How do bank companies make money from interest-free loans?

Nobody teach so if one is not financially savvy, can only learn from bad lesson by taking a loan and get burn from it.

I got burned by it too last time. Learned the lesson and paid the price.

Maybe Seedly could consider white a blog post on it with the fine prints to look out for so some could avoid learning the lesson the hard way.

😃👍 Thanks Seedly always for always being the forefront to lead the change by sharing and educating all 😍🙏🙏🙏

I saw this email from one comparison sites in Singapore:

It was titled - "Buy now, pay later! Interest free cash!"

It had these words - "Interest Free cash" "no interest fees" "No processing fees" splattered over it.

When I went in deeper, I started to realise something abit strange... In fact, it looked like a 'Balance transfer' from a credit card, which was positioned like a loan but interest free. Details are in the screenshot below.

Here's my guess:

If everything is really 0%, to me, my best guess is for the person who borrowed the loan (up to $20k) is really probably to default on this loan and start accumulating debt of up to 27% p.a. Which is really no joke. Credit card rates.

Hmm... with such models, I'm really wondering if there is a need to be more explicit with such rates and advertising.

When I was in reservist last week, I had a ton of free time to talk to my guys from a varied plethora of social statuses and family upbringing and I can see how in their own circle of friends, who has the most motorcycles, or look flashy etc would stand out. Hence taking on early debt in life to most was a norm.

It is indeed quite a messed up industry actually... when you look at it, feeding off people's need to consume more and more, with money they don't have.