Can you borrow money for free?

Sometimes you may find lenders online that offer you free loans. However, there are relatively small loan amounts you can borrow. The idea is that you can borrow money for free the first time you apply for a loan from a given lender. But how can this lend itself to a lender and what are the disadvantages of taking out a free loan for you?

As is well known, it is often the case that if something sounds too good to be true, that is exactly what is the case. What the lender hopes for is that you will come back and borrow more money the next time you need money. And that’s exactly what the lender is making money from.

Tough competition in the loan market

In today’s loan market, competition is fierce and for that reason it is important for lenders to offer their customers something special. If lenders, by offering free loans, have the opportunity to create a good relationship with their prospects for the first time, while ensuring they get loyal customers coming back, it’s a simple matter for lenders to give you a Small but free loans.

Although you may not need to borrow much money, you have easy and quick access to more funds. If you then need more money at the end of the month, it may be tempting to take out a new consumer loan from the same lender. The only problem with this is that it can quickly become a costly habit to constantly return and borrow more money than just take out the first loan you got for free.

Free loan offer in general

We would therefore recommend you to be very careful about taking out a “free loan”. Check what the price will be the next time you are considering borrowing money for a free loan. That way, you know in advance how high the monthly repayments will be and whether you can afford to pay the loan properly.

In all likelihood, the price of the next loan, measured as a percentage of annual costs, will be extremely high because you borrow a smaller amount with a short maturity. You also have to pay a flat fee every time you want to take out a loan like this.

That being said, a free loan can be a good option, given that you know yourself well enough to know that it is only with this one free loan and that you will not be tempted to return and borrow more money. Of course, this is something you know best yourself, but now you have at least got an insight into the disadvantages that may lie behind a free loan.

Therefore, check in advance what the total price of the loan will be for you, and consider going for other loan options the next time you need to borrow money.

No obligation to apply for a loan

However, applying for a loan is completely non-binding and free of charge and you can easily compare loans here on our website. You just click through to the different lenders on our list.

Of course, if your washing machine or TV needs to be replaced, you will of course check where the best deals are available before deciding where it is best to go. You should do the same when it comes to taking out a loan. Here  you can easily take a quick and non-committal comparison of loans, then you can pick out some alternatives that seem promising, and then apply to receive offers from lenders that will provide you with an offer tailored to you and your needs. Are you still considering taking out a so-called free loan, we recommend you to compare the prices of small loans and credit cards that you can find here on our website.

Find the right loan for your personal situation

Then we hope with this that you have a slightly better overview of the alternatives available to borrow money online and wish you good luck in the search for the best loan for you!