Did you know that there is an option to retirement loan? This is a special credit line for real estate works. As such it charges interest and allows payment in installments. Learn more below.
Who has never had to give that touch up to the house? Whether to re-make it or to repair a leak, for example. However, works are expensive and the retirement loan it may be a viable alternative.
This is because in the market there are specific personal credit lines for this purpose, whether for support the cost of services as for purchase of building materials.
Despite this, before taking out a retirement loan, planning is necessary so as not to compromise your financial organization.
Since, by choosing any type of credit, you will be “acquiring” a debt that, if not planned, can weigh on your family budget at the end of the month.
In this content we will try to help you understand the retirement loan by showing:
- what are the advantages and disadvantages of the retirement loan;
- what is the deadline for payment;
- interest rate;
- criteria for approving the retirement loan;
Do you want to make a renovation at home, but don't know how? This article can help you.
What is a retirement loan?
The retirement loan is a credit line for those who wish to carry out some type of work on the property, with some characteristics such as:
- attractive interest rates,
- the payment term is usually long,
- there is an approval of higher amounts than in personal loans.
In many cases, the renovation loan can cover up to 100% of the value of the work.
Caixa allows payment in cash up to 35 years, depending on the requested amount and customer profile.
To apply for a retirement loan, however, the person must be the owner of the property.
Advantages of the retirement loan
The retirement loan differs from other credit models mainly in terms of payment facilities such as time and fees. Find out below its main advantages.
High credit value
Whether to change the floor or to expand the property, the renovation loan offers numerous possibilities when it comes to the value of the credit. In fact, this is one of the main advantages for those who choose this type of financing.
Depending on the investor profile it is possible to pay up to 100% of the value of the work, using part of the property as collateral.
From months to years. The time to pay is one of the great differentials of the retirement loan.
At CCSBPE Reforma e Ampliação – Caixa the investor can divide the loan in up to 35 years, depending, of course, on his profile and requested amount.
Thus avoiding that this cost weighs so much on the monthly budget.
Differentiated interest rate
Another great advantage is in the interest rate. After all, in the retirement loan the value is quite different in relation to:
Caixa offers a interest rate of 0.41% per month, that is considered the best in the market.
It is clear that to take advantage of such a low rate, a credit analysis by the bank is necessary.
Read more at: What is credit policy and what are the advantages and disadvantages
Greater control over finances
Many people end up withdrawing from savings or even blocking their investments to start a reform.
However, the retirement loan may be the necessary support to avoid this type of scenario.
This way you do not touch the money saved or invested, and manage to leave it earning in the account to use in possible unforeseen or future investments, such as an emergency reserve.
With this, you use the loan money for retirement and do not compromise your savings. You can even pay the loan installments with the return on your investments.
But to be able to take advantage of this type of loan in this way, financial planning and organization is necessary for you to do not accumulate debts and in the end end up spending what you initially wanted to save.
The disadvantages of the retirement loan
If there are advantages on the part of the retirement loan, it is good to pay attention to the dangers related to this credit line. Check out some of them:
Any loan application requires financial planning governed by an expense spreadsheet.
This is because if there is no cost control it is possible that the debt will become a snowball.
And what was a form of aid ends up bringing a debt that in many cases can be “unpayable”.
So, in order not to live this situation evaluate the value of monthly installments and see if it fits your budget.
High interest rate if there is no research
If on the one hand the low interest rate can be an advantage, on the other hand it is very dangerous. Such that?
The interest rate can often be extremely high if you close with the first loan opportunity that comes before you.
With that, the debt can get much bigger than the initial one and uncontrolled your financial health.
So, know how to use the rate to your advantage, doing market research and comparing the opportunities that each bank offers, to prevent interest from being raised in the retirement loan application.
The retirement loan is often intended for specific issues such as services and construction materials. That is, it is not possible to invest this money in:
- home appliances,
- items for the house.
This barrier is seen as a disadvantage for those who are planning a general renovation of the property. Because, in addition to spending on the work, it will be necessary to have more money to invest in other points to renew the environment.
Discover the main credit lines in the market
We list the lines of credit below when it comes to retirement loans at major banks.
Caixa's credit line – CCSBPE Reforma e Ampliação – stands out mainly for its low interest rate and long payment time.
The retirement loan in this case can be used both in residential as well as commercial properties.
Among the main points of the loan for Caixa's reform are:
- 35 years to pay;
- Interest rate starting from 0.41% monthly;
- It does not limit people who have other financing or real estate;
The main disadvantage is the assessment of the profile of the person who wants to take out the loan. In addition to being often bureaucratic, it determines:
- the value,
- payment term,
- even the interest on the credit line.
Bradesco – CDC Reforma de Imóveis
The Bradesco retirement loan offers a longer term for the payment of the 1st installment and the monthly amounts from R $ 20.00 do not weigh so much on the budget depending on the amount requested for the loan.
We can highlight in this credit line:
- Up to 62 days to pay off the 1st installment of the loan;
- 48 months to pay (4 years);
- 70% of the total value of the work financed;
As with Caixa's credit line, a point that can be considered negative is that everything depends on an assessment of your profile.
So, you will not necessarily get the amount you need. In other words, the bank needs to approve the loan based on the credit analysis of your profile.
Itaú – Construshop
Itaú's credit line allows the first installment of the loan to be paid after three months. In addition, it is possible to divide the amount to be paid in up to 4 years and the interest rate is reduced.
The main highlights of this credit line are:
- 6 months to 4 years to pay the retirement loan;
- Up to 90 days to pay the first installment;
- Interest rate between 3 to 6.01%;
The negative point in this case is that in order to enjoy these benefits from Itaú's credit line for this purpose, it is necessary that the person be bank account holder.
BB – Credit / Construction
BB – Crediário / Construção offers a longer time for payment of the 1st installment and there is no limit to the use of money only for works, it is also possible to invest the value in real estate.
Check out the advantages of this credit line:
- Up to 180 days to pay the first installment;
- Loans of up to 50 thousand;
- Up to 54 months to pay;
The major disadvantage for this credit line is that it is intended only for Banco do Brasil customers with the Ourocard credit card.
Retirement loan: plan before you do
The retirement loan, when done in an organized and responsible way, can be a great support for those who want to give a new look to their property.
Not only that, it also allows people to correct any problem in the house that needs work, such as broken pipes, leaks and so on.
The big secret of the retirement loan, as we can see, is:
- assess the need for the loan,
- his weight on the budget,
- know the various options that the market offers.
We have these three points as the main pillars to make it easier to get a loan while respecting your financial health. Especially because if this is not respected the trend is that there will be indebtedness.
Therefore, even if this type of credit line is quick and even easy to obtain, caution is required.
If you do not want to apply for a loan, or for some reason your application was denied, there is still an alternative: present the on-demand pay system to the company where you work.
It is a corporate benefit that allows the professional to withdraw part of the wage when you need. This offers greater flexibility and financial support for employees.
O HR Consultant UKy is an application that allows employees to anticipate part of their wages whenever they want in a simple and instantaneous way. Believe me, benefits for the company there are also many.
In addition to offering a benefit that generates low cost for the organization, salary on demand is the answer to the question: how to decrease your turnover, increase your productivity and attract more talent?
As a result, it also reduces company expenses with layoffs and labor agreements.
Integration is quick and simple. As soon as your employees register, they can make withdrawals immediately.
Talk to an expert and discover even more gains that your company can make by offering a benefit like the HR Consultant UKy. Learn more in the video below.
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