When is a loan really free?

A loan is not made free by the size of the advertised discount. For the ordinary repayment plan, compare the amount you receive with the total of all required payments and charges. Then read the conditions attached to that calculation. A zero-interest promotion may still involve fees or only apply for a limited period.

Read the payment schedule first

The schedule shows when money must leave your account. Check whether the entire balance is due at the end of a short period or is repaid through instalments. A promise of no payment for the first few months does not, by itself, say whether interest or charges accumulate during those months.

Ask the provider to explain any difference between the promotional example and your individual offer. The amount, term, customer category and application date may all affect eligibility. Earlier descriptions of free first loans on this website should be treated as historical marketing, not confirmation that the same deal is available today.

Test what happens if the plan changes

Find the provisions for late payment, extensions and early repayment. Do not assume that a missed date will simply move the schedule forward at no cost. If you expect to repay from a particular salary or other payment, allow for the possibility that it arrives later than expected.

A lender’s affordability assessment is still required; a promotion is not an exemption from eligibility checks. Provide accurate income and obligation details. Borrowing to cover a recurring monthly deficit remains risky even if an introductory price is attractive.

Compare an ordinary repayment scenario with other suitable products using the same amount and term. Our guide to BVKKMN explains a useful cost measure. The final decision should rest on the complete agreement and a realistic budget, rather than the word free alone.