No major lenders offer 0% APR personal loans. A personal loan is a type of loan that allows the borrower to do whatever they wish with the funds. Personal loan interest rates range from 6% to 36%, for the most part.
However, there are places that offer loans with 0% APRs for a specific purpose rather than for anything the borrower wants. Stores may offer 0% financing on certain items; medical providers sometimes offer 0% loans for procedures; and car dealers can have interest-free promotions. But many of these options use a system of “deferred interest.” If you don’t pay off what you owe in full by the end of the promotional period, you owe interest on the entire purchase amount as if it had accrued from the day you made the purchase.
The closest thing you’ll find to a 0% APR personal loan is a 0% APR credit card. You’ll be able to make purchases anywhere credit cards are accepted, and you won’t have to pay interest for a certain number of months.
Places that offer loans with 0% APRs:
Stores: Various retailers may offer 0% APR financing for specific products. For example, you might buy an appliance and have 0% interest for a year. However, this is often not true 0% financing. Most stores use a system of “deferred interest.”
Credit card companies: Many credit cards have introductory 0% APR periods. These can range from 6 to 24 months. For the majority of 0% APR credit cards, you’ll only owe interest on any balance that’s left at the end of the promotional period. However, some store credit cards use deferred interest.
Medical providers: Some medical providers may offer 0% APR loans to pay for certain healthcare expenses. It doesn’t hurt to ask about financing options if you have an expensive procedure coming up. The interest may be deferred, however.
Car dealers: A car dealership might use a 0% car loan as a sales promotion. However, you may have to pay off the loan more quickly than normal, with higher monthly payments. Or, a higher rate may kick in after a while. So it might not be that much cheaper in the long run. In addition, you likely won’t qualify without excellent credit.
While you can find plenty of places that offer 0% financing on certain purchases, you won’t be able to get a 0% APR personal loan that you can use for anything. The only exception is if you have a family member or friend who is willing to give you cash and not charge any interest. If this is the case, make sure to draw up a written agreement including required monthly payments and penalties for not paying on time.
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