Buying in installments without paying interest is possible with those that are grouped together under the heading of zero interest loans. It is a type of loan that must be carefully evaluated to see if it is a “real” zero rate or an implicit zero rate.
What do you need to know?
When a bank or a financial company proposes a zero-rate loan, it certainly refers to the Nominal Annual Rate or the Tan. When the Tan is equal to 0% we are certainly faced with an interest-free or “implicit” loan. However, for this to be a real zero-rate loan, the Taeg must also be zero. It is in fact the global rate which also takes into consideration ancillary costs such as preliminary investigation, practical management and collection of installments.
The optimal condition is logically obtained with a real rate equal to 0%, but this can only be found in the field of targeted loans or some loans granted as state or regional incentives for starting entrepreneurial activities for the benefit of certain categories (such as young men and women).
Loans aimed really at rate 0
This category includes formulas which are often the result of special agreements between large chain stores and important financial companies such Lite Lender Company which have a high know-how and presence in consumer credit. These are loans that become accessible respecting some limits that are related:
- to a minimum and maximum amount that can be financed;
- the type of products that can be purchased with these types of financing;
- membership and request during a promotional period;
- at a limited and pre-established number of installments (generally 10, 20, 24, etc.).
How to request them?
To obtain these forms of financing, which really offer savings in payment by installments, you must contact the staff in charge in the store or follow the online procedures (logically when it comes to chains or shops also equipped with e-commerce). In both cases, the acceptance of the loan conditions the possibility of being able to take home or receive the product purchased with the installment formula.
On the other hand, it is rather difficult to find a zero rate loan for “real” cars. In fact, these are often loan formulas that have a Taeg of a few percentage points. However, this guarantees savings that can be considerable compared to purchasing with other ‘non-subsidized’ financing formulas.
Difference between Pagodil and zero rate loans
Finally we find a reality that can represent a valid alternative to the classic 0-rate loans such as Pagodil. Technically this is not a real finalized loan, but a deferred payment concession at a rate of zero.
We speak of very different types both for response times and for the request method.
In fact, the request for a ‘classic’ loan requires an income that can be demonstrated through income documentation (paycheck, Single Model, etc.). The approval times may vary from a few tens of minutes up to a few hours or a few days (if you proceed online and recognition via bank transfer is sometimes necessary).
The use of Pagodil does not require the presentation of profitable documents. You only need a checking account and an ATM (or checks) to use to start the procedure. The response arrives in a few minutes and is given via Pos and sms on your mobile device. If the extension is granted automatically after accepting it with a signature on the receipt of the Pos.
Interest-free incentives for women and young people
In 2018, various formulas were re-proposed that young people, those over 50 and women (as privileged categories) can use to finance their own business at zero rate. The percentages and expenses that can be financed are indicated in the regulations which provide for the request and concession procedures, as well as the type of activity in which it is decided to test the entrepreneurial capacity.
For information, it is preferable to refer to the Invitalia website and evaluate whether there are also regional proposals. For example, on Invitalia (as of May 10, 2018), in the section and in the “We create new companies” project, a loan is expected to cover 75% of expenses up to 1.5 million euros, called New Zero Rate Companies. It is interesting to note that applications can be made online using the Invitalia platform. This is not the only initiative with the “zero rate” nature, among which we also mention.