Loan with negative interest rates – how does it work?

It actually sounds too good to be true: you borrow more money from a bank than you have to pay back. Can such an offer be serious? Or does the borrower end up paying – after all, a bank doesn’t give away money? Overview of negative interest rate loans.


What is actually offered there?

loan interest

The advertising message is clearly understandable: You borrow 1000 dollars at -0.4% effective APR – as for example with SmartPocket. After 24 months, 995.84 dollars will be repaid, which corresponds to a monthly rate of 41.51 dollars. There are no additional costs, residual debt insurance is not offered, early full or partial repayment is possible at any time free of charge. The loan is not earmarked.


The conditions

money loans

 As with any loan, the borrower must be of legal age and resident in Germany. Negative Schufa entries must not exist, a regular income must exist. The offer is not available for pensioners, the self-employed, freelancers and the unemployed.

A fair and transparent contract is fair for loans with a minus interest rate: fixed interest rate, early repayment is possible without restrictions – perfect for people who need short-term dollars 1000, who are in employment subject to social security contributions and who are certain that they will definitely pay the monthly installments of just over $ 40 will be able to pay over the entire term.

However, minus interest rate loans are always promotional loans. Such a loan can be used exactly once per customer – it is a pure marketing campaign to find and attract new customers. Of course, with such campaigns one hopes that new customers will conclude a follow-up business and thus become profitable. The negative interest loans are also limited to a loan amount of USD 1,000.

Such a loan makes sense, for example, when bridging a financial bottleneck that would otherwise have to be paid with comparatively expensive overdraft interest. The very specific requirements for these promotional loans, such as that you have to be a new customer and the maximum loan amount is quite low, basically make the loan uninteresting.


Cheap alternatives

Cheap alternatives

When looking for a serious loan, you simply cannot avoid comparing the terms. Make yourself clear beforehand what exactly you want or how much credit you can afford. A sober list of all realistic monthly income and expenses and how much room you would have to pay a loan installment each month are necessary. Credit calculators and ultimately credit comparisons help with the calculation and decision.

Negative interest, negative interest, loans where you pay back less than you get – the promotional products of some online providers, which are particularly well-known through TV advertising, have many names and are very popular with customers. One thing should be clear to those interested: a loan, which may represent a minimal plus deal, must also be repaid. The borrower sells his data for around 6 dollars and is pre-qualified for future business with the provider – everyone has to decide to what extent it is worth it.

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