How beneficial is an interest-free loan
Most of the fast loans in Latvia offer the first loan free of charge. However, how beneficial or unfavorable is an interest-free loan if it is repaid later with an extension of the repayment term?
Example: $ 100 interest-free loan and 2x loan extension extension:
- credit amount: 100 €, credit fee: 0.00 €, registration fee: 0.01 €, credit term: 30 days, overpayment: 0.01 € ;
- 30 days repayment extension: 10 €, overpayment: 10.01 € ;
- extending the repayment period for another 30 days: 10 €, total overpayment: 20.01 € .
Outcome: Interest-Free Loan
As much as the borrowed one, the repayment is advantageous on the condition that the loan is made up to 30 or 45 days offered by the respective lender if the customer borrows for the first time and does not extend the repayment term. Each time you extend the repayment term, the cost of the loan increases. However, there is a possibility of borrowing with the next lender.
It has been previously reported that interest-free loans in Latvia can be borrowed up to 300 euros with a repayment term of up to 30 days *. To apply for credit you need a computer with internet connection, active mobile phone and bank account. At present, banks offer students various types of loans to cover tuition fees, to cover urgent needs, or simply to help them get started successfully.
Some lenders offer a repayment term of up to 45 days
You can find the exact details on the lender’s website. Some lenders give their students a first loan free of charge, which means you won’t have to pay high credit, but keep in mind that fast loans are usually short-term loans, so you should think carefully about whether you can repay a cash loan in such a short period of time. If you wish to repay early, you will not have to pay penalty interest. Find more information on the lender’s website.