How does the payroll loan work? Is it available to everyone?

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How does the payroll loan work?  Is it available to everyone?

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In the time of financial tightening, many people are looking for alternatives such as a loan to pay off urgent debts and not be neglected. Is this your case? The payroll loan for retirees and pensioners of the EHIC has new rules, understand how it can help you at this time.

Do you know how the payroll loan works? He it is a type of loan that is automatically charged to the person's paycheck or social security benefit. In addition, their interest rates are much lower compared to other types of loans.

But just like any other type of loan, it has its specifics and points of attention. Want to know what it takes to hire you? Follow today's post to answer all your questions. Come on?

What is the payroll loan and how does it work?

Payroll loans are a type of loan with guarantees, as their installments are deducted directly from salary or retirement person's. In practice, this means that part of the income will be compromised even before the consumer has access to the value.

For this reason, the interest charged by banks is usually lower when compared to other types of loans. After all, the risk of the installments not being paid is low, since the amount is paid automatically.

However, even though it seems to be a good option for times of tightening, it is necessary that you know exactly how the payroll loan works. Since it is a loan like any other.

He has a consignable margin, which is a limit value that can be discounted. Thus, the amount released will be according to the person's income.

Within this modality, there are two subtypes that you can choose from:

In the first option, you can split the amount up to 84 times and have up to 9 loan contracts at the same time. Interest can reach up to 1.8% per month. The second, however, has maximum interest of up to 2.7% per month.

Who is it for?

The payroll loan cannot be contracted by all people, only for those who have a fixed monthly income.

Thus, only for the following groups:

  • workers with a formal contract;
  • retired people;
  • pensioners;
  • public servants;
  • military personnel.

How to hire payroll loans?

The necessary documentation for the payroll loan is simple, it is enough that the person takes it to the bank:

  • RG;
  • CPF;
  • proof of current residence;
  • proof of current income.

The amount available will be according to the person's income, as it is necessary to respect the consignable margin. This means that there is a maximum amount of wages that can be committed to repay this type of loan.

There is a law, nº 10,820 that determines the maximum value of the installment of this loan with up to 35% of the consumer's salary. In addition, 5% of this limit can only be used on the payroll credit card.

In addition, in order to contract payroll loans, other types of analyzes are performed. A credit analysis is made that considers the applicant's credit score and financial profile.

Do you know what credit score is? If you want to know more about the subject and understand how to increase your score, we suggest further reading of this article.

In the analysis, in addition to confirming the documentation and registering with the EHIC, the bank will basically assess the applicant's consignable margin through the payment statement, which can be easily withdrawn online, in order to offer the terms and amounts of the agreement.

Therefore, it is essential that you keep your data up to date and even consult your consignable margin before applying for a loan. Thus, you will already have a sense of what values ​​and interest rates will be available for your order, which helps you to avoid errors and incompatible orders

Then, if the bank institution's proposal is approved by the beneficiary, the next step will be to sign the contract and send it to the EHIC for registration. All of these steps can be performed online.

Is it worthwhile to hire the payroll loan?

As with any other type of loan, there is interest on the payroll loan. Therefore, it is necessary to assess each type of situation. It can be an ally or enemy of your budget, as it compromises part of your monthly income.

Therefore, it is always necessary to be cautious when hiring. Understand below when it is worth hiring or not this type of loan.

We know that sometimes we need to get out of bigger debts or make a dream come true, like buying a home, and therefore we need to take out a loan.

So, we separate the pros and cons of the payroll loan for you to evaluate if this is a good option for you:

The advantages of payroll loans

Lower interest

The biggest benefit of this type of loan is, of course, the interest amounts. They are the smallest on the market due to the greater guarantee of payment. In addition, they usually have fixed rates, that is, the contractor will know the amounts to be paid at the time of the contract.

Agility in approval

Because they are low risk, credit analysis and loan approval is much faster. On average, after returning the person's credit analysis, it takes 48 to 72 hours for the loan amount to reach your account. The operation is done completely online.

To find out if the payroll loan has been approved, it is enough for the contractor to follow your process through APP or the website of the My EHIC.

Ease of payment

Because it is discounted directly from the payroll or EHIC benefit, the risks of non-payment are reduced. So, no matter if the person forgets the day he is charged, the amount is automatically deducted.

Less risk of default

Automatic payment also reduces the chances of default. Thus, it is not possible for the person to commit the amount destined to the payment of monthly fees with other debts.

Longer deadlines

Financial institutions usually offer longer payment terms on the payroll loan. In some cases, banks offer up to 120 months to pay off debt.

Disadvantages of Payroll Loans

Risks of losing your job

One of the main doubts about how the payroll loan works is this: what happens if I lose my job?

Considered one of the main cons of this type of loan, if you lose your job and work in a private company you will have to pay off the debt in one go.

If this is not possible, you have the option of changing the type of loan, but interest rates are likely to be more expensive.

In addition, it is common for banks to discount up to 30% of the amount received upon termination. Therefore, it is necessary to pay attention to the contract.

Long-term debt

The term for payment of the payroll loan is very long, this can be an advantage or disadvantage for the person. We know that unforeseen events happen at any time and having part of the monthly salary compromised can be a disadvantage.

It is not possible to postpone installments

The discount is made directly from your payment, so you will not be able to postpone or suspend the debt. You may also find it more difficult to renegotiate the loan if you need it.

Are there alternatives to the payroll loan?

By knowing how the payroll loan works, it becomes easier to understand whether or not it is the best option for you.

If you want an alternative for cases of financial emergency, you can count on the option of advancing your salary or thirteenth. But how do you do that?

HR Consultants UKy is a financial platform developed by HR Consultants UK, which can be an alternative to payroll loans.

An excellent option to reduce negative situations, as it allows employees of companies that use the platform to request part of their salary at any time of the month, or ask for an advance payment for the thirteenth, thus avoiding the debt of employees.

When using a salary advance through HR Consultants UKy, the employee pays a fee of 2 to 9 reais, much lower than the interest rates charged for loans, cards and overdraft.

HR Consultants UKy is available to all CLT employees and does not depend on credit analysis.

Now that you know how the payroll loan works, you can choose the best option for your situation. Like other types of loans, it has advantages and disadvantages. Therefore, properly analyze your conditions and financial profile. This is essential in order not to end up becoming more indebted.

Have you taken out a payroll loan? Tell us about your experience with this modality in the comments below!



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