Published in September 27, 2018 November 27, 2018 Tags: retirees , contract , payroll deductible loan , INSS benefit discount , discount on paycheck , payroll loan , pensioners , civil servants , interest rate
Payroll-deductible loans have been one of the most accessed credit modalities in Brazil. Those who are entitled to the credit assignment already know this loan and know that the interest rates are lower .
Several are the reasons that lead to these lower rates. The method of payment is the main reason for such an advantage. If compared to other credits or personal lines, the payroll is up to ten times cheaper.
It is worth noting that the payroll loan interest rates are determined by law . That is, there is a collection limit that should always be respected, even though banks can set their own rates.
Want to find out why the payday loan has the lowest interest rates? Find out now which features of this line of credit make it so advantageous.
What is the interest rate of the Payroll Loan?
It is worth noting that only persons with fixed and guaranteed income are entitled to the consigned loan. These prerequisites include the beneficiaries of the INSS, Public and Military Officers of the Armed Forces .
Some private companies also have agreements with banks and allow their employees to make payroll deductible loans. The difference, in this case, is that the interest rates charged are slightly above the conventional – but still, cheaper than the others.
Currently, the maximum nominal interest rate charged for Retirees and Pensioners is 2.08% per month. Public, Federal, State and Municipal servers pay 2.05% per month .
The average rates charged for Military and Workers CLT are around 2.50% per month – and may vary from bank to bank.
Therefore, a loan of the same value in different modes and banks, may suffer changes in values.
Learn the main reasons why payday loans have lower interest rates.
5 Reasons for the Payday Loan to have lower interest rates
With various credit options available in the market, consumers need to understand what their main differences are.
Whether it is for a lower-value loan, financing a home, or borrowing larger amounts, there is certainly at least one more appropriate line for each case.
And, the care to not be indebted is to take credit only when necessary, thus avoiding a new debt.
One of the criteria for evaluating a loan may be its interest rate – which usually varies greatly from one mode to another. So it’s worth researching and comparing before closing any deal .
Find out now why the payday loan has lower interest rates.
1 – Automatic form of payment
The main feature of payroll loan is your form of payment . That is because, the monthly installments are always discounted from the payment of the debtor.
That is, when hiring a payroll deductible loan the client allows the value of the monthly payments to be deducted from his salary or benefit. Therefore, the paying agency debits payments before making the amount due.
In this way, the bank has guaranteed the full or partial payment of the installments. The same applies to paycheck-deductible credit cards , where part of the invoice is automatically withdrawn.
2 – Reduced risk of default
Since the payment is automatic, there is no way to delay or fail to pay a payroll loan monthly. Therefore, the risk of default is minimal.
Therefore, financial institutions consider this a low risk operation . This is another situation that gives rise to lower interest rates.
Besides the banks do not run the risk of getting without receiving, the automatic debit of the monthly payments is interesting also for the contractors of the loan.
With the payment scheduled there is no way to delay a parcel, by forgetting, for example, and there are no fees or extra fees for this.
3 – Use of the assignable margin
The assignable margin is the monthly limit that can be committed from salary or benefit to pay off payroll loans.
This amount was stipulated to prevent the interested parties from incurring debt . Thus, there is no way to contract credit greater than the allowable amount.
Thus, every interested party must respect a monthly ceiling of what can be spent with payroll deductible loans. Namely, each person can commit up to 35% of their net pay .
That is, after payroll deductions such as taxes, for example, one can spend 35% of what is received every month. This limit is easy to calculate, simply multiply the salary or net benefit by 0.35.
The assignable margin stipulates yet another rule, which refers to the use of the limit. The borrower can use 30% of his loan repayment. The other 5% are for the exclusive contracting of payroll-deductible credit card.
Such a margin, therefore, limits what each person spends per month. With this the risk of indebtedness is lower and banks may charge lower interest rates.
4 – Types of agreements served
As has already been said, it is not any person who is entitled to contracted payroll loan. This credit is available to those who have a guaranteed payment at the end of the month.
This criterion for the release of credit allows the payment to always be automatic, a characteristic of the payroll loan. And with this guarantee of discharge, banks charge lower interest rates, giving this option as a benefit.
5 – Exemption from the collection of additional interest rates
The payroll loan does not provide for the collection of any additional interest rate . This, because, there are no fines or fees due to late or non-payment (which is done automatically).
For those cases where the CLT worker is disconnected from the company, the CLT must fully assume the discharge of his debt with the financial institution. The conditions for payment must be confirmed directly with the bank.
It is worth mentioning that the interest rate is one of the components of Total Effective Cost (CET). That is, how much a loan actually costs. Thus, with lower interest rates, the CET also tends to be lower.
That credit, therefore, ends up weighing less in the pocket and ultimately.
What to Consider When Hiring a Payday Loan?
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Just like any loan, the payroll also has some conditions that can vary between one bank and another. This is due to the credit policy of each institution.
Therefore, when considering contracting a payroll loan , you must be able to:
Total Effective Cost (CET)
The Total Effective Cost is the amount that refers to how much, in fact, a credit operation costs. Therefore, when it comes to taking out a loan, it is important to look at the CET, not just interest.
A bank’s lower interest rates do not guarantee that it will offer the most financially advantageous loan. You must compare the Total Effective Cost of each transaction .
The CET takes into account, in addition to interest rates, the opening rate of credit, the IOF and the maintenance fees for registration. There are also other administrative fees that may vary from bank to bank.
Deadline for payment
The term of payment also interferes with the cost of a loan. That is because, the faster a bank gets back the value it borrowed, the lower the total debt value.
That is, the longer payment periods have higher interest rates. Just as the shorter deadlines have lower interest rates. Depending on the assignable margin, it is only possible to contract the loans with shorter payment terms.
Learn how to simulate, compare and hire your payroll loan. Guarantee the best options of interest rates, terms and conditions for payment.
How to simulate, compare and contract loan with lower interest rates?
The online credit simulation allows the interested party to compare different types of loans in various banking institutions.
Thus, it is possible to search with practicality what is the most interesting loan, for each type of need and pocket.
As seen, the payroll loan has its own characteristics that make it an exclusive line. Your payment method and legal rules ensure good opportunities for those who are entitled to the credit assignment. So before closing any deal, evaluate that option!
Do you want to find the lowest interest rate loan on the market right now? Use the online credit simulator to search and compare.
Receive personalized offers, hire and simulate without leaving home, but with the same safety as anyone who goes to a bank.
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