Nowadays, many banks, including DBS, UOB, Citibank, etc have this zero interest personal credit program.
The telemarketer would tell, hey sir or madam, now the bank charges you ZERO percent interest rate for 6 months, do you want to take up the loan? blah blah blah and we only charge you a 2% admin fee.
Zero interest? 2%? Still sounds good?
Wait, 2% for 6 months is equivalent to 4% per year. See the trick now? And by the way admin fee is upfront payment, not monthly rest. In other words, if you repay the loan within 3 months, the interest rate is actually 8%!
Well, good deal or not depends on how badly you need the loan at that moment. Even 8% is much better than Ah Long Pte Ltd, right?
But key point is, if it is zero interest, banks will also have zero interest to loan you the money! Loan with your eyes open.
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