Payroll loan: how it works

Initially, it is through money that we can have a leisure time with our family, buy our own home, pay for our children’s school, and make that dream trip. What is not lacking are products and services available to satisfy our needs, whether for our health, well-being or fun.

So, unfortunately, without money it is almost impossible to get everything we need to have a good quality of life.

Therefore, making a quick and easy loan from a secure source is the best option for getting money to organize your financial life.

In this article, we will talk about Payroll Loan and its advantages.

What is payroll loan?

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Payroll loan is a type of loan in which the payment is deducted directly from the salary or retirement payroll of the person who signed the contract.

For this reason, this type of loan is intended for those working with a formal contract, civil servants and INSS pensioners.

In addition, the monthly salary and retirement allowance discount cannot exceed the 30% limit.

Lower interest rate

On top of that, this type of loan is one of the best alternatives for those looking for cheaper credit.

After all, the financial institution is at a lower risk of not getting paid for the automatic salary and retirement discount and therefore the interest rates are lower when compared to personal loan, for example.

Therefore, it is noteworthy that payroll-deductible loans have a slightly higher interest rate for those who work with a signed portfolio, after all you can be sent away at any time.

However, INSS retirees and civil servants, by contrast, have stability in the receipt of their funds, which makes the operation easier for the financial entity to approve.

How it works?

In addition, in this type of credit the form of payment works as follows:

INSS retirees and pensioners have a limit of up to 72x for repayment of the loan. For Public, Federal and State Employees and retirees and pensioners of Spprev the loan repayment limit is 96x.

We hope that with these tips make your decision easier to contract your loan.

After all, at Best bank Loans we are transparent and seek to make the information always clear to assist in your decision and contracting the payroll loan.