How to Borrow A Lump Sum of Cash at 0%

How to Borrow A Lump Sum of Cash at 0%

Last updated on May 27, 2018 Views: 2066 Comments: 5

It’s not often banks lend money for free. But there is a strategy that lets you borrow money without paying one red cent in interest – and it’s available to all Canadians. In fact, we’ve seen people borrow up to $90,000 interest free with this technique.

So who offers these ridiculously cheap, if not irresponsible loans? Canadian banks charge 7.5% for a personal loan, 5% for a line of credit, and 3% to its best and largest corporate customers. Is an interest free loan really possible? The answer is a resounding YES.

We’re talking about a little known product, offered through TD’s credit card subsidiary, MBNA Canada: a cash advance deposited into your bank account from your credit card, offered at 0% interest for 12 months. With a cash advance deposit, MBNA will deposit a lump sum of cash, as high as your credit line, into your bank account, with an initial transfer fee of 1% of the amount borrowed. But unlike most cash advances, you will pay no interest for 12 months!

Why It’s A Winner

Here are the benefits:

  • The 0% rate is lower than any other line of credit or personal loan available;
  • Get the cash deposited into your account within 2-5 business days;
  • The direct deposit cash advances are personal and unsecured – unsecured at 0%!
  • Use the money for any purpose: Pay off a mortgage overdraft or credit card payment, take advantage of items on sale, invest in stocks or home renovations, or get that something that can’t wait. There are no restrictions on how to use these 0% funds;

To get a cash advance deposit, all you have to do is apply for the MBNA Platinum Plus credit card (limited time offer – to June 30th, 2018). There is no annual fee, so it’s risk free. Once approved, you’ll be able to immediately request that cash be deposited into your bank account from your credit card interest free for 12 months.

The other nice thing about the Platinum Plus credit card is that it can ALSO act as a balance transfer card. You can transfer balances from other high interest credit cards and consolidate your loans onto the Platinum Plus card at the same 0% rate for 12 months.

We haven’t seen any other credit card issuers in Canada offer a published rate of 0% for 12 months for cash. In most cases cash advances and access checks start accumulating interest immediately at rates as high as 24.99%. That’s what makes this offer so tantalizing and outrageous. You’re getting cash at 0%, which is virtually unheard of in Canada. Hopefully we’ll start to see more banks coming out with similar offers. Until then this is the only game in town.

A Word of Caution to the Borrower

Warning: Cash advance deposit loans can be dangerous to people who can’t control their spending. Remember, the 0% rate for 12 months jumps to a higher rate after the promotional period of 12 months expires. If you’re not disciplined with money, we’d suggest you save before spending.

That said, for those more responsible, it’s not often banks give away money interest free, so when it happens milk it for all its worth!

Article comments

5 comments
Ricky says:

Hi I have a lot of clients that are looking for these kind of credit cards with 0% Apr and also banks transfers I have people that are looking for up to 500000.00 credit limits would u be able to help me with that

The GreedyRates Team says:

Hey Ricky!

If you’re interested in a great 0.00% balance transfer deal, which can also be accurately construed as an “interest-free loan”, then it’s important to know that the MBNA Platinum Plus card is no longer offering this deal. MBNA moved it to two of their other cards—the True Line Mastercard and the True Line Gold Mastercard. Both are strikingly similar, but one has a slightly lower annual fee and slightly higher interest rate (the regular True Line card). Instead of 0.00% for a year, however, MBNA has reduced the promotion to 6 months, and only gives it to those who apply before August 30, 2018.

Additionally, we’re not sure if MBNA would approve a balance transfer for $500,000. They might respond well to a call and special request, but for such a large sum, they might prefer to handle it without any kind of credit product attached. It’s worth a try, however. If you’re approved, MBNA allows cardholders to use their balance transfer to send cash (up to their available credit limit) to other bank accounts and credit cards. So, if you get a loan from elsewhere and can cover it with your MBNA credit limit, you can simply transfer cash to the other bank to expunge your debt (thereby transplanting it to MBNA at 0.00%).

Let us know how it goes!
GreedyRates Staff

wilbert manalili says:

i need only 2000 to pay my bills and card cauze i resign in wrha due to illness so i have nk income ill w8 my pavkage for benefits thats a lumsum package to my employers (wrha)anyone known where can get a loan ? while still w8ting my lumsum ti the goverment

The GreedyRates Team says:

Hello Wilbert,

If you’re in need of a loan due to your recent illness-related resignation from the WHRA, then you came to a good starting point. We can help guide you towards the loan that suits your situation best, but it will likely come from a credit card–the MBNA Platinum Plus–rather than a traditional loan. As you may have read in the article above, MBNA allows new cardholders who are approved before June 30th, 2018, to do a combination of balance transfers and/or cash advances at 0.00% interest. Your situation would greatly benefit from a debt consolidation tool like this.

People often use the Platinum Plus card to transfer outstanding balances on other credit cards, and get 12 months of interest-free relief. It can also be used in the other direction, like to pay off a line of credit or make a cash advance to another bank account–all at the same 0.00% for 1 year. For yourself, you need to pay bills (which are likely tied to your current bank account) and clear your current credit card’s balance as well.

If you’re approved for the MBNA Platinum Plus card, then you’ll be able to do a two-step maneuver that will take care of both issues at once. Use your current card to pay all your bills in full, and then transfer that balance to MBNA. You can also do a cash advance from MBNA, up to your available credit limit, to your current bank. Either way, you’ll be able to handle your pressing obligations and wait for your lump sum government package without worry.

GreedyRates Team

Furqan Uz Zaman says:

Please contact me, I need $50000.00 and want one small monthly payment to pay back this loan.