When we are looking for a loan, we are likely to be attracted by the promises of low costs and lighter conditions for the repayment of the sum received. If trying to save money is natural, we must not lower our guard.
If we hear about zero-rate payday loans we must first read the information carefully (yes, even the small parts written!): Often, in fact, when we talk about zero rate we mean that only the Tan is zero, that is, you do not pay interest on the loan during the payment of installments. The Taeg, however, which indicates the actual amount of what we have to repay, will certainly not be zero; this because it includes the costs of preliminary investigation and eventual incidental expenses, commissions and various taxes…
The most common zero-rate cases that we find among the proposals of the lenders therefore have a Tan equal to zero and a non-zero Taeg. In these cases, the sum that we will have to repay will still be lower than a loan in which each installment also includes a portion of interest.
On the other hand, if we speak of a real zero rate, that is, without additional costs for the borrower, both the Tan and the Taeg must be zero. The cases in which this occurs are very rare and usually linked to specific objectives (for example environmental savings) or certain categories (young people).
If we are evaluating an offer at Tan zero, we are careful to calculate well all the ancillary costs that will form the Taeg, to understand the actual cost that we will have to sustain and not find ourselves paying higher rates of our purchasing power, putting us to risk of over – indebtedness.