Where to get interest free and zero-interest loans.
Interest-free loans (also called zero-interest or 0% APR loans) are rare but not impossible to find. Government agencies, charities, religious organizations, and community lenders sometimes step in to offer these kinds of programs to help households with low or moderate income or credit scores. Learn more programs and organizations that provide loans with zero percent interest rates. Such loans are never “free” in the sense of being grants that do not have to be repair. In fact, since it is a loan, the principal must be repaid. What makes them more affordable is that no interest or fees are added, reducing the monthly burden. The interest free loans (or 0% interest rates) can be used for paying a number of bills including home repairs, housing, car payments or auto repairs, and more.
Interest free loans from nonprofits, religious groups and specialty lenders
Jewish free loan associations as well as Hebrew free loan societies are a source of funds. Note that some of these charity programs only provide money to people of the Jewish Faith - others provide loans to people regardless of their faith. The concept of gemach (plural: gemachim) is a Jewish tradition of free-loan funds to community members. The money may help pay for emergency bills (rent, utility, car repairs, etc), weddings, medical costs, or even as a form of debt relief. The terms and conditions will vary based on state, applicant’s income level, credit history, and other factors. Learn more on the Jewish Federation interest free loans .
Mission Asset Fund – Lending Circles
is a San Francisco based nonprofit but they have local partners as well across the country. The organization facilitates “pooled lending” or lending circles, which is when a group of participants contribute to a pool and then the pool lends to members at 0% interest. The program helps borrowers build credit or pay bills by reporting repayments. Find how to get loans from Lending Circles . They also have specialty versions of the program. Lending Circles are programs such as interest free Security Deposit Loans (in which the nonprofit pays a voucher to a landlord, then the participant repays over time) and Lending Circles for Citizenship and DACA program. Referrals as well as information on free, or even 0% interest rate loans, will be provided by local community action agencies . The locations are generally part of the front lines in fighting poverty. They can help with emergency needs or bills as well as address long term needs around employment, budgeting, and more. Money, whether a loan at 0% APR or grant, may be used to pay for. Transportation expenses for work, job training, or educational needs. This may be for an emergency car repair to get to work or an auto loan hardship payment. Some home buying (such as down payment or closing cost assistance) programs may be available using free loans from HUD – Housing and Urban development. Energy expenses, such as for weatherization or energy conservation upgrades to homes. Free loans may be issued for a number of other needs, and each will need to be approved by the team at a local office. Find details on local community action agencies to try for help by state. Transportation assistance is offered by either an interest free or very low interest rate loan program from Ways to Work. Any type of financial help will be very limited. There may be a few thousand dollars available for buying a used car to get back and forth to work. In some cases, the funds can pay for transportation for class, including college, a high school GED program, or federally approved good training program. The non-profit Ways to Work organization is located in many, but not all states. Interest free loans may be issued by local or national churches . There may be emergency funds from Catholic organizations, Protestant, Christian faith based groups, and Muslim-affiliated charities among other religions. Society of Saint Vincent de Paul, Unlimited Methodist Church, or Catholic Charities may all issue 0% APR loans as a last resort. The funds can pay for housing costs (rent, utilities, etc), transportation to a doctor and other one off bills. The type of no interest loans from churches will generally focus on many needs. The religious groups often depend on donations or tithes from their members, so money is limited. Interest free or loans with very low-rates, including for borrowers with no or poor credit histories, are available from numerous charity organizations . Both local and national groups may provide funds, often described as grants or 0% loans. The money paid out will have a strict application process and limited funding, so these resources can run out during the year. When applying to a charity, bring documentation such as a lease, proof of income, SSI, unemployment benefits, and identification. Any loans that have no fees or interest due are often combined with budgeting help or case management. The funds, when issued by a charity, commonly target essential needs such as car repairs to keep a job, housing including back rent, deposit or utility costs, medical copays or deductibles, emergency travel, and critical food items. Other uses may be approved too. Charities may not only provide loans, but there may referrals to government aid and other sources of free money which can be looked into.
- list of possible charities to apply at range from the Salvation Army to Urban League (for housing related expenses), Saint Vincent, and many others. Find a listing of
charities that help pay bills . Some lenders and fin-techs (such as Paypal, Venmo, Klarna, etc) offer Buy Now, Pay Later (BNPL) plans that function like short installment loans with 0% interest if payments are made on time. Consumers should read the terms carefully, as fees can apply for missed payments or longer-term financing options. Consumers in effect get to shop for and get the goods they want, but they pay for them over a few to several months - interest free. BNPL can be one way to save money on your bills and interest costs. Read more on
Buy Now Pay Later apps
. There are also special-purpose zero-interest programs that may fit certain households. As an example, for entrepreneurs, Kiva U.S . provides 0% interest, no-fee crowdfunded business loans— at generally $1,000 to $15,000. The money is issued through partnerships with local “hubs” and community trustees; applications can be limited during high demand, so check current eligibility and learn more here https://www.kiva.org/borrow .
Government affiliated programs that provide loans with zero-interest due
Military and Veteran Service Organizations
provide funds. Several branches of the U.S. military maintain interest-free loan programs for active or retired service members. Examples include the following. The
Navy-Marine Corps Relief Society (NMCRS
) provides interest-free loans for emergency travel, education, employment costs (even transportation) and disaster relief. Use this to find a location for a loan or financial help https://www.nmcrs.org/find-a-location-index . The
Air Force Aid Society (AFAS
) offers the
Falcon Loan
and other grants/loans to Air Force and Space Force members and their families. The Army Emergency Relief (AER) fund provides interest-free loans and grants to soldiers and families in financial hardship. The loans can be used to pay everything from rent or a mortgage to buying food, medications or paying utilities. The website for AER is https://www.armyemergencyrelief.org/loans/ . If you or a family member serve/served in the military, check with your branch’s relief organization. Interest free loans from HUD as well as government organizations primarily flow through local programs for home repairs, code violations and accessibility improvements for seniors or disabled people. There is not one single “HUD Free Home Loan Rehabilitation Program,” but cities and counties use HUD’s CDBG and HOME funds to run their own rehab loan programs. These are often loans at 0% interest with deferred payment due at sale or transfer. One of the main ones is the
Free Home Loan Rehabilitation Program
. Funds can pay for everything from roof repairs to paying for structural defects, disability modifications, window repair, and much more. Appliances or mechanical systems like furnaces or water heaters may also be covered by HUD or government loans. For example, loans may be for energy efficient air conditioners or heating units, fans to cool a home during the summer, free air conditioners or box fans, and more. It will not pay for so called kitchen appliances though. While the term of the free loan will depend on many factors, some may have repayment schedules push out if 30 years. Additionally, HUD’s Good Neighbor Next Door program offers a kind of forgivable “silent second” mortgage. The money is for first responders, teachers and people that were in public roles. If the buyer lives in the home for a required term (usually three years), no payments or interest are required on the discounted portion. and learn more here https://www.hud.gov/helping-americans/good-neighbor .