Archive April 2019

Loans with no fees and no interest

Competition in the loan market is currently so great that it is no longer a problem to get a loan that is completely free of fees and interest. You can borrow for example CZK 3,000 and return CZK 3,000 and not even an extra crown. Some loans are offered by some non-bank companies, but they only provide the loan free of charge for the first time – in the case of a further loan application, the client has to pay the fee.

It is also necessary to say that these free loans are provided only for small amounts – usually a maximum of CZK 10,000, only rarely is it possible to borrow a higher amount without charge and interest. For large loans of tens to hundreds of thousands, there is no such possibility, and it is always necessary to reckon with a slightly higher amount than you have borrowed.

Who offers loans without fees and interest?

Who offers loans without fees and interest?

As has been said, these are exclusively non-bank companies that attract especially those who take out a loan for the first time in their lives, or risky clients who cannot get a loan from a bank. There is nothing special about free-of-charge loan offers and there is no need to worry that such a loan is not serious – the competition in this area is so great that the first free loan offer pays off – many clients borrow again after the first good experience.

How to choose the best loan without fees?

How to choose the best loan without fees?

Above all, cheaters should be avoided when choosing the ideal loan without fees and interest. Therefore, never arrange such loans on the basis of advertising texts in newspapers or advertisements posted outside – always arrange the loan over the Internet and get the basic information from the provider. The easiest and fastest method is to use one of the loan comparators – for these sites you can be sure that only verified companies are included in the comparison.

What do you want to watch for free loans?

What do you want to watch for free loans?

For loans without fees and interest, two things must be taken into account. First, you need to select a truly solid and proven company – there are a lot of fraudsters on the market who claim to provide a loan for free, but in fact it is a pure fraud (eg those who operate overpriced telephone lines, etc.). The second thing to remember is the due date – if you repay the loan on time, everything is fine and no additional fee is at risk, but if you fail to pay the borrowed money by the prescribed date, you will be charged a fee. The companies that lend to new clients without any charge and interest are more, we have chosen three for you, where you can be sure of a solid and fair deal:

Japanese loan

Japanese loan

In the case of the Japanese loan, this is not a brand new product, but a renaming and adjustment of the earlier Click Credit offer. Already before, Click Credit was one of the most advantageous non-bank loans, and it is doubly true after rebranding for a Japanese loan. It is a short-term non-bank loan that is completely free for new clients – you can borrow up to CZK 10,000 for the first time and if you repay it within 30 days, the fee will be returned and the loan will not cost you a crown. It should be noted, however, that even in the case of a repeated application, when the fees are already charged, the Japanese loan is very advantageous – the fee is only CZK 33 for each loaned thousand and extending the loan is very cheap.

The loan is on

The loan is on

A popular non-bank loan that is fast, easy and almost for everyone. For truloan you can borrow up to CZK 8,000 for the first time without any charge – you only need to be at least 18 years old, have a bank account and repay the loan on time, ie within one month at the latest. For other loan applications, you can get up to CZK 15,000, but there is no fee that is not low.

Loan Zaloan

Loan Zaloan

Zaloan is one of the best-known providers of fast loans. It has changed its offer in recent years and now offers the first free loan. However, it is only a loan of CZK 3,000 for a period of 30 days. All other loans are already charged, but regular customers can borrow higher amounts up to CZK 100,000. Also new in the Zaloan product range is Credit Limit – a financial reserve that can be used to fund up to CZK 25,000.

Loans to people from people, how does it actually work?

Just a few years ago, we only knew the classic bank and non-bank loans, or special types of special-purpose loans, such as mortgages, car loans, and so on. Denotes as P2P loans – where loans, people borrow each other.

The acronym P2P comes from English and is derived from the words person to person (or peer to peer) lending. But it is not a simple borrowing among strangers, where you would take unnecessary risk, whether as a person who lends money or vice versa as a lender. P2P loans are provided through a special internet platform, where both the borrowers and investors register. Part of the registration is also filling in a lot of information, so those who use this platform know what they are going to and thanks to the sophisticated system the risk is absolutely minimal.

For whom are P2P loans beneficial?

For whom are P2P loans beneficial?

There are a number of examples for whom P2P loans are a very convenient alternative to ordinary, standard loans. Compared to bank loans, P2P loans offer lower interest rates and the client can save a very interesting amount. For those who want to invest money, they are a great new way to value your money and gain an interesting experience. In addition, P2P loans are also suitable for those who can afford to invest a minimum of money – the minimum amounts are very low, if you want, just a few hundred

P2P loans as an option to profitably borrow money

P2P loans as an option to profitably borrow money

P2P loans are a great way to get credit on better terms than a bank. If you meet demanding banking requirements, but it seems to you that the bank charges too much interest, try signing up with some of the P2P loan companies and maybe you’ll be pleasantly surprised. You can also borrow higher amounts (up to hundreds of thousands), under very favorable conditions.

P2P loans as an interesting investment opportunity

P2P loans as an interesting investment opportunity

P2P loans are particularly interesting for retail investors who would like to appreciate their money, and in this way they can help many people. The investor can choose for which loan to give his money and can choose the interest himself. Moreover, everything is very easy, intuitive and lending takes place via the Internet interface without having to go anywhere. Some platforms can be invested from as little as CZK 200.

P2P loans that can be used to refinance

P2P loans that can be used to refinance

Some P2P borrowing companies now also offer the opportunity to use this platform to refinance existing loans. These include, for example, Heposei, where it is possible to transfer both the current loan and consolidation, or to merge multiple loans into one.

Who can get such a loan?

Who can get such a loan?

In general, P2P loans are more stringent than, for example, fast non-bank loans. Mostly it is necessary to have provable income, the applicant should also not be in the execution and, of course, even in insolvency. The registry entry may or may not be an obstacle, depending on the context and other information. However, every company that mediates these loans has a different set of conditions. What they all have in common, however, is the minimum age of 18, as with classic loans.

Leading providers of P2P loans in the Czech Republic

Leading providers of P2P loans in the Czech Republic

Probably the best known website with P2P loans is Heposei, other large platforms in this category. The most recent projects worth mentioning include the Yellow Melon. In addition to this, many others are also active on the Czech market, and this type of credit has become increasingly popular lately.

Beware of loans with a fee in advance

Usually, we choose different factors to choose the right loan – most often people decide for example by interest rate, fees, annual percentage rate of charge (APR), maximum loan amount or possible total repayment period. While there is no major risk in the banking sector, and clients certainly do not have to be afraid of any fraud, it is necessary to be very careful with the non-bank loans – many of the credit offers are fraudulent and are mostly prepaid loans.

Typical fraudulent loans

Typical fraudulent loans

Pre-paid loans are probably the most typical example of a fraudulent loan. Usually, people advertise them, for example, on the Internet in various discussion forums or discussions under the articles, they also appear out-of-the-box in the street or on notice boards in stores, you can also get them to the mailbox and are often published in different newspapers or other printed materials. These loans are often characterized by the fact that they do not include any company name or website, but only the phone number or email address is included in the contact details. Then, the person who advertises the loan will want to pay you – whether in a personal meeting or by phone – to pay a fee before you grant a loan, usually saying that you have already approved the loan. However, such a fee is often quite high (sometimes in the order of several thousand) and after you pay it, the person in question either stops communicating with you or tells you that the application has been rejected. In the end, you will not even have the promised loan or money you paid for it in good faith.

The crown fee does not matter in advance

The crown fee does not matter in advance

There is only one exception where the advance fee is no problem and you can pay for it without any worries. These are loans offered on secure and trusted websites and from reliable credit companies. This is a so-called verification fee, the only purpose of which is to verify that the bank account is actually written to you (many companies have a bank account as one of the essential requirements). The fee is usually a symbolic one crown, so even if the loan is not approved you have nothing to lose.

Other examples of fraudulent loans

Other examples of fraudulent loans

So far, we’ve only been talking about prepay loans, but there are other kinds of fraudulent loans that you should watch out for and avoid. Another example of this is loans, where you first need to call a pay line. Mostly they are highly overpriced paid numbers, where a minute of talk can cost up to 90 CZK. This is a problem in itself, notwithstanding the fact that the operator on the other hand deliberately extends the call as much as possible in order to earn as much money as possible. But the worst thing is that you will never get any loan anyway and the only result will be a high phone bill (or a flash credit).

How to avoid fraudulent loans?

How to avoid fraudulent loans?

Of course, the basic advice is never to take high-fee loans in advance (no matter how promised you will get the loan) and not to make a phone call to arrange the loan, but to settle it over the Internet, or at the credit company’s branch. However, if you really want to make sure that you have chosen a trusted and reliable lender, we recommend using one of the graders that only includes secure loans you can rely on.