Paydayloanskentucky.org – People say that looking for a payday loan 0 interest in Nigeria is like waiting for a pig to fly. Interest rates are the main source of profit for a lending company. Zero interest means zero profit.
However, it’s understandable that people still seek it out. It’s, after all, very cheap and probably the only thing people can afford.
In spite of that, contrary to what some people believe, there are actually some possibilities for a loan with a 0% interest rate. In this article, we’ll explain it for you.
What is Payday Loan? What are the Differences with Other Loan?
Put it simply, we can define a payday loan with its sky-high interest rate. They operate with modern devices such as mobile phones, smartphones’ apps, and websites. Compared to a more conventional lender like a bank, borrowing money from a payday loan platform will not require you to:
- Prepare a lot of documentation.
- Wait for days to get the money you need.
- Use collateral as a backup.
Your chance of getting a rejection is also low. However, there are certainly some drawbacks. First, it surely has a very high interest rate. That’s why some people are desperate enough to look for a payday loan 0 interest rate. In several cases, the interest rate can be as high as 2,000%.
Second, a payday loan usually charges a lot of fees. This includes fees for late payments. Some people claim that they have to pay additional money equal to the loan amount simply because they cannot pay it on time.
Payday Loan 0 Interest: Is It Possible?
Though it is difficult to find, there are some options for obtaining a loan with no interest. However, these options usually have some disadvantages that we should be aware of.
First, there are the high fees and membership. Some apps will allow you to take loans without any interest rate at all, but you have to pay for the expensive fees and membership.
Markup pricing. Some apps allow you to take out a loan to borrow their products with 0% interest. But the products’ prices are already marked up.
It’s very limited. You can’t use the money as you like.
There are actually several legit loan apps that will allow you to obtain money with zero interest. But they usually target a very specific demographic.
Apps for Payday Loan 0 Interest in Nigeria
Here are two loan apps that you could use to avoid paying interest.
1. Carbon 0% (Carbon Zero)
Carbon Zero is basically a specific Carbon program. It’s only available for Carbon customers with a minimum salary of ₦200,000 per month. Carbon Zero is also limited to buying electronic products from specific vendors. You can’t buy food or pay tuition with it.
2. Taka Loan
Taka Loan is another loan that does not require an interest rate. They also won’t charge you any fees. However, there’s a commission of 6% you have to anticipate. A late payment will result in your account being blocked. These days, repayment is getting more expensive because the Taka performs very poorly against the dollar.
|Carbon 0%||Only to buy electronic products from specific vendors.|
|Taka||Commission at 6%
Blocked account for late payment
Alternatives for Payday Loan 0 Interest in Nigeria
As explained previously, a payday loan without an interest rate usually comes with disadvantages. People still have to pay the expensive fees and face limitations. These loans can still be beneficial, but some people might find them to be a trap.
Those who don’t want to take such a loan can consider other options. There are actually some alternatives to looking for a 0% interest payday loan.
Low Interest Loans for Bad Credit
The first option to choose other than a payday loan 0 interest is a low-interest loan. Low interest rates are still costly compared to a zero interest rate. But as long as they don’t charge hidden additional fees, they can be anyone’s solution to getting a cheaper alternative.
But how much is considered a cheap interest rate? In general, payday loans usually have a 400% annual interest rate. So, a 100% payday loan can be considered “cheap.” Though it would be prudent to conduct your own research by comparing the interest rates of all the lending companies you are familiar with. Choose the one that has the lowest interest rate and the cheapest fees.
On the other hand, banks usually charge 12.2% interest rate per annum. So, a lower than 12.2% interest can be considered cheap.
Government Interest-Free Loans
The other alternative for a payday loan 0 interest is to request for a government funding. In Nigeria, there is actually government funding to help people’s businesses, including:
- Micro-to-Medium Enterprises Fund
- Agricultural Fund
These funds don’t have a zero interest rate. But they are way cheaper than obtaining a loan from a private institution such as a bank.
The Micro to Medium Enterprises Fund, for example, has only a 9% interest rate per annum. While the Agricultural Fund, such as the Agricultural Credit Support Scheme, has an even lower interest rate at 8% annually.
|Alternatives||Institutions||Low Interest Rate per Annum
|Low Interest Rate Payday Loan||Payday Loan Companies|
|Lower than 100%|
|Bank Loan||Banks||Lower than 12.2%|
|Government Funding||Government Institution like |
Central Bank of Nigeria
|Lower than 12.2%|
In general, a payday loan 0 interest rate is like a dream for all. It’s possible to get one in Nigeria. But, you will have to pay for the fees, membership, and others. There are other alternatives, such as government funding and a low-interest loan.