The microcredit company FinaGuru issues short-term and long-term online loans to individuals. The organization does not have a branch network; it operates remotely via the Internet.
Creditnice is a microfinance company operating since 2013. It specializes in loans with online processing, including to pay for purchases from partners; it also issues virtual credit cards and provides credit lines.
What does interest-free loan mean?
An interest-free loan is a promotional product that most microfinance organizations offer new clients.
Interest for the use of borrowed money is not accrued if the client repays the debt on time. Otherwise, if the microloan repayment deadlines are violated, not only interest will be charged for the entire past period, but also penalties and late fees.
With the help of such an advantageous offer, MFOs expand their client base and lure borrowers from competitors. For the client himself, this is a good option to check the operation of the service and urgently solve the financial problem on the best terms.
You can take out your first microloan for a small amount at 0% interest with virtually no refusal. We offer you to compare popular products and choose the most suitable interest-free loan from trusted companies.
Advantages and disadvantages of free loans
Advantages of an interest-free loan:
- No overpayment for the use of borrowed funds. You must return exactly the same amount as was issued
- Advantageous offer for new clients. You can get acquainted with the work of microfinance organizations, evaluate the speed of service, compare the convenience of obtaining and repaying a loan
- A good option for an urgent solution to emerging financial difficulties. You can get money around the clock
- Quick execution and consideration of the application, without collecting additional documents, long waits and checks
Disadvantages of an interest-free microloan:
- Loan money without overpayment is available only to new borrowers who contacted a microfinance company for the first time
- These offers are limited. Not all MFOs offer promotions on interest-free loans
- The loan amount for new clients is usually no more than $15,000, and the loan term is up to 30 days. The money must be returned within a certain period of time so that interest does not accrue.
How much money can be issued without overpayments to microfinance organizations?
The terms of the promotion apply to small short-term loans. On average, you can receive an amount from $1,000 to $15,000 for up to 1 month. Specific product parameters depend on the selected MFC or MCC. Providing long-term loans without interest for a period of up to 1 year with repayment of the debt in installments is unprofitable for MFOs.
How to get your first loan without interest from an MFO
The main condition for obtaining an interest-free loan is that the client contacts the selected microfinance organization for the first time. To apply for a loan, you must first meet the mandatory requirements for borrowers.