Depending on the coverage, free-use loans may be income-based or real-estate-based – the most common name for the latter is the mortgage. Loans for free use include, for example, credit card and overdraft loans, or fast loans or personal loans. It is important to note that most of the above-mentioned free-use loans can be claimed without collateral .
Credit card loans
For free-use loans , credit card credit is a card issued by a bank to purchase any commodity or service up to the limit of the credit line. If we can repay the debt before the closing of the given month, we do not have to pay interest; if it fails, the bank will start to liquidate the interest, but we will be able to continue our debt until the end of the next month. Of course, more and more banks are already flexible in this area, so they give a so-called grace period so that we can repay our debt.
Current account loans
Some financial institutions provide credit lines to their customers for a specified period of time. This means that certain bank account contracts may include a service where you spend more than the money you have on your current account . It is a type of consumer credit designed to eliminate temporary disruptions of this kind of free- loan.
Quick loans are usually easy to claim and require no detailed credit assessment or guarantor . Because of this, these free-use loans are more risky for the lender, so they are more expensive , so be careful.
The personal loan has no real estate cover , so we only need to prove our income, which will be the collateral for the loan. The maturity is 1-7 years, and the loan amount available is usually between 100,000 and 5,000,000 HUF . If we are unable to pay for the billing parts, the bank is entitled to deduct a corresponding amount from our payment to our bank account.