At some point, a successful financial organization begins to feel that accumulated profits are growing, but it is “passive”, that is, these assets do not generate additional income. They also do not “work” on internal turnover, and in this case the company is looking for solutions for additional triggering.
Banks find this unacceptable because no financial organization can afford to sleep the same way and not grow, so lenders with high free assets choose the following: they offer free loans , or more precisely, free loans.
Free loans are free of conditions
Freedom of Lending or Credit Freedom can be interpreted differently by each bank, but the characteristic of this loan is that the creditor and the borrower individually determine the conditions under which mutually beneficial cooperation will take place. In addition, the bank, in turn, lends money by negotiating with the customer to make a higher profit, while the borrower in need of the money receives the funds on relatively advantageous terms .
Most often, free credit borrowers use it because of its simplicity of drawing up and receiving. Easily completing your application and dispensing money within half an hour, reviewing it on any bank card, will help you solve the lion’s court customer problem. In addition, this money is allowed to be returned after 3 days as well as after 3 years.
When looking at the goals of free credit, it can be said that it is an aimless, or more precisely, consumer credit. This is precisely the case when the borrower does not have to promise that the money will be spent on a particular purpose or worse, having to plan expenses in advance. The bank lends the amount of free money to the most unplanned needs, and is not interested in exactly where it will be spent .
Free credit features
It is hard to imagine that such a financial product exists because its terms give it the right to be called the most profitable, the cheapest and the most loyal:
1. The borrower shall not be obliged to pay the loan at monthly intervals, which may be agreed once a year, once throughout the repayment period or at the discretion of the parties.
This condition does not mean that the bank will issue you an interest-free amount, you simply will not be obliged to pay interest on a monthly basis.
2. There is no time limit for the refund.
Of course, the bank cannot give you money, but it can set a target repayment deadline, for example: you can return the full amount of free credit on the second day , but no later than 36 months after receiving the cash. Such a condition is particularly appreciated by small businesses in development or companies with seasonal business (most profits are made during certain months of the year, so refunds can only be made during this time, not monthly).
3. Free credit for legal entities.
Amounts of money on relatively loyal terms can be offered to corporate clients with whom they have been cooperating for a number of years. In this case, free credit may be used as collateral in a tender, but its repayment terms are individually negotiated with the borrower.
4. Credit Freedom to be transferred from one bank to another.
Such free loans can be transferred as assistance to a ‘colleague’ – the creditor, a practice practiced by subsidiaries in particular. Often, such loans have a refinancing function, that is, the borrower asks to cover his debt with one bank using the free credit of another financial company.
5. Free credit to the state. In times of economic turmoil, a country may withdraw part of its capital from its national banks in order to raise the economy, increase gold reserves, etc.
In any case, free credit in any category will be different from other products with more loyal repayment terms. Requirements for the borrower can “swim” in cases where the client has a long history of cooperation with the bank and has already obtained a good credit history.
The most common form of free credit
However, free credit has gained the widest and most widespread popularity among ordinary citizens, individuals. The product is often already offered to “own” bank customers who are 100% sure of the creditor. That is why free access cash can only be issued on presentation of a passport and without proof of regular income.
Those who use a particular bank’s online services can easily borrow an N-th amount using this method. You receive money by transferring money to your bank card. A loyalty point in this case can become a debt repayment maturity, for example, the bank allows you to return the money within 1-2 months without calculating the interest rate, in other words you simply borrow from the bank and return exactly the amount you borrowed. If you do not have the ability to repay the debt within the stated loyalty term, then the outstanding loan amount will be charged on a monthly basis.
Those who are not “tied” to a particular creditor can take advantage of the many banks that offer their services over the Internet. In this case, you cannot expect too loyal terms, but getting money by writing an application without guarantors and certificates is completely realistic. It will not take longer than 24 hours to process your application. But every customer must meet basic requirements:
- Must be a national.
- Must be between 18 and 65 years old.
- Must have a valid passport.
On the other hand, you will not need to provide collateral, you will not need guarantors, you will not need to collect references and other documents, you will not have to meet with your bank personally, and most importantly, you will not report on your goals.
Free credits have become an integral part of the cash life cycle of the country. Free funds, even for a small and deferred payment, are given to those who really need them or to those whom the creditor has no doubt. This way, the borrower solves his problems in a profitable and quick manner, but the creditor returns his money early or late, making a small profit.