Loan companies providing payday loans almost always place on the Shenon Morge home page, which are used to calculate the cost of the loan. When choosing the appropriate amount and date of repayment, the total cost of the loan along with APY ( real annual interest rate ) is obtained on an ongoing basis. Most often, there is also a nearby link to the ” information form “, which contains all the most important data on the current loan offer.
Analyzing the offers of many loan websites, it can be seen that in many of them, the total cost of the loan consists of a commission (which constitutes the vast majority of costs) and interest. Not every customer is aware of it, so the marketing message about a ” zero-interest loan ” may mislead it (the customer assumes that the loan is free).
By the way, it’s worth answering the question how is it really with this ” free loan “? Is it just a marketing slogan with a hidden hook or a real bargain?
Such a promotion does exist (currently, basically the majority of companies operating online) and means the possibility of giving only the amount borrowed (APY is equal to 0%). The repayment must be made within the set deadline – this is the only condition to take advantage of such a promotional campaign, which is only addressed to new customers borrowing in a given company for the first time.
What does NOT include the APY?
In a nutshell, the costs that are associated with the client’s delay. These include, for example, penalty interest or payment for prompts. Their maximum height is regulated by law, as are the standard costs of payday loans.
In conclusion, online lending offers are usually legible and do not contain “traps”. However, this does not mean that everyone on the non-banking market acts honestly and ethically – by signing a contract you should always be vigilant. If you are not sure about financial or formal conditions, please contact the company’s customer service office or opt out of the loan idea altogether.