Loan interest rates have been very low for some time, so it is really worth borrowing the money at the moment. Various credit providers are waging a battle for the lowest interest rates. But some go even further: they offer negative interest loans. That means you take out a loan and pay back less than borrowed. Is it really a great deal with nothing to lose?

For whom a negative interest loan is worthwhile

For whom a negative interest loan is worthwhile

Such a loan is really worth it – but only for a certain category of people. It pays off for those who need a loan of 1,000 USD and don’t want to borrow any more in the near future.

For example, borrowers have an advantage if they want to clear an overdrafted account – overdrafting is expensive, and here it is practically possible to settle it without paying interest. For such borrowers, it is really a worthwhile business, it is relatively easy to get the above amount and pay back less. The providers smava and Creditorm initially run such offers until the end of March 2018.

But if you need a larger sum or are planning to take out another loan soon, you should be careful.

For whom a negative interest loan is NOT worthwhile

For whom a negative interest loan is NOT worthwhile

Currently, you can only apply for a negative interest loan up to a maximum of USD 1,000. If you need more, this loan offer will not help. If you want to take out several loans, be careful – every loan request is saved at Schufa. If you take out a negative interest loan, it has an effect on the Schufa score and on other loans. So it can happen that the next loan is much more expensive. The request for a loan alone is saved at Schufa. In this respect, careful weighing with pros and cons is very advisable.

Are banks really giving money away?

Are banks really giving money away?

If you are wondering whether it is worthwhile for credit providers to give away the money, you should be aware that it will hardly be the case. Obviously, the providers do not earn from such offers, but the business is certainly worthwhile. So on the one hand it is good advertising – there are hardly any financial portals that have not written about it.

We are now one of them. On the other hand, there are many prospects for credit. And even if not everyone ends up using this offer and taking out a negative interest loan, enough people have learned about the providers and may have taken advantage of another offer. In simple words: it is also a marketing strategy. And it is definitely worth it for the providers.

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