cost of the loan,
  • make sure that the condition of a zero percent loan is not the purchase of liability insurance and other additional services, e.g. bank account, credit card,
  • check the loan period, which with such offers may be much shorter than in the case of standard loans,

Check: What is a savings account and what types of offers are on the market?

First loan for free

First loan for free

The non-bank loans market offers a wide range of products. Customers can count on quick cash with minimum formalities. And here the customer is tempted by the slogans “zero percent loan” or “loan commission 0”. As in the case of loans, however, you should carefully look at the terms of such an offer to avoid additional costs, i.e. commissions, insurance, administrative fees.

Loan companies wanting to reach new customers often offer them a zero percent commitment. This applies to the first payday loan they take, which is free of interest, commission and other charges related to servicing the liability. It should be remembered, however, that the low cost loan is for low amounts. Most often, companies offer PLN 500-1000 as part of the promotion.

In addition, a 0 commission loan is offered to clients from a specific age range. Very often exceeding the age of majority is not enough to be able to take advantage of the offer, because companies require the completion of e.g. 21 years.

Importantly, this type of loan is only offered to new customers. In addition, the customer has a fairly short period of time to pay the debt, around 30 days. However, companies may charge additional costs for extending their repayment dates.

Car with no interest rate

Car with no interest rate

When taking a classic car loan, the customer must take into account costs such as commission or interest rate. However, in the era of widespread competition, the institutions make it possible to divide the financing of car purchases into installments without having to pay interest costs.  

However, the 0 percent car loan usually applies to 50/50 financing options. In his case, the customer must have funds for the first payment, which is 50 percent. the value of the vehicle, while the next one is settled after a set period of time, e.g. a year.

However, it is worth remembering that before making a decision to use a given offer, all the terms of the contract should be analyzed, as the nominal interest rate alone does not constitute total credit costs. It may turn out that the customer will be forced to purchase autocasco insurance from a specific insurance representative, which will not always be beneficial to his portfolio. Regular maintenance of the vehicle may be an additional requirement.

Only meeting certain requirements can guarantee a rebate at an interest rate on the liability. On the other hand, if you do not take care of the conditions, a 0 car loan may change over to the regular interest rate rules.

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