Payroll loans are a great way to get cash to help cover an emergency or achieve a specific goal. There are several ways in which it can be done, and one …
Payroll loans are a great way to get cash to help cover an emergency or achieve a specific goal. There are several ways in which it can be done, and one of the most advantageous is payroll-deductible credit to a private company. Let’s see how it works.
What is payroll loans?
Payroll-deductible credit is a form of credit that has its greatest advantage at lower interest rates. This is because it is made for people who have a fixed income, are retired by the INSS, military and civil servants and professionals with a formal contract. The loan payment is automatically discounted when the individual applying for it receives your benefit.
This means that payroll loans are beneficial to both sides. Because of the guarantee that the payment will be made on time, as it is taken directly from the employees’ payroll, banks have a much lower risk in this type of credit, causing them to offer very low interest rates.
This amount of interest may also vary depending on the case such as the applicant’s profile, the amount and the characteristics of the financial institution itself. For example, civil servants and INSS beneficiaries have an even lower interest rate because of the even greater security of their income.
But even so, for the private employee these values are still quite small and advantageous. In addition, automatic payroll deduction means no need to worry about payment avoiding late or default problems, and this model makes it even easier to get credit because you have an agreement with a financial institution.
How to apply for credit?
The way you apply for payroll loans also varies from other modalities. In this case, the employee needs to contact their company HR directly to see which financial institutions they partner with. Check out our website and see how can be an excellent partner for your company and guarantee a fair loan to its employees.
As for the value, the limit can be determined by the company, in conjunction with the bank. The financial institution will base its salary to calculate how much can be paid per month, peaking at 35% of income. Thus, based on these amounts and the payment time, the amount of payroll-deductible credit to a private company is calculated.
However, there is one more important detail, of these 35%, 5% is reserved for exclusive use on credit card.
What happens in cases of dismissal?
In cases of dismissal, the debt is still charged. In this case, the debtor has the option of negotiating with the bank a new form of payment or completely repaying the amount due.
Normally, in payroll-deductible loan agreements for a private company there is a clause stating that 30% of the value of the contract termination during dismissal is retained by the bank in order to pay off the debt.