Funding "without interest"


We can frequently find interest-free financing offers , but do we really know what it means?

When we decide to finance the purchase of a product or to apply for a credit, our bank may charge us interest, commissions and expenses

When we are offered interest-free financing, it means that the nominal interest rate (TIN) is zero, but not necessarily the rest of the costs aswell. In order to calculate the total cost of the financing operation, we must pay attention to the annual percentage rate (APR) described in the offer.

If the offer is free of interest, commissions and expenses, the APR would be 0%. However,  if we are charged with commissions and/or expenses, it’s value would then be positive.

For example, financing the purchase of a product that costs €250, free of interest, in 5 months with initial expenses of €5, would result in an APR of more than 8%.

Calculate it yourself with our simulatorAbre en ventana nueva.

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