It is very different in life. Sometimes it happens that we have to quickly organize a large sum of money, and at the same time we do not want to borrow a large interest rate in loan companies or banks. Then there is the option of incurring a free commitment for zero percent, not only with friends and family, but also in the case of the first loans that are offered by selected financial entities. What is worth learning about an interest-free loan?
We borrow very willingly, but we are not willing to pay back
There is no need to convince anyone that the interest in various types of loans has increased in recent years. This turn of events is affected not only by the shorter waiting time for decisions, but also by the introduction of the so-called anti-usury act in 2016, which regulated the activities of companies granting loans, as well as introduced a legal order that protects the interests of customers. This amended act hit the dishonest lenders who offered loans in exchange for high costs.
Therefore, thanks to the changes, people began to gain confidence in non-bank loans. The research shows that every fourth citizen has a difficult financial situation and every tenth has no funds for the most important needs. At the same time, some of the people declare that their income is sufficient for their current needs. Despite this, the number of debtors has increased significantly over the past three years. In turn, 22 percent of respondents admit that they have a much worse situation than last year. Low earnings and higher living costs were mentioned as the most important reason for this situation. In contrast, 15 percent of compatriots openly emphasized that they have more money in their household budget, due to repayment of loans and credits.
Does the interest-free loan even exist?
What does law say regarding non-interest-bearing obliations? Pursuant to article 720 of the Civil Code, the loan does not have to bear interest. Consequently, the interest is due solely to the lender if it was provided for in the contract. Usually this type of liability is a paid form. Therefore, the benefits in the interest-free form are treated as the result of the customer receiving the so-called free benefit. This also applies if the loan was concluded privately by a natural person who does not run a business. Pursuant to Article 359 of the Civil Code, the maximum amount of capital interest in the case of an interest-bearing loan may be no more than 10 percent in a year. However, if the interest rate is based on a much higher rate, the maximum interest is also calculated. In turn, when the parties specify earlier in the contract that the liability will bear interest, but do not indicate the method of interest, only statutory interest will be due, which currently amounts to max. 5 percent in a year.