RMC Loan: What is it and how to identify it?

RMC Loan: What it is, its consequences, and how to identify it! Read the text to the end to learn more!

Have you ever heard the expression "Buying a pig in a poke"? RMC loan It happens more or less like this. 

Read the text and discover what an RMC loan is and how to identify this charge. See below what will be covered in this post:

• What is an RMC loan?
• What are the consequences?
• How to identify it?
• What are the best companies to apply for a payroll loan?
• Conclusion.

RMC Loan: What is it?

Before finding out What is an RMC loan?You need to understand what this acronym means.

THE RMC stands for Reserved Margin for Loan Disbursements. It is intended for payment of the payroll-deducted credit card bill, and includes automatic deductions from the paycheck. 

According to the law, public servants, retirees, and INSS pensioners can commit up to 30% of their payment to loans.

The percentage allowed for credit card payments is 5%, meaning that up to 5% of your income can be committed to paying your credit card bill.

Typically, the services offered to this audience are consignment loans. To understand how these two products work, read the text: 

Credit card or payroll loan: which is better? 

However, some banks are offering a credit limit for withdrawals of up to 5%. In other words, they are using the RMC as if it were a traditional loan.

However, the use of this available credit limit is considered abusive. This is because the rates charged on credit card transactions are much higher than those for loans.

It's like taking out a secured loan, one of the options with the lowest rates in the country, but paying the amount with added interest and fees based on the credit card percentage.

In fact, some media outlets characterize the practice as RMC scam And the problems don't stop there.

What are the consequences of an RMC loan?

One of the consequences of this improper use of credit cards is over-indebtedness. This is because the employee does not immediately realize that they are only paying the interest and charges levied on the use of the credit card. 

She believes that she is paying the loan installment every month, and as a result, the debt is only increasing and becoming more and more difficult to pay off.

In many cases, the individual doesn't even realize the situation, or only realizes it when the situation is out of control, that is, when they are heavily indebted.

To get out of this situation, he would have to pay off the RMC loan in a single installment.

The RMC loan This occurs when the bank fraudulently uses the available credit limit, which should be used for expenses related to the employee's own payroll-deducted credit card, and presents this amount as if it were a regular loan.

This results in a personal loan, but with credit card interest rates. In other words, 51% of your salary is committed to a loan with a high interest rate without you realizing it.

How to identify a loan on an RMC?

Identifying this type of loan is very simple. Access your payslip at [website address]. My INSS and download the PDF.

The RMC is registered under code 322, so you can check if there are any charges.

To avoid this type of scam, you can cancel your Consignable Margin Reserve. However, you must not have any outstanding debt.

If you accidentally took out this loan thinking it was a traditional loan, you can seek legal counsel and file a lawsuit against the bank.

If you knowingly took out an RMC loan but are having a lot of difficulty paying it off, contact the bank and see if it's possible to renegotiate the debt.

One alternative is to take out a secured loan and pay off the debt in full.

This is because the interest rates on payroll loans are lower than the interest rates on RMC loans.

So, compare and see if it's worth it. Check out some great payroll loan options below.

What are the best companies to apply for a payroll loan?

What is an RMC loan?

In the financial market, there are many companies that offer this type of loan. This is due to the security of the transaction, since the installment amount is deducted directly from the payroll. 

Apart from that, this loan model is one of the most economical, as it has the lowest rates and fees on the market.

In this case, you need to find a trustworthy company with a lower interest rate. 

Currently, the maximum interest rate for payroll-deducted loans is 2.14% per month. Therefore, the interest rates applied by financial and banking institutions should not exceed the legally established limits.

The Central Bank periodically publishes a table with the average interest rates charged for this type of loan.

Since the percentage changes frequently, before applying for a loan, Visit the Banco do Brasil website and check the updated table.

It is worth noting that the interest rate differs between loans secured by INSS (Brazilian National Social Security Institute) payroll loans, private loans, and loans for public servants.

Below is a list of the best institutions with low interest rates where you can apply for your payroll loan and avoid abusive interest rates. RMC loan:

1. CCB Brasil Financeira;
2. Bank of Brasilia;
3. Alfa Finance;
4. Sicoob;
5. Sicredi;
6. Inter Bank;
7. Caixa Econômica Federal.

Before applying, don't forget to plan well and compare which option is best.

No serious and trustworthy company will ask for a deposit to advance the loan amount. So, be careful!

Conclusion

As you can see, when applying for a payroll loan at your bank, it's important to check if it's not charged on the RMC (Retained Credit Margin).

Therefore, it's important not to proceed with the transaction, as the interest rates are higher. Opt for a transparent payroll loan option. Consider our suggestions.