Payroll loan is worth a yes! Understand!

As one of the most cost-effective lines of credit in the market, payroll-deductible credit is a great option for those who need a loan. Understand how payroll works and check out our tips on this line of credit to make the best use of it.

What is payroll loan?

What is payroll loan?

Before you know more about all the benefits of payroll loans, you need to know if you fit your requirements. The payroll loan is granted by financial entities to: civil servants, employees of private companies, pensioners and retirees.

It is also a type of loan whose payment is deducted directly from the paycheck or benefit received by the INSS. Since the discount is automatic, payroll deductible loans are recognized as being cheaper than other lines of credit, as there are fewer default risks. In addition, it is usually faster because it requires less paperwork.

When is the payroll loan payable?

When is the payroll loan payable?

Because of its fees, payroll is worth it for those who had an unforeseen and need credit, or for investments with a good return estimate, such as renewing your business stock or even opening one.

But remember: the payment is deducted directly from your benefit or payroll. If you think the installments will impact your monthly income, better look for another option.

Who has dirty name can apply for payroll loan?

Who has dirty name can apply for payroll loan?

As with every loan or financing transaction, the bank can do credit analysis of the applicant. However, in payroll-deductible loans, for example, there are loans available for negatives, as there is no consultation.

It can be a great chance for anyone who wants to clear the name with low interest rates.

Is there a limit to payroll loans?

Is there a limit to payroll loans?

Yes, and it is established in Law 10.820 / 2013. The amount of the payroll portion may not exceed 35% of the salary or benefit of the credit applicant. So let’s say your benefit is USD 2,000. Then, the maximum monthly fee will be limited to USD 700.00.

When isn’t payroll credit worth it?

When isn

Just as there are interesting times to get a payroll loan, there are also unfavorable situations. To make trivial use of money such as day to day shopping is not recommended. If your monthly expense is above what you can afford, do not seek loans to cover it. The most recommended way here is to cut spending or look for alternatives to increase your income.

Now that you know what it is and when payroll is worth it, we hope to have helped. And if you want more tips like this to plan your financial life, stay tuned on our blog .

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