Are there any interest-free loans?

Loans and interest: how they work.

Customers who apply for a loan assume they will have to pay some costs or interest to obtain this type of financing. This is the way bank financing usually works. However, nowadays there are many different types of loans with a range of different conditions, including whether or not any interest is charged.

Customers looking for a loan must consider what type of loan they want and whether or not it is subject to any fees or interest. BBVA has a wide range of financing options involving different levels of interest, some of which charge no interest at all. BBVA's range of consumer loans are as follows:

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Loans with subsidized or reduced financing

What interest-free financing options does BBVA offer? This question can only be answered if you know what interest rates and costs each loan is subject to. Therefore, you should make sure you know what the terms APR and NIR mean.

Essentially, the nominal interest rate, or NIR, is the amount the bank charges to lend you money. However, you can't compare loans or make a decision using this figure alone, and it does not include the fees or costs a loan may be subject to. Furthermore, there are no time restrictions on the NIR, which means that the resulting figure does not take into account the time agreed with the bank to repay the loan. For these and other reasons, you must also know what the annual percentage rate (APR) is.

You can use the APR to find out what the effective cost of a loan will be, including the repayment period, engagement terms and all the associated fees and costs the applicant must pay. This is why some of the BBVA financing models mentioned earlier, such as personal loans, car loans and pre-approved loans, have approximate NIR values of between 6 and 7 points and APR values of between 7 and 8 points. However, they are also available with reductions and subsidies, which might not necessarily eliminate interest entirely, but which will eradicate assessment fees or cut interest (proportionally) depending on the agreed repayment term and amount applied for.

Are there actually any loans with no interest at all?

BBVA does offer these types of loans. However, interest-free solutions are only available to finance bills or obtain an advance on a paycheck. These financing products and loans are interest free; however, they do not have 0% APR as they may include a fee.

Advance salary without interests: Still haven't received your paycheck yet? BBVA can advance you the money interest-free for a commitment fee of 1.5%. You must repay the advance within a period of three to six months and the maximum amount you can obtain is Euros 3,000, or the equivalent of three paychecks.

Tuition and Master's Degree: BBVA wants to help you continue with your education and can offer you financing to help you fund your studies with no nominal interest rate (NIR of 0%). Up to €60,000 with a repayment term of nine months. This financing is subject to a 3% commitment fee and a 0.50% assessment charge.

For a master's degree, the maximum amount of financing rises to €75,000, which can be repaid over a period of up to ten years. There is an interest only period for the first 24 months. For the first six months, interest will be equivalent to EURIBOR +0%, which will increase to EURIBOR +6% once this period ends.

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Are you still not sure how much a BBVA will cost you?

Both the calculator and the loan comparison tool are available on the BBVA website. Whether you need a personal loan to buy a car or pay for your studies, these calculators will help you to discover the best way to obtain the money you need. It doesn't matter if you're already a BBVA customer or not, you can still find out the financing conditions, interest rate and repayment terms of the financing option that best suits you. Try the tools with whatever combinations you want to discover the benefits of financing your projects with BBVA.
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