0% credits for consumers
0% loans for consumers
The interest rate lull makes it possible: zero-percent loans for consumers.
To get a loan without interest was impossible in the past. Even every little child knew that the bank charges interest when you borrow money from it. From this money the bank lived and paid its employees.
Loans used to be
So whoever took out a loan had to pay decent interest in addition to the money he paid back to the bank in monthly installments over several years. Interest rates of 6 to 9 percent per year were not uncommon. The amount of this interest depended on the creditworthiness of the debtor, the amount of the loan, the repayment period and what the money should be spent on. For real estate loans or the purchase of a car, less interest was charged because the bank reserved an access to the property or the new car, if the debtor at some point could no longer service the loan.
Today the system does not work quite as described above. Banks have long ceased to live (solely) on the interest they collect on loans. They would much rather put other people’s money into speculative investments and earn a multiple of what they used to earn from the credit business. And if a deal goes wrong, the state will bail the bank out.
Zero percent loans
So it was not surprising that today there are actually zero-percent loans for consumers. Furniture stores or car dealers lure yes already for some time with such offers, now there is this cheap variant of fundraising also from the banks directly for consumers.
Such loans for 0% interest actually exist. However, the loan amount may not exceed the amount of 1.000 Euro not exceed, and in 36 months the money must be paid back. Hidden fees do not exist.
The borrowers can use the money completely freely in contrast to the offers of the car and furniture dealers. It is not tied to specific product.
Offered are the zero-percent credits at present bspw. From the Munich Fidor Bank and Santander Consumer Bank. That others with such credit offers will follow, is to be expected. At least if the general interest rate low of the central banks continues, and this is to be assumed.
Replace old credits
Even if 1.000 euros is not a huge sum, you can use this money at least partly to pay off old loans for which you still have to pay a lot of interest. This is how zero-percent loans actually save you money in the end.