Payroll Loans: how it works and how to apply

Those who need quick cash to renegotiate debts or pay unexpected expenses, can opt for the payroll loan with a guarantee fund . This type of personal credit offers lower interest rates and is currently offered only by lenders. Find out how the payroll loan works and how to apply in this text!

How does the guaranteed loan work?

How does the guaranteed loan work?

The loan with the use of the Employee’s Guarantee Fund appeared as an alternative for those who need low-interest credit and are not always able to place any asset, such as a house or car, as a guarantee. Fund works as a precaution, if the worker is unable to honor the loan payment, the money in the guarantee fund may cover the outstanding balance. Because of this, the loan using has a low risk for banks and makes it possible for interest rates to be lower, compared to the rates of ordinary loans.

The loan has interest of up to 3.5% and a term of 48 months to pay. This type of personal credit is aimed at workers with a formal contract. The payroll is deducted directly from the worker’s payroll and the benefit amount cannot exceed 30% of the salary.

Paycheck-deductible credit may be equal to or less than 10% of the available amount of the guarantee fund of the applicant, with an increase of 100% of the termination penalty.

For the time being, the only bank that had announced that it would make the payroll loan available with the use of as collateral. This is because a modality regulation was created very recently, which allows to reserve the amounts available in the account, before it was not possible to know how much money the worker had in the fund.

This new regulation allows banks to use the Guarantee Fund, as well as the amount of the severance fine, if the employee is dismissed without cause and the bank is no longer able to discount the payroll loan portion. With this regulation, many private institutions have shown an interest in offering this type of credit, as, as mentioned earlier, it offers low risk to banks. However, no private bank has announced a deadline to start offering this type of credit.

What are the advantages of Payroll?

What are the advantages of Payroll?

The payroll loan has lower rates than a personal loan. For example, the interest on an unsecured loan can be around 4.6% per month. The fees may be even higher depending on the financial institution.

The installment of the loan, as well as the common payroll loan, is deducted directly from your salary or benefit, which reduces the possibility of increasing the debt and you can pay it off whenever you want.

Another great benefit of this type of credit is that the maximum loan amount is calculated according to what you earn in return, the installment cannot exceed 30% of your salary or benefit.

Another advantage of the loan is the agility, in addition to not requiring a guarantor, as soon as your credit is approved it is deposited in your account. Very practical and faster.

How to acquire the loan?

Caixa customers can apply for the guaranteed loan through Internet Banking. Those who are not account holders of the bank can call the call center or go to one of the branches.

See the main requirements made by the box to gain access to this type of credit:

  • Have sufficient balance for the loan in the guarantee fund;
  • The benefit amount cannot be greater than 30% of the monthly salary or benefit;
  • The monthly installments are equal and discounted directly from the salary or benefit.

Need fast credit? Try our online loan comparison. With it you can evaluate the best interest rates and choose the most advantageous loan option for you. Access now and contract your credit online.

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