If you want to buy a car or any other object, but you don’t have enough money to cover expenses, you can apply for a loan if you meet the requirements. The best option may seem to be a zero interest loan at first glance, but behind this choice lie many aspects, often not entirely transparent.
Everyone, sooner or later, in life, happens to be forced to apply for a loan, so the best thing is to inquire specifically about the differences and the various proposals.
The loans are not all the same starting from the services offered up to the installments.
Therefore, to avoid additional costs not counted, it is necessary to weigh each aspect before making the final choice.
The zero interest loan allows you to purchase a product, good or service by paying it through a series of installments, without interest. This means that the applicant does not have to return the interest to the bank, but only needs to return the total capital that was the subject of the loan.
But all that glitters is not gold: in fact, often, those who are passed off as zero-interest loans are not at all, since, despite the zero nominal annual rate (TAN), the annual percentage rate (APR) is lifted up. For this reason, in order to avoid rather unpleasant surprises, it is necessary to try to keep the APR as close as possible to 0. The solutions that are defined as “at real zero rate” are those in which both the TAN and the APR are zeroed.
So, if the TAN is set to zero, the APR (the indicator of the total loan cost) also need not be, so you have to make sure that these details are clear before applying for a loan with zero interest , that is, you must be sure that this is actually free of charge.
When can the Zero Rate be applied?
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The zero-interest loan is a type of personal financing that has become very common in recent years due to the slowdown in the economy which has completely demolished the purchasing power of every Italian. You will have seen that, when purchasing a television, a computer, a new appliance or other consumer goods, most of the time, especially in large shopping centers, the zero rate is proposed.
Loan agencies and dealers usually make arrangements to ensure that the buyer can pay a very expensive item in convenient monthly installments without any interest, therefore without having to return a higher cost than the one requested.
By contacting the provider directly, often, even if it is very rare, there is also the possibility of obtaining a loan with zero interest for the purchase of a car. The zero rate is convenient for both the dealer and the buyer in order to make the solution convenient and safe.
One of the most important things that must be taken into account when applying for a zero interest loan is the fact that the apparent convenience of the rate must be subordinated to the sustainability of the expense. In fact, the zero rate is not always the best choice because it binds to certain rules imposed by the provider.
For example, sometimes it may be more convenient not to have the zero rate, but to have the possibility of prolonging the repayment of the sum by diluting it in several installments of lower economic value.
When is the APR zeroed?
Even if these are rather rare situations, sometimes the full zero rate is advertised, including the zeroed APR, it is possible that the retailer has already included the management costs of the file in the price of the purchased good, or if it has been accepted in full. Usually, to access this type of interest-free loan, a minimum spending ceiling is needed to obtain the benefits.
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The characteristics of the zero interest personal loan
The zero interest personal loan specifically concerns a consumer credit product with a loan of an established amount without interest, which can be repaid with a usually monthly installments plan. Unlike the above, personal loans are included in the category of non-finalized loans, i.e. loans that are not directly related to the purchase of services and goods.
Therefore, unlike solutions such as those of targeted loans, there is no agreement with the agreement, but the process is concluded only between the applicant and the lender, that is, the only subjects who are actually interested.
So, if the application for a zero-interest personal loan is accepted, the money arrives immediately to the consumer and not to the partner (third party).
In this case, a guarantee (service or good) is necessary to avoid failure to return the sum, otherwise this solution would become rather risky for the Institute that financed it, that is, a financial company or a bank.
Personal loan at zero interest: what are the requirements to access it
Typically, each bank or financial institution adheres to specific criteria and different rules when evaluating the application for a zero-interest personal loan. Normally, a request for a loan can be sent by any person between 18 and 70 years of age, but above all to those who can guarantee with certainty the total repayment of the loaned amount.
An employee will be able to present his paycheck (or pension payslips for pensioners), as well as a self-employed worker will have to show his tax return to verify the effective certainty of the loan repayment.
If the impossibility of the repayment of the loan is verified, or if an applicant has no way of presenting the tax return or the paycheck, a third person will be required to undertake to repay the institution in the event that the applicant had not the chance to do it. Obviously, the third person will also have to prove that he is able to bear the costs of returning the loan.
In fact, the bank or the credit institution must protect itself well from the risk of losing the money lent, for this reason very thorough checks are necessary regarding the economic possibilities and the situation of the applicant.