Lowest interest loans and how to get them


Certain things certainly don’t pay off too much. These include choosing a suitable loan to save a lot of money, or vice versa, to spend unnecessarily high fees and interest. Bank and non-bank lenders today have a huge amount in the Czech Republic, and that is why low-interest loans can also be obtained. How to find such a loan and which one is the most advantageous in this respect?

Bank loans are better than non-bank loans

Bank loans are better than non-bank loans

In general, if you have the option, you should always prefer a bank loan to the non-bank. Banks lend only to those who are expected not to have a problem with proper repayment and do not provide credit risk to risky applicants. They have so much lower interest rates than non-bank companies, which, in turn, lend to most people and have to pay the risk that many people fail to repay the loan. Especially for long and high loans, it is wise to turn to banks first and only in case of failure to try your luck in the non-bank sector.

Interest is often more important for non-bank loans than APRC

Interest is often more important for non-bank loans than APRC

If you are not able to borrow from a bank, focus on the actual interest rate (usually per annum) for non-bank companies. Loans are also commonly referred to as the APR or annual percentage rate of charge, but it plays a more important role in long-term loans – if you take a monthly loan, for example, its amount is not so crucial. Rather, it is important to focus on specific charges and the total cost of the loan.

In the case of microloans, a non-bank loan can also be paid out

In the case of microloans, a non-bank loan can also be paid out

For the smallest loans in the order of several thousand, non-bank loans may be more favorable than bank loans. Thanks to the strong competition, many companies offer the first free loan with no interest or fees. In such a case, you will not pay an extra crown in early repayment, and it is logically impossible to get a more advantageous interest. But beware of a really timely payment – otherwise there are various sanctions that can make your loan considerably more expensive.

Independent graders are the best choice

Independent graders are the best choice

If you want to make sure that you have not chosen unnecessarily expensive credit, or simply do not know yourself in finance, we recommend using one of the internet graders to choose a loan. These independent sites focus on a detailed comparison of both bank and non-bank loans, and with their help, you can easily find a loan that meets your needs and at the same time has the lowest interest. In addition, you avoid the danger of fraudulent loans – comparative portals such as Pentoloan, ParadniPujcky.cz or the website you are currently on contain only thoroughly proven and reliable providers where you are not at risk.

How to apply for the lowest interest loan?

How to apply for the lowest interest loan?

After you choose your loan, you will be asked to complete a non-binding request. You can bring it from the comfort of your home without going to a bank or a credit company branch. After filling in, the lender will then contact you. In most cases, the request can also be made by phone (sometimes it is a free line, other times a normal tariff), for some companies also by mail. You can file a personal loan application at any bank, but it is usually not possible for non-bank companies.

As far as the required documents and documents are concerned, you will almost always need a personal ID card, sometimes a second ID card, for example, a receipt for income, a bank statement or a document confirming the address of your residence are required for higher loans. However, each provider has a slightly different set of requirements, so study them in advance to avoid wasting your time by filling out loan applications you can’t get.

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