What Is 0% Installment Financing? Things to Know When Opting for 0% Installment Financing

With various shopping and consumption methods becoming increasingly popular, we are all familiar with the term "0% installment financing". This is a form of consumer credit, often applied to purchase transactions for products. In this article, we will explore the definition of installment financing and key points to know when opting for it to make the best financial choices.

How should 0% installment financing be understood?

0% installment financing is a type of financial arrangement that allows borrowers to purchase products or services without paying interest on the borrowed amount. This means that borrowers only need to repay the principal amount they borrowed without incurring any additional interest charges. Although no interest is required, customers will repay the borrowed principal amount over predetermined periods, usually monthly.

Repayment periods are usually evenly distributed over specific timeframes, making it easy for borrowers to manage their finances without worrying about additional interest burdens.

Customers often confuse between 0% installment financing and installment financing with 0 dong interest. To clarify these two concepts, you can refer to the comparison table below:

What Customers Need to Know and Pay Attention to When Opting for Installment Financing

1. Conditions and Terms

Thoroughly check and read the conditions and terms before signing any contracts to understand hidden fees, penalties for early repayment, and other potential costs that may arise.

Carefully review the promotional period because some 0% financing offers only have a 0% interest rate for a certain period. After that, the interest rate may increase.

2. Installment Financing Affects Credit Score

Opting for installment financing (including 0%) can affect your credit score if you fail to make payments on time.

3. Consider Repayment Ability

Evaluate your financial ability to ensure that you can make full and timely payments, avoiding falling into bad debt.

0% Installment Financing at Shinhan Finance

Apply for installment financing to buy laptops/phones at Shinhan Finance

Shinhan Finance is one of the leading financial companies in Vietnam with 100% foreign capital, providing diverse financial solutions for individual customers, including personal loans and 0% installment financing to ease your shopping burden. Shinhan Finance's partner brands are diverse and cover various fields, offering you excellent choices.

You can view detailed information on the conditions and how to participate in installment financing with Shinhan Finance's support.

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The fastest channels to register for a loan:

• Hotline: 1900 54 54 49 (press 2 – Loan consultation)
• Website Shinhan Finance
• iShinhan financial management application
• Fanpage Shinhan Finance
• Directly at Shinhan Finance transaction counters: See the address details of Shinhan Finance branches.

Sincerely,

Shinhan Finance