Home > Interest Free Loans
Interest Free Loans
Personal Loans up to $15,000
Money in your bank account and ready to use in 60 seconds once approved*(1)
No interest loans: Do they exist?
If you are making a large purchase, like a house, car or anything in between, an interest free loan can seem very attractive. ‘Interest-free loans’ can be hard to find, but they are not impossible depending on your current financial situation. This will also depend on the reason you are applying for your loan, as this will impact your ability to get approval.
Most traditional and online loan lenders do not offer ‘interest-free’ loans throughout the duration of the loan period. There are some lenders that may offer special interest free loans, but this will usually only be for a specified period of time (which is normally quite short). It is important to read the fine print when looking for interest-free loans.
What are interest free loans?
An interest-free loan in Australia is a loan that does not incur interest. While these kinds of loans are not offered by banks or other lenders, there are often lenders that offer loans with no interest over a period of time. Depending on your agreement with your lender, you could have a period of several months or longer paying no interest. This can be helpful to assist your cash flow, especially after making a large purchase that may have incurred other fees. It can also be a helpful way of developing your budget. Once the interest free period is over, you will begin paying interest at your agreed interest rate (usually in monthly repayments).
Why do people apply for interest free loans?
The main reason people apply for interest free loans is to save money. Making a large purchase with a long repayment period will end up incurring interest, so you can end up paying a lot more than the value of your item over time. Interest free loans can seem like an easy way around this problem. An example of this would be purchasing a car; an interest free car loan can seem like a great way to minimise your expenses. An important thing to note is whether you choose a fixed or variable rate interest charge when the interest-free term ends and being prepared to pay more when this time comes.
What are the pros and cons of interest free loans?
- They save you money on interest
- There are no additional fees and charges
- You have 12 to 18 months (typically) to repay your loan
- You can only apply if you are in financial hardship
- You can only use the loan to pay for essential services or household items
No Interest Loans Scheme (NILS)
A no interest loan lets you borrow up to $1,500 to pay for essentials over 12 to 18 months. It is a loan that is used to borrow money quickly in order to help you get back on your feet. There is no interest, fees or charges; you only repay what you borrow. For additional information about no interest loans and StepUp low interest loans, visit the moneysmart website.
What other interest free loan options are available?
There are some other options that you can consider when searching for interest free loans. We’ve listed a few of these options below.
0% interest financing from retailers
Some retailers offer interest-free periods on the sale of their goods or services. If you repay your loan within their specified time period, you will not need to pay interest.
While these loans are not strictly ‘interest-free’, these loans are low-interest personal loans from $800 to $3,000 to help low-income earners finance cars and car repairs. You may be able to use this loan to fund other necessary household items.
Centrelink cash advance
If you are on Centrelink, you may be able to request a cash advance. This involves receiving a portion of your future payments early for you to repay over time from your remaining Centrelink payments. For more information about requesting a Centrelink cash advance and whether you are eligible, visit the Department of Human Services.
Pension loans scheme
If you are old enough to receive a government pension and hold equity in real estate, this scheme uses the funds you have invested in real estate as a non-taxable loan. While these loans do come with interest, the rate is significantly lower than what is charged on a typical personal loan. For more information, refer to the Department of Human Services website.
Who can apply for interest free loans?
To qualify for the ‘no interest loan scheme NILS’ you must meet the following requirements:
- Have a Health Care Card, a Pensioners Concession Card or an income less than $45,000 per year after tax
- Have lived at your current address for more than three months
- Show that you can repay the loan
What can no interest loans be used for?
You can use a no interest loan to pay for essentials such as:
- Household items, like a fridge, washing machine, computer or furniture
- Educational materials, like a tablet or textbooks
- Some medical and dental services
- Car repairs and tyres
It is important to note that no interest loans are not cash loans. The NILS provider will generally provide you with a cheque addressed to the supplier.
Jacaranda Personal Loans
Jacaranda Finance does not offer interest free personal loans. However, we can offer you a competitive interest rate on our low interest personal loans. Jacaranda Finance offers personal loans from $1,000 to $15,000. So, if a no interest personal loan cannot cover your expenses, consider applying for a personal loan with our 100% online loan application process. If you have questions about our interest rates and other fees, you can check out our personal loan interest rates page or you can use the loan slider before starting your application.
At Jacaranda, we like to make things simple. You can apply for a personal loan with us by following these simple steps:
Step 1: Apply online
Use our loan slider to select the amount you wish to borrow. Once you’re happy, click ‘Apply Now’ and complete the rest of your application.
Step 2: We assess your application
Once we have received your completed application, including your supporting documents, we will begin processing. We will aim to get back to you within 60 minutes* (if you apply within our business hours).
Step 3: You receive your money
If your application is approved, we will send you a copy of your electronic contract. This will clearly state all of our terms and conditions, so we recommend that you read this carefully. Once you have signed and returned it to us, we will transfer your funds straight away. You could have them ready to use in just 60 seconds** (depending on your individual banking circumstances).
Worried about your credit score? We offer loans with bad credit.