How Do Zero Interest Loans Work?

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Anyone able to shed some light on the functioning of zero interest loans and what the implication of late payments are?

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A zero interest loan is a type of loan in which you repay only the original borrows amount if you stick with the deadlines specified in the agreement. If these stipulated deadlines are not met, certain liabilities may come to bear on the borrower in the form of retrospective interest payments which may be quite onerous on the amount you owe. Such loans are usually offered by other lenders and one way to qualify is to have a clean credit history.
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