A personal loan refers to the money you borrow for various purposes. Take for instance, you may use a personal loan to renovate your home, consolidate your debts, plan a dream wedding, or purchase food for your family. Banks, credit unions, and online lenders can offer personal loans if you meet their requirements. You must repay the money you borrow over time, usually with some interest. As we proceed, I will discuss zero interest personal loans to your understanding.
Zero-interest loans require you to repay the principal balance by honoring a strict and rigid deadline whereby you must repay the entire balance on a specified date. If you fail to stick to the deadline, you may face hefty penalties. Usually, such loans are given to students in schools since they have no source of income to repay the loans with interest. Again, the loan issuers usually give you a certain period to repay your debt.
Other than penalties when you delay paying your loan, you may also encounter fees from some lenders when you take a personal loan from them. You may need to pay a one-time processing fee when you apply for a personal loan, of which the amount is non-refundable. However, if the institution you are borrowing from does not give you the loan, you can get back your processing fee.
Read Also: Best Credit Unions For Personal Loans
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Best ways to get zero-interest personal loans
There are several ways you can get zero-interest loans. These include the following.
1. Get a student loan
We have various financial companies that offer zero-free interest loans to students to pay school fees. Getting a student loan can be great if you plan to get a loan to repay your school fees. You will get sufficient study time and repay the loan when you graduate. Usually, you can repay the whole amount or pay in bits. In most cases, you get a grace period to look for a job and repay your debt, which may be a year or two after graduation. Remember that penalties for defaulting on your loan may be charged monthly after the due date.
2. Be financed to purchase an item.
We have businesses that give their customers zero-interest loans to sell out their high-cost items. Such loans usually charge no interest if you stick to the deadline. You may be planning to purchase a posho mill, a tractor, a car, and so on, but you need more money to buy the commodity. In such a case, the seller may give you a personal loan with no interest as long as you submit the relevant documents.
3. Get a loan from your friend or relative.
In some cases, your relative or friend does not require you to repay a loan with interest. If you have an emergency requiring financial attention, consider borrowing from your relative and returning the same amount later.
Qualifications for zero-interest personal loans
It’s not easy to get a personal loan that has no interest. There are some qualifications you must meet to get one. The top qualification requirement is good credit history. You typically require good credit scores of at least 670 to get a zero-interest loan. However, most lenders require scores of at least 740.
Another way you may qualify for a zero-interest rate personal loan is by being a student if you join a college or a university. Financial institutions can give you a personal loan to pay your school fees and fund other things within your study period. Such loans usually come from government financial institutions, although you may get some private companies with such offers.
Banks that provide zero-interest personal loans
We have several banks that provide zero-interest personal loans to those eligible. They include the following.
The institution gives you zero-interest cash advances of up to $250 if you don’t have a Roar Money account or $1,000 if you have a Roar Money checking account with recurring deposits. The institution does not do a credit check.
- Free delivery of cash within 48 hours for free.
- You can get a loan without a RoarMoney account.
- No credit check is required.
- Requires a checking account with recurring income deposits.
- Fees for fast cash delivery earlier than 48 hours.
Earnin gives you interest-free cash advances of at most $500 per pay period as you wait for your next paycheck. The company does not charge mandatory fees for standard transfers, which take 1-3 business days. If you need the funds sooner, you may get them in minutes using Lightning Speed when you pay up to $3.99 in fees.
- No credit check
- Low-balance alerts for overdraft protection
- Ability to get money in minutes
- Ability to get money in minutes if you pay some fees
Affirm is a “buy now, pay later” platform that allows retailers to give installment loans before checkout. Therefore, you may use Affirm as a payment option on the participating merchant’s website or app. Affirm pay-in-four option may offer 0% APR for some retailers. However, larger loans offered through the company may not be interest-free.
- Allows you to purchase items if you have insufficient money.
- No impact on your credit scores
- Larger loans may attract interest.
Sezzle is also a buy-now and pay-later financial company which enables you to split up your purchase at checkout. It works with thousands of retailers, which include Pros Shops, Touch of Modern, Bass, and Target.
- Enables you to monitor your expenditures on your app.
- Sezzle Up account holders can grow their credit scores
- Free payment rescheduling
- Failed payment and rescheduled payment fee.
- Charges convenience fees when you use a debit, credit, or prepaid benefits card to make scheduled payments.
- Upgrades to Sezzle Up accounts attract fees.
Chime is an online financial technology company. It offers zero or low interest interest loans to eligible members starting at $100, although there is a fee.
- No fee to transfer funds
- Overdraft protection
- Offers a secured credit card to build credit
- Fee for Chime Instant Loans
Limitations of zero-interest personal loans
Even though several firms offer zero-interest loans to borrowers, there are some how limitations as well. First, you may only get a personal loan if you have good credit scores. In such a case, you are a risky borrower, and no lender would like to risk their money on you.
As I mentioned earlier that some zero-interest loans are only for college and university students to pay their school fees. Therefore, if you are not a student, you may not get a zero-interest loan, especially if you have poor credit scores.
Conclusion on the Best Ways to Get Zero Interest Personal Loans
A personal loan refers to the money you get from a financial institution to spend on things such as weddings, food, medical, transport, school fees, etc. Even though most personal loans attract interest, you may get a zero-interest loan to pay school fees or purchase an expensive item at an outlet. Unfortunately, zero-interest personal loans attract some hefty fees if you do not pay on time.