The reduced interest rates presented by the payroll loan are one of the most attractive advantages of this type of credit. But do you know the other options?
Clarify why low interest rates on payroll loans and what are the main personal credit arrangements contracted in Brazil.
Personal credit arrangements
Applying for a loan can be a good option for those who need extra money , either to settle an outstanding debt or to cover another expense. However, before hiring a personal loan, it is important to assess which loan modality provides the best conditions . Check below the details of the most widely granted credit modalities in Brazil:
The payroll loan is a modality of credit available to public servants, retirees and pensioners in the INSS. Its main differential in relation to other types of loans is the fact that the amount of the installment is deducted from the monthly rent of the borrower.
That is, according to the assignable margin , up to 30% of the salary or benefit of the policyholder may be directed to the payment of payroll deductible credit. This way, it avoids the super indebtedness of the borrower and the financial institutions have greater guarantee that the debt will be removed. As such, banks are able to apply more attractive interest rates, if compared to other loans, and exclusive advantages.
Unlike other types of credit, personal loans need to undergo a somewhat more bureaucratic process in hiring . That is, you need to contact a financial institution and then wait for a credit analysis. Thus, the institution will review the possibility of granting the loan based on your account history as payer. In addition, your relationship with the market, your income and other statistics are analyzed.
Overdraft is a pre-approved credit limit on the account of a bank account holder. That is, if you neglect your current finances and you exceed your balance limit, you will possibly get the overdraft automatically.
Your account becomes negative and when any amount is deposited, the bank will deduct the loan amount along with the interest amount. Therefore, you have to be aware because these rates can vary between banks, but, in general, they are usually high.
Revolving credit card
Although many people are unaware of this information, the revolving credit card is also a kind of loan . That is, when shopping on a credit card the customer can pay off the full amount of the invoice. But if you prefer, you can only pay the minimum amount.
By choosing the second option, the bank will remove the remaining amount from your invoice as a way to avoid delinquency . Thus, you will be indirectly contracting a loan with the card issuing bank. Consequently, you will pay interest on your next bill in the month.
Loan Modal Interest Rates
Belial has prepared for you a table comparing the interest rates of the main credit modalities, and their evolution over the last two years. This makes it easier for you to choose the best hiring option.
|Modality||Average interest rate / 18||Average interest rate / 19|
|Payroll loan||2.08%||2.10% per month|
|Personal loan||7.60%||8.00% per month|
|Special Check||12.54%||12.60% per month|
|Revolving Credit||13.90||13.94% per month|
Did you see how the interest on the payroll is the lowest and that this type of credit can be a good resource for those who need extra money ?! So do not waste time and know all the ways to hire this fast and secure payday loan modality .