Interest-free personal loan is something that doesn’t exist. Nevertheless, there are other ways in which money can be borrowed without payment of any sort of interest. There is a multitude of interest-free loans available in the market making the borrowing process easier and cheaper, of course.
Such loans are designed to bring the finances back into control. There are many budgeting loan contacts and other ways in which such loans can be accessed. Here are some of the ways in which an individual can get their hands on such loans.
Interest-free overdraft
It is one of the reliable and interest-free loans that is provided by a number of banks. The amount that can be borrowed depends on the account chosen and personal circumstances, but generally, small amounts can be borrowed. Nationwide is one of the institutions offering overdraft up to GBP 1,200 which charges no interest for the initial 12 months. However, there are some requirements in order to qualify for these benefits. It also depends on the account for how long the cash will remain interest-free.
0% new purchase credit card
This is a recommendable option for moderate debts. Take out a credit card that provides 0% interest on new purchases. Before application, credit card does indicate what the maximum limit of the card is. The limit offered is pretty much low and also depends on the personal circumstances. The duration for how long the money will remain interest-free depends on the credit card. For instance, MBNA offers an interest-free period of about 30 months. However, it is important to consider that you will be charged for high amounts of interest once the deal gets over.
0% balance transfer credit card
This is an ideal method to pay off the credit card debt. A credit card debt can be turned into an interest-free loan by transforming into a credit card providing 0% on balance transfers.
For this new card, there will be an automatic indication of what the maximum credit limit is before application. However, this will usually depend on credit rating and salary.
PayPal credit
This is an ideal method for those who want immediate access to credit. There is an online application and a credit limit is allocated to the account, usually within the same day. These can be used for online purchasers from retailers who accept this method of payment.
However, in order to make it interest-free, over GBP 150 needs to be spent in a single transaction. 4-months interest-free is granted in order to pay off the debt.
Generally, these are all short-term solutions. A low-rate credit card is a good solution for those who wants a long-term remedy. If you need to borrow a large sum of money, then one can apply for a low-rate personal loan as well.
Nevertheless, this is not an exhaustive list but are the best solutions if you want a loan that is entirely free of interest charge.
