First Free Loan – what are the pros and cons?

 

The first free loan is often a simple solution for applicants who need a small sum quickly. The first loan thus serves as a quick payday loan immediately with money to the account, but it can also take the form of a cheap loan without proof of income.

First free loan, how to get?

First free loan, how to get?

The first free loan is a favorite product of several non-bank providers. Getting a quick and online loan and returning only the amount borrowed is tempting.

But the first free loan has certain rules and the basic thing is that only a new client can use it. If the applicant has borrowed from the company before, he will not receive a free loan for the second time. In some cases, the free loan is limited to a certain amount. Each non-banking company has conditions set a little differently.

As with other non-bank loans, and also the first loan free of charge, the conditions for applicants are mild. So many applications are approved. It is often not necessary to prove income to approve the first free loan. The first free loan is without a register of borrowers, without a guarantor and will be reached by most people over 18 years.

What advantages and disadvantages the first free loan brings

What advantages and disadvantages the first free loan brings

Like other bank and non-bank loans, this quick form of loan has its pros and cons. Therefore, each borrower should study the company, review other clients and compare multiple providers before arranging the loan.

Often, the first free loan is advertised as a loan without unnecessary paperwork. Although it often is only a low loan is a popular form of loans before payments or or unexpected expenses (broken appliance, etc.). The first free loan is so popular, as is a loan without a register or pledge.

Advantages of a quick first free loan:

  • The new client pays no fees or interest
  • Offered to all new clients
  • Requests are processed quickly
  • Loan immediately on account
  • Without a guarantor
  • Without pledge of property
  • No proof of income

Disadvantages of a quick first free loan:

  • It can only be used once for one company
  • Low amount borrowed
  • Shorter maturity
  • Extension of maturity for a fee
  • Few providers in the market
  • High penalties for late payment
  • Need to have your own bank account

The list of advantages and disadvantages of the first free loan shows that the applicant has many reasons to choose the first free loan from a new provider. However, the disadvantage is that if he is satisfied with the provider and wants to borrow again, the next loan will already be with fees and interest. For solving unexpected problems, such as a broken appliance at home, a low sum is offered just right.

The first free loan looks disadvantageous to the provider, but it is not. While the first loan free of charges and do not earn interest, but the client thanks to the zero charges to build confidence in the provider. There is a better chance that the client will return to this company during the next loan.

What to think before taking out the loan?

What to think before taking out the loan?

If the applicant becomes more likely to need to borrow a smaller amount before the payout, it is advisable to think for example of an overdraft with a current account. If the applicant has more loans and deals with repayments elsewhere, he should definitely consider refinancing or consolidating the loans, thus reducing the amount of fees and installments.