How to Get Real Zero Rate Loans? Who Grants Them?
How to get real zero rate loans
Loans at zero rate represent a particular type of consumer credit and provide the possibility for the final consumer to purchase goods or services and pay the cost with a repayment plan in monthly installments. However, zero-rate loans are not necessarily real zero-rate loans.
What does it mean? Interest-free loans do not require that the principal granted be increased at the time of repayment by interest. However, costs are usually expected to be borne by the beneficiary. Expenses that can also be quite high, thus making financing less convenient.
What is consumer credit
As already mentioned, real zero rate loans fall into the category of consumer credit. This means that these are loans intended for families and individuals in order to allow them to purchase a specific asset or to pay in installments.
In any case, these are short-term loans, granted exclusively to support household consumption activities. It is therefore not possible to obtain real zero-rate loans to face long-term investments.
In Italy, only authorized banks and intermediaries can grant loans in the area of consumer credit. These loans can be disbursed both in the form of personal loans and targeted loans.
From a regulatory point of view, the granting of consumer credit is regulated by the Consumer Code, introduced with Legislative Decree no. 206/2005, which also defines consumer rights.
Difference between Tan zero and Taeg zero
When it comes to zero interest loans it is important to make clear the difference between Tan and Taeg. The Tan, or Nominal Annual Rate, is the value that indicates the pure interest rate applied to the loan.
The APR (Annual Global Effective Rate), on the other hand, summarizes the total cost of the loan, considering not only the rate (Tan), but also all the accessory and preliminary costs. For this reason the Taeg is also called a synthetic cost index.
When a loan is zero interest
When a loan is at zero interest, it is normally the Tan that is zeroed. However, getting a loan with Tan zero does not mean you don’t have to pay any fees. Although there is no interest rate for calculating the installment, the borrower will still have to face various expenses (commissions, preliminary costs, installment management, etc.).
If, on the other hand, the Taeg is also zero, it is possible to speak of loans with a zero interest rate. In this case, in fact, the beneficiary will be able to pay the sum in installments without incurring any kind of costs.
Loans with real zero rate are normally granted by authorized dealers in favor of customers who want to buy a product but do not have the necessary money available. In this case, therefore, it is the reseller who takes care of the costs applied to the loan by the lender who grants it.