Borrowing money can be quite pricey once you take into account all the fees and charges as well as interest rates. Generally, the bulk of the cost of borrowing will be the interest repayments so its clear to see that you could save a lot of money if you could get an interest free loan.
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Yes. But you need to fulfil the eligibility criteria to access an interest free personal loan. The No Interest Loan Scheme (NILS) exists to provide low-income earners with the opportunity to access personal loans at zero cost, to purchase essential household goods and services. The initiative is run by Good Shepherd and supported by the Australian Government so it's a very safe financing option. Applicants are not subjected to a credit check and eligible recipients can borrow up to $1,500 with the repayments being spaced over an affordable period of 12 to 18 months with no interest, fees or charges. There are strict guidelines as to what the money can be spent on and does not include things such as rent, food and bills.
To access interest free loans for low income earners, you need to meet the following requirements:
You can find more information at nils.com.au
There are a number of credit cards offering a 0% introductory rate on purchases. The interest-free period ranges up to 15 months which is effectively a 15-month interest-free loan. But be mindful of the interest-free term as a high-interest rate is applied to any unpaid portion after the interest-free period.
Most credit cards have an interest-free period of usually 44 or 55 days. This means, if you didn't have the adequate cash flow to purchase goods or services, you could pay with your credit card then pay it off when you have the funds available. You will avoid paying interest on the funds used providing you pay off the closing balance on or before the due date.
It's not uncommon to find interest-free deals when purchasing appliances, whitegoods and even holiday packages. These interest-free deals generally work in two ways:
It's very important to understand if your period repayments are enough to pay off the entire balance before the interest-free period ends, otherwise you could be hit with a huge amount of interest on the remaining balance at the end of the period. Be sure to take note of any fees and charges in the establishment or maintenance of the interest-free deal. Always read the terms and conditions before signing up to ensure that the deal suits your needs.
The store holds the product for you until you've fully paid it off with periodic instalments. Lay-by doesn't allow for you to take the product home before it's completely paid for but it's a good option to lock in a sale price when you don't have the cash to purchase the product outright. For example, you see a toaster has gone on sale. You need a new toaster and would love to take advantage of the sale but you don't have the funds to do so. You can put the toaster on lay-by for the sale price and pay it off in instalments. Once it's paid off, you get to take your toaster home.
There are a number of interest-free finance options to suit various needs, just be sure to read the fine print so you don't get caught out by any hidden fees and charges.