Why take out a payroll loan?
Why take out a payroll loan? Here are 5 reasons to choose this line of credit.
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Payroll loans are one of the most advantageous financial services options. However, there are still doubts about whether they're truly the best option.
If you also have this question and are still wondering why you should take out a payroll loan, in today's article you'll find 5 reasons to help you decide.
So, keep reading to find out what they are. See our index below:
- About the loan;
- What is it for;
- 5 reasons to request yours;
- Conclusion.
About the payroll loan
The payroll loan is an exclusive line of credit for INSS retirees and pensioners, public servants, and private sector employees.
It differs because the value of the installments is deducted directly from the benefit or salary payroll.
However, its advantages also attract attention, including the competitive interest rate and ease of contracting.
Since the installment amounts are discounted directly from the benefit or payment, the risk of default is much lower.
Because of this, the financial institution has greater security in its operations and can offer better conditions to applicants, for example, longer terms and easier approval.
A difference with this line of credit is that you cannot request any amount you want, in fact, you can, but it must be within the limit of the assignable margin.
The assignable margin is a percentage determined by law to avoid debt, considering that the installments are discounted from the payroll.
For the payroll loan, it is 35%, that is, you cannot commit more than 35% of the value of your benefit to the installments of the payroll loan.
For example, if the value of your benefit is R$3,000.00, your loan installment must not exceed R$1,050.00.
What is a payroll loan for?
The money acquired can be used for whatever you wish, for example:
- Pay debts;
- Undergo medical treatment;
- Renovate the house;
- Travel.
However, it is recommended that it only be requested in case of emergency, so as not to disrupt your financial life.
1. Why take out a payroll loan: Bureaucracy
One of the biggest advantages of loan consigned is that it is less bureaucratic.
In addition to being easy to approve, it can also be requested by people with negative credit ratings and low scores.
As you are an eligible member of the group, everything becomes much simpler and easier to do.
2. Interest rate
We can perhaps list this as the main reason.
We know that one of the advantages of this line of credit is the lower interest rate compared to other loan models.
Even in this model, the percentage may vary depending on each institution, but cannot exceed the ceiling of 2,14% per month, as determined by the government.
So, you have the option to choose which payroll loan has the lowest interest rate among the lowest.
Still wondering why you should take out a payroll loan? Relax! There are still three more reasons to help you convince yourself.
3. No need to go to a branch
A few years ago, this type of service could only be requested at a branch. Some banks still maintain this rule, but there are few.
You can now apply for your payroll loan from the comfort of your own home, at any time.
Without a doubt, not having to take a crowded bus, face lines, find a companion, and face a manager is a huge advantage.
4. Why take out a payroll loan: More time to pay off the debt
With this loan model, you have more time to pay off your debt.
In some cases, it can reach up to 120 months, but this varies from institution to institution. The typical length is 84 months.
With more time to pay, you can get smaller installments that fit your budget without compromising your income.
5. No interest for late payment
That's right! You don't pay late fees and you don't have to worry about due dates.
This is because the installment amounts are deducted directly from the salary or benefit sheet.
Therefore, there is no way to delay, as the amount will be automatically discounted as soon as your benefit is available.
Conclusion
So, you're still wondering Why take out a payroll loan? It actually does a lot of good!
This decision must be made calmly and with financial planning.
You need to ask yourself if this is the only way out, if the value of the installments will not compromise your budget.
Also, check how long your payroll loan payments will be and determine if that's really what you want.
A payroll loan is one of the most advantageous and economical options, however, it should only be requested in emergencies.
Finally, you know what the difference between personal and payroll loans? Read our text and find out!
