In the early stages of this decade, the free term was something that was widely used by credit institutions and finance companies to attract customers. This was something that the consumer business and its lawyers did not like. They believed that they had broken good credit granting practices and were used to decent customers. Therefore, in early 2013, they had contacted companies in the industry, explaining that the word “free” should not be used in the case of small loans. A loan must be repaid and is therefore not free. Although the loans are offered without interest and fees. The consumer agency created the parable as a free subscription to a newspaper does not mean that the newspaper needs to be returned.
Instead of promoting their offer as a free SMS loan, many creditors have made adjustments, and now use terms such as free small loans, interest-free small loans and non-interest-free loans. Free SMS loans in the name are thus not common but small loans without fees and interest-ie. Interest-free and free-of-charge loans-do not exist to the same degree, if not greater.
If you go for courses and want to take out a loan, then these loans can be an excellent option. Since it is a small loan, which is a type of instant loan, it is not really a big deal. However, these lenders thus offer such loans completely free of charge and as long as you are informed of the terms and have ensured that they are actually completely interest – free and toll free, so it can be an excellent opportunity to take advantage. But, as with any other loan, it can be good to really assess one’s situation and apply oneself on their terms and that one can really afford to take out a loan. Although in these cases they are free, the loan amount is repayable. If this does not happen as agreed, then the loan can be both expensive and very problematic history. So these small loans are not, as the consumer agency has decided, completely free. A loan is not free because the amount is, by definition, borrowed, and is therefore expected to be repaid. But a loan can be free if it is clearly under contract.
So why are these free loans offered?
Well, today the market is full of lenders in the form of our traditional banks, credit institutions and finance companies. They all fight over customers and try to attract new customers to build a relationship and trust. The traditional big banks here usually have an advantage as most of us have some kind of relationship with a bank since we were smaller. However, these banks are not always the best option when it comes to loans. Today, the flood of loans are offered on the internet and via sms, and these can be incredibly easy and smooth to take. To attract new customers and make them discover these small loans which for many is something completely new, lenders offer people to test these for free.