Loan for public servants: what is it and how does it work?

Loans for public servants are one of the most advantageous types of credit on the market. The interest rate ceiling was recently reduced from 2.5% to 2.2% per month.

Do you already know or know how it works? loan for public servants?

If you know it, you know that it is one of the best lines of credit in the financial market, and it even has the lowest interest rates, which are even lower than those for INSS policyholders.

However, if you're unfamiliar with this loan model, don't worry! Stay tuned, because in this article you'll learn what this type of credit is and how it works.

Don't miss it! See our index below:

• What is a loan for public servants?
• How does it work?
• What are the advantages?
• Interest rate.
• How much can a public servant borrow?
• How to apply?
• Conclusion.

What is a loan for public servants?

The andloan for civil servants is an exclusive line of credit for this audience, it is also known as payroll loan.

Although it is a payroll loan, some conditions change when requested by a public servant and an INSS insured person. For example, the interest rate differs, but the credit line remains the same.

There are financial institutions that only offer loans to public servants, but there are others that focus primarily on INSS retirees and pensioners.

It will all depend on where the person applies for credit.

How does the loan for public servants work?

Firstly, this line of credit can be requested by any public employee, whether state, municipal, federal or members of the armed forces.

In other words, anyone who has passed a public exam to enter a professional career can apply for this line of credit, including:

• teachers;
• servants;
• general services assistant;
• judges;
• SUS professionals.

The installments of the loan for public servants is deducted directly from your payroll, that is, from your salary.

Therefore, when you apply for this line of credit and sign the contract, you are allowing the financial institution to deduct your loan installments directly from your paycheck.

What are the advantages of loans for public servants?

Since loan installments are deducted directly from payroll, this group also enjoys professional stability, and payment and application conditions are simpler and more accessible.

For example, the interest rate is the lowest on the market and there is no bureaucracy when applying, even people with bad credit and low scores can get approval quickly.

The payment terms are also excellent, with a longer grace period of up to 120 days, meaning that after signing the contract, you will only start paying back your loan in 4 months.

In addition, the time to pay is also longer, as a result of which the installment amounts are also certainly within the budget.

The requested amount also appears in your account quickly, ideal for public servants who need money urgently!

Two other great interesting advantages of loan for public servants is: possibility of refinancing the loan and also portability.

In the first option, the employee can refinance an existing loan, which is great because it allows for an even longer repayment period.

In the case of portability, with this function the employee can transfer their loan to another financial institution.

The advantage of this practice is that you can switch to a bank where interest rates are lower and the repayment term is longer.

Interest rate

As already mentioned, the interest rate on loans for public employees is the lowest on the market.

The current ceiling is 2.2% per month, so this is the average, you may find lower or slightly higher percentages, but nothing that greatly exceeds this ceiling.

Of course, the right percentage will depend on the institution you choose, so it's important to research and compare well before choosing.

To find out the interest rate of each institution, you can access the Portal of the Server. When accessing the website, in the menu on the left and right of the screen, look for the “Consignment” tab.

How much can a public servant borrow?

There is a margin defined by law that determines the limit that this public can take out in credit, in this case the margin is 35%.

This means that you can only commit 30% of your income to a loan and 5% to a credit card limit.

For example, if you receive R$$2 thousand, it does not mean that you can only request a loan of R$$600.00.

In fact, loan installments cannot exceed this amount, that is, the 30% margin refers to the monthly salary.

How to apply?

First, you need to choose where you want to apply for this loan, normally, public servants receive their salary from Banco do Brasil, in fact, this group has one of the lowest rates, as you can see in the table.

Currently, public servants can receive their salaries wherever they prefer. If your bank doesn't offer the lowest interest rates and payment terms, you need to research to see which option is best.

In this case, you will need to open an account first and then apply for the loan for public servants.

Ideally, you should apply for the loan at a bank where you are already a customer and have a good relationship.

However, if you find better conditions, you can request another option.

You can usually easily apply for a civil servant loan through the bank's app or website.

However, some banks only allow you to apply at a physical branch. It all depends on where you choose.

Conclusion

THE loan for public servants It is one of the most advantageous options on the market, even so, it is necessary to compare well and carry out financial planning before applying.

Choose the most advantageous and economical option, with payment terms that fit your budget.

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