When you hear that a bank offers a commission-free loan, you start wondering where the catch is. The loan-free loan offer will seem tempting to many people and some bank offers are really profitable. It is difficult to decide which commission-free loan to choose in 2019 to choose the most advantageous.
What is the loan commission? This is a one-time fee that the bank will add to your commitment. It is expressed in percentage form and added to the amount of the commission granted.
What is a commission-free loan?
When looking for the right loan offer, you can often come across an incentive loan-free offer. The commission is added as the cost of obtaining the loan and depends on the bank’s policy. A commission-free loan sounds encouraging, as the customer can get a loan on favorable terms if the commission is low.
However, it is often the cheap marketing ploy used by banks and parabanks to attract customers. To compensate for the lack of commitment in the loan, banking institutions increase other costs associated with granting the obligation, such as interest rate, insurance obligation or high preparation fee.
Cash loan without commission – is it possible?
There are a large number of banks on the market offering a commission-free cash loan. We decided to present one of the most favorable loan-free offers. The banks’ offer including cash loans without commission 2019 is quite large and it is difficult to decide which of them is the most advantageous. It is worth checking in the bank’s regulations what the other costs for granting the loan look like.
It happens, however, that it is impossible to take advantage of the loan offer without commission. Often, the offer is addressed only to new customers or with the first loan. Obtaining a loan without a commission is often not available when we do not fit in the amount set by the bank.
No commission mortgage and early repayment
Pursuant to the Mortgage Act, banks providing mortgage loans with a variable interest rate may apply a commission for early repayment for a maximum of 3 years from the start of loan repayment.
This fee may amount to a maximum of 3.00% of the value of the repaid amount, however, it may not exceed the amount of interest accrued on the amount repaid during the year from the actual repayment.
A large part of the banks does not charge additional fees for the service, which is early repayment of a mortgage without a commission before the expiry of 3 years.
Are loans without commission profitable?
The vision of a commission-free cash loan seems like a good way to save money. Offers with a 0% commission usually have an APRC index that places them at the forefront in the ranking of the best loan proposals. However, it may happen that an increased margin or obligation to pay a preparation fee will result in a non-commissioned cash loan being unprofitable.
Banks rarely use a solution, which is a loan with no commission or interest, as this could result in too much loss of profits. The maximum amount of a cash loan without commission does not have to be high – the promotion may apply to loans of up to several thousand dollars.
Loan without commission – preparation fee as an additional cost
If you do not have to pay a commission, the loan preparation fee may be an additional cost. It covers all costs related to the preparation of the loan agreement, i.e. withdrawing money and transferring it to the client, as well as prior checking the creditworthiness.