How To Get Interest-Free Loans For Your Business?

[Good-Guy]

Taking loans or borrowing money is a very common thing in the world. We have been borrowing things for a long time and when it comes to businesses, many banks and financial institutes have a separate department that deals in such kind of loan programs. One of the biggest disadvantage of taking loans is that the borrower would need to pay interest on loans. These interest rates could increase by the passage of time when the borrower fails to pay the loan back at the right time and becomes defaulter. This means an increase in bad debts. This is why there are many people who are interested in taking interest-free loans.

There are many ways to get loans without having the need to pay interest. One of the best ways to do is borrowing money from an Islamic bank. I am a Muslim and the concept of Islamic banking is thriving in here. Since our religion does not allow us to deal in interest, it is possible for a person to get loan from Islamic bank. Secondly, even many governmental schemes also allow people to get interest-free loans, as the government announces packages for people. Another way to get interest-free loans is by asking a family member. What are some other ways to get such kind of loan?

 

[Jasz]

You've heard the saying, "The early bird gets the worm." That's why you get up at 5 a.m. to beat traffic and get to the office by 7 a.m.—because you know the worms are there.

The same thing applies to getting interest-free loans for your business: The earlier you start applying, the sooner you'll be approved, and you'll have more money in your pocket.

There are two different types of business interest-free loans—government-issued and crowdfunded—and they both have their pros and cons.

Government-issued business interest-free loans:

These loans are issued by the government based on your company's financial standing and area of operation. They're typically used for particular purposes, like expanding an existing business or building a new one from scratch. The government issues these loans at a low rate (between 1% and 3%) for very long terms (typically between 10 years and 15 years). Even though these terms are long, they actually help you out in the long run because you pay less overall interest than if you took out a loan that had a shorter term with higher monthly payments.

If your company is eligible for government-issued business interest-free loans, make sure you apply.