What is the loan commission?
One of the most important criteria for choosing a cash loan is its cost. It depends on him how much we pay the lender for the service. So it is obvious that the lower it is, the cheaper it will be, and therefore more profitable.
The cost of a loan or credit consists of many elements – these are primarily interest, but also various additional fees, which constitute an additional profit for the lender. For non-bank products, the non- interest cost is usually the commission for granting the loan, and in some cases also the preparation fee.
According to the general definition, commission on a loan is a form of remuneration for the lender for providing a service related to its provision. Its amount is most often calculated as a percentage of the value of the borrowed amount.
Regardless of whether you are applying for a small online payday loan or a larger installment loan, before entering into a contract the lender should provide you with a detailed list of all costs associated with incurring a commitment. They are usually presented in so-called Information Form – you will find in it, among others total repayment amount, APRC and the amount of interest and commission expressed in amounts.
No commission loan – what offer is this?
Knowing the cost of loans, it’s easy to guess what a loan with no commission means. This is an offer in which the lender does not charge a commission for providing the service. Therefore, interest and other charges, e.g. preparation fees, are added to the amount of the liability.
Despite this, the lack of commission alone reduces the cost of borrowing. In the case of non-bank products, the difference can be significant, depending on the amount of the commitment made, thanks to this promotion, you can save from tens to even several thousand USD.
A commission-free loan is a promotional offer that is most often targeted at new clients. This means that you can only count on the discount when you make a commitment for the first time in a given company offering such a promotion.
Many non-bank companies also offer other interesting promotions that allow you to save on costs related to incurring liabilities. The most popular ones are payday loans for free, for which no money borrowing fees are charged. By using such a product, you do not have to pay not only commission, but also interest and any other fees. In a word, you give back exactly the same amount that was loaned to you.
How to get the first loan without a commission?
You can take advantage of the promotion to reduce your liability costs at many non-bank companies, as well as at some banks. How to find such an offer, we will tell you in the following paragraphs. It is worth mentioning, however, that it can be searched on the Internet, and it is proposed by institutions specializing primarily in providing instant payday loans.
In most cases, as part of this promotion, the first loan is offered without commission, i.e. for new customers of a given company who want to take advantage of its offer for the first time.
To enlist it, it’s usually enough to complete some simple formalities, such as:
- Submission of a loan application.
To do this, you must complete the form, providing personal and address details, as well as information on income, bank account and financial situation. When submitting an online application, an essential element of this stage is also confirming your identity – for example, a verification transfer.
- Choice of the amount of the liability and its repayment period.
In the case of a quick payday loan, the maximum refund period is 30 days. In turn, repayment of an installment loan can usually be spread over a period of 3 to 48 months.
- Familiarization with the terms of the contract and the cost of crediting – in the field regarding commission should be entered the value of 0 USD.
- Expressing the necessary consents to the processing of personal data.
- Receipt of a credit decision – companies operating via the Internet usually forward it via SMS or email.
Who is the loan with no commission for?
As we have already mentioned, only new clients of an institution can benefit from the promotion of a commission-free loan. This is not a big limitation, because such offers quite often appear at different lenders. All you have to do is choose a company where you haven’t incurred a commitment before.
Remember, however, that each institution grants loans only to people who meet certain conditions. So you have a chance for a loan without a commission if:
- you are the right age – depending on the company, the minimum age may be 18 or more,
- you have a valid ID card,
- you have your own bank account,
- you can indicate a permanent home address in Poland,
- you regularly receive income enabling repayment of liabilities, e.g. under an employment contract, retirement pension, disability pension, etc.,
- you are reliable in terms of timely settlement of obligations – the lender can (but does not have to) check it in the Credit Information Bureau and BIG debtors’ registers.
In the case of online application, it is also necessary to have a mobile phone, e-mail address and a device with Internet access. Although most lenders require information on the amount and source of income, it is very rare to provide documents that confirm it.
Loan offers without commission – where to look for them?
If you want to borrow money without paying a commission, you can easily find promotional loan offers both in banks and non-bank companies. However, loan institutions have the advantage over banks that they provide services without using complicated formalities and complicated procedures.
In case you are interested in a quick, commission-free loan that can be obtained without filling out a stack of forms and providing multiple documents, look through the offers of loan institutions. You can do it online, e.g. using the free payday rankings. You can also go to a broker who will help you find the best offer tailored to your needs.
Loans with no commission online – is it possible?
Non-bank companies and banks are trying to go with the times and maximally facilitate their clients using financial services. That is why a loan without a commission via the Internet is available today in many institutions. It consists in the fact that you can take it online without leaving your home – all you need is a computer, tablet or smartphone with internet access.
The advantage of this product are simple formalities, as well as a very short waiting time for funds – usually you can have borrowed money on your bank account within an hour of submitting the application. A convenient online loan to your account allows you to quickly obtain additional funds, and thanks to the promotional terms you can save on the costs of contracting.
Remember, however, that the total cost of the loan consists of several additional elements. Before using the promotion, compare as many offers as possible, paying attention to interest rates and additional fees. This will guarantee that you will borrow funds on really favorable terms.