Online business school also offers interest free student loans to uk students

Mark the letter A, B, C or D to indicate the word(s) CLOSEST in meaning to the underlined word(s) in each of the following questions

The answer is D. no interest payments.

Your answer is correct. The closest word in meaning to “interest free” is “no interest payments.” The other options are not as close in meaning.

No extra fee means that there are no additional fees charged on top of the loan amount.
No limited time means that there is no deadline for repaying the loan.
No repayment means that the borrower does not have to repay the loan at all.

I hope this helps!