Can you really get a 0% interest rate for a loan? 

A 0% interest loan means you are only going to pay the principal amount that you borrowed from the lender with zero interest. 

However, it doesn’t mean that you’re not going to pay any fees on top of the principal amount that you applied for a loan. There are additional fees that you need to check before signing that agreement or before getting that dream car of yours. 

There is no such thing as an interest-free personal loan. But there are loan creditors who do offer a 0.98% interest rate for a loan

So what does it really mean in the deeper sense of things?

Usually, this type of loan has a deferred interest. Deferred interest comes in when you make a late payment or you weren’t able to pay your balance within a specific timeframe. There will be charged interest when that happens.

When the above things mentioned are all true, you can also check the following list of loans which is a good example of 0% interest rate loan. Please remember that these types of loans are only applicable to small-medium size loans only. 

Furniture and electronics retailers

The most common place where you can find no-interest loan offers is when you’re purchasing household items such as television, refrigerator, washing machine, living room set, bedroom set, or even microwave ovens. 

There are other instances that mobile phones are in this category, too. 

These are usually on promotional offers when you see them. So once you miss a payment during the loan contract, you’ll have to pay an interest rate that is usually higher than the normal interest rate. 

Car dealers

Some car dealers offer a 0% interest rate on auto to buyers but on a case-to-case basis. Most of the time, those buyers who got an excellent credit score receive this offer. This is a way for them to get people buying from them again. 

But be careful dealing with this type of loan from car dealers. This could also mean that you’ll miss other incentives that they are giving to ‘normal’ customers.

Since you opted in on the no-interest loan, your monthly payment would be a little higher than the usual. This also shows that there’s no actual difference because you’re just paying the same without the interest. 

Healthcare providers

You can also get no-interest loans for your medical expenses in case of an emergency that you don’t have a fund ready for hospitalization. More often than not, these types of lenders require your medical provider to join their program so they can grant your loan. 

They usually promise to remain interest-free in the duration of your loan but like any other lenders, there are also exceptions when you can’t pay your bill on time, a specific interest rate will charge on your bill. 

Logically, an interest-free loan is not totally interest-free when you look at it on a deeper level of understanding. Here is the reason why:

  • Zero-interest loan is associated with impulsive buying

Zero-interest loan is associated with impulsive buying

Why is it associated with impulsive buying?

Because we buy stuff or things we do not really need just because there’s no interest rate applied. 

Car dealers promote this offer everywhere they can. It is tempting for buyers to buy even if it’s impractical due to the “huge promise” that there will be no interest rate applied. So even if they do not need a new car at the moment, they will buy – resulting to a more serious problem – which is having a car but won’t be able to drive it long enough since you still have another one that’s working just fine. 

It’s like buying a milk bottle for a toddler who knows how to drink in a normal glass just because it’s cute and it’s on sale. The toddler won’t use the milk bottle the same as the buyer won’t use the new car because he’s living alone and he just needs one car to drive to his office. 


It is true that you can get a 0% interest rate loan but we advise you only get it if you really need it and you can pay your balance on time. If not, it would become more of a burden than not. For more blogs about loans and how you can get started, click here.