Payroll deductible loan is an affordable and cheaper credit option than other personal credit arrangements. unitedtribesofmichigan.org has examples
The difference can reach more than ten times, in some situations, when compared to the interest rate of the credit card, for example. However, this line has some specific rules.
Learn how the Payroll Loan works and know all its advantages .
What is payday loan?
The payroll loan is one that has its monthly installment discounted directly from the INSS salary or benefit.
In the consigned, the process is very simple:
Unlike the conventional loan, the portion amount is retained and automatically removed every month. That is, guaranteed in advance by the bank.
The institution paying the payment or INSS benefit is responsible for transferring this amount to the bank that lent the money.
This way, the loan holder does not have to worry about paying any boleto bancário.
The amount that can be committed in this operation must not exceed 35% of the rent amount (considering all loans contracted and other financial discounts). This is what is established in Law 10.820 / 2003 , which talks about the authorization to discount payroll benefits.
Understand now, in practice, how the payroll loan works and why you should consider this line of credit.
Who can hire?
To contract the payroll loan you need to fall into one of the following categories:
- Being a Retired or an INSS Pensioner;
- Be a Public Employee (federal / SIAPE, state or municipal);
- Being Military of the Armed Forces;
- Work with a formal contract (to have access to the Private Payroll Credit);
As the discount of the payment is made and authorized in the paycheck , it is mandatory that the company to which the interested party works or receives the salary or benefit, has an agreement with the banks.
Retirees and Pensioners, can only contract the loan consigned in authorized banks .
Approval and release of the Payroll Loan
Credit analysis and approval of payroll deduction takes into account, mainly:
- If the person concerned is in one of the eligible categories;
- If they meet the age range allowed;
- In the case of Retirees and Pensioners, they have a consignable INSS benefit (not all are accepted);
- If there is available consignable margin;
- If the paying source has an agreement with the bank of interest.
The credit policy of each institution is variable. However, generally these are the main rules for hiring a new payroll loan .
Another important point is that in the credit analysis no consultation with the SPC or Serasa is carried out. This means that, even if it is rejected, anyone who meets the prerequisites mentioned can contract the payroll.
After credit approval, signature of the contract and registration , the credit is released into the indicated bank account. Thus, payday loan money can be used for the purpose you desire.
For credit analysis and approval, the bank will evaluate the paycheck or extract of the benefit.
The amount released will also depend on the available assignable margin, however, the credit limit can not exceed the assignable margin.
It is worth remembering that private companies can establish a limit of the salary that can be used with loans, in order to maintain the financial balance of employees.
Now do the simulation of your loan or paycheck card! Enter the desired credit amount or the maximum amount of the installment you want to pay. Then choose your agreement and the number of installments. Discover the best bank payroll loan offers .
The discounts or payments of the payroll loan are fixed: they always occur on the same date and at the same value. That is, every month, at a certain date previously defined in the contract as the due date, the value of the benefit will be entered (retained).
The amount of the deducted benefit must be included in the paycheck, payslip or payment statement of the INSS benefit.
Payroll Loan Discharge
After discharge in normal time or by anticipation, the contract is settled, undrawn and the credit limit made available again, also releasing the assignable margin.
The terms for payment vary between 48, 72 and 96 months.
What are the main advantages of Payroll Credit?
The payday loan or paycheck card has a number of benefits. Know some.
Interest is cheaper and pre-fixed
The payroll interest is the most attractive and cheap of the personal credit line and the rates are fixed.
For Retirees and Pensioners the nominal interest rate ceiling is 2.08% per month. For Public Servants 2.05% per month.
Larger payment period
INSS Pensioners and Pensioners can pay their payroll loan in up to 72 months and Public Servants in up to 96 months.
Generally, the other personal credits have deadlines lower, reaching a maximum of 60 months. The extension of the deadline also tends to increase the interest rate charged (different from the payroll loan).
Approval and release of credit for negatives
Banks that offer payroll loans do not do research to SPC or Serasa. Therefore, even the negatives, if they are in one of the eligible categories, can get new credit, provided they have free margin.
In case you do not have more margin available you can opt for refinancing or credit portability .
Exemption from fees and insurance
It is forbidden to charge the TAC (Credit Opening Rate) or any other extra fee for simulating or contracting payroll loans.
Therefore, it is not necessary to make any deposit or advance payment to have the evaluation or release of the credit . This is an illegal practice that must be denounced.
Contract without guarantor or guarantor requirement
In this contract, the borrower himself is responsible for the payment of his debt, with the value of the installments discounted from his salary or INSS benefit, which reduces the bureaucracy of the credit contracting process.
Fixed income is the guarantee that banks evaluate as one of the prerequisites for obtaining credit.
Hiring can be done online
The whole process, from the simulation to the payroll loan comparison can be done online .
In addition to bringing greater convenience, some services like bxblue still allow you to compare the interest rates of various banks. With this, it is possible to compare and simulate easily, identifying the best conditions.
What are the main disadvantages of Payroll Credit?
Also know the disadvantages of this type of credit.
It is a long-term debt
And so, just like any loan or financing, it is essential that hiring be done only in cases of real need. It is worth remembering that the installments are fixed and will make the receipt at the end of the month less.
It is not possible to install installments or postpone the payment date
One must also be aware that, on the due date, the monthly installment will be automatically debited from the paycheck. In the case of INSS beneficiaries, retirement or pension.
Another point is that the discount is made in full amount. Therefore, it is not possible to split the amount, block the payment or defer to another date.
Even in the case of the consigned card, where the invoice is paid in the same way, the remaining balance is added to the value of the next month. When using revolving credit, therefore, you also pay additional interest rates.
The risk is higher for employees of private companies
Financial stability is one of the factors that minimizes the risk of default, in the case of payroll loans. This is why it is more common among public servants and retirees and pensioners.
Employees of private companies that have a payroll loan agreement and are dismissed before the end of the contract will have to settle the full amount remaining or renegotiate with the bank their debt.
Therefore, for the private payee, it is very important to evaluate what the contract foresees in relation to the loss of employment and discharge of the loan, to avoid unpleasant surprises.
When is it Worth Getting a Payday Loan?
To get out of debt in the short term, to realize the dream trip, to solve emergencies or to renegotiate debts with higher interest rates, are just some of the situations in which payroll can be used.
Those who work with a formal contract, are Retired, Pensioner of the INSS or Public Employee, usually have no difficulty in obtaining credit. But even among all available lines of credit, there is one that will best meet your need.
Hence, two good tips before hiring any loans are:
- Planning the amount of money that will be needed;
- Perform online simulations .
Thus, it is possible to compare the interest rates, terms and other conditions that each line and bank offers. When looking for alternatives, it is very likely that you can also save good money.