In the offers of Polish loan institutions, solutions such as the first loan for free can be found more and more often. Often customers, especially those who have not used the services of the non-banking sector before, approach such solutions with great distrust. After all, even with regard to banks, such a thing as free credit is not only absent but seems completely unreal.
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.
First loan for free as a promotional item for lenders
First of all, it should be clearly stated that solutions such as free payday pay 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 an option such as the first free loan, we always take part in the promotion. This means that if you violate 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 the first 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 and conditions 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 actually have to comply with the provisions of the Consumer Credit Act. This means that borrowing in a parabank always carries a lot of risks, whether it’s a free loan or any other loan service.