Interest Free Loans
What Does Interest Free Loans Mean?
Interest-free loans are loans in which no interest is required to be paid. With these loans, only the original principal amount needs to be repaid to the lender.
Many people opt for loan protection insurance to ensure coverage in the event that they are unable to make payments on their loans.
Insuranceopedia Explains Interest Free Loans
Even if a loan is interest-free, the borrower is still required to make monthly payments of a fixed amount to ensure the loan is repaid within a reasonable time frame. Borrowers can still face difficulties in repaying the loan if unforeseen circumstances arise. For instance, if the borrower or one of their dependents falls ill, or if they or their partner lose their job, making the required payments on the principal can become extremely challenging. This is particularly true for large mortgage loans with high monthly payments. Loan protection insurance offers coverage for such situations, helping borrowers manage these financial challenges.
