1. The interest-free period is limited.

For example, the national student loan, eligible borrowing students only pay full interest during their studies at school, and the loan interest after graduation is borne by the borrowing students themselves.

Another example is the national commercial guarantee loan. The term of interest-free loans provided to qualified entrepreneurs, individual industrial and commercial households and small and micro enterprises usually does not exceed two years, and the state finance does not subsidize the interest beyond the term.

2. The interest-free quota is limited.

For example, the maximum interest-free loan for small enterprises in the initial stage usually does not exceed 654.38+10,000 yuan, while the maximum interest-free loan for individual industrial and commercial households with continuous operation for more than 2 years and strong repayment ability can be increased to 200,000 yuan. In short, the interest-free loan amount will not be very high. If the loan amount applied by the borrower to the bank exceeds the interest-free amount, interest will naturally be generated.

Pay the interest first and then pay the bill.

Although interest-free loans are fully subsidized by the state, there is always a process to apply for interest-free loans. Usually, borrowers apply for interest-free loans from banks, and banks apply for interest discounts from local financial departments. If this process requires the borrower to charge interest normally first, then apply for financial discount and subsidize the borrower, it will create the illusion that interest-free loans still have interest.

4. Non-profit loan projects

The full state financial discount is usually only provided to borrowers engaged in low-profit projects, such as planting, breeding, animal husbandry, fishery, textile processing, agricultural and sideline products processing, rural education, rural construction, medical care, scientific research and other industries, while there is no way to provide interest-free loans to industries restricted by the state, such as construction, entertainment, advertising, sauna, massage, Internet cafes and so on.

5. Loans in non-poor areas

For example, the national business start-up guarantee loan in Guangxi only gives full financial discount to eligible individuals in poverty-stricken areas, while the financial discount to eligible individual business start-up guarantee loans in other areas is full in the first year, 2/3 in the second year and 1/3 in the third year. If the discount is not full, there will naturally be interest.

6. The loan was not repaid on time.

After applying for an interest-free loan, if you apply for an extension of the loan because you can't repay it on time, or loans overdue directly occurs, the financial department will not give you a discount, and all the loan interest and overdue penalty interest arising from these extensions will be borne by the borrower.

7. There are other hidden costs.

Although interest-free loans provided by some financial institutions seem to require no interest, in the process of actually applying for loans, they need to pay invisible fees such as handling fees and insurance premiums, which are actually the interest actually generated under the shell of interest-free loans.