Those in need of money always have doubts about whether or not to take out a loan, for fear of not being able to pay off their debts. A good way to solve your doubts is to simulate a payroll loan.
Payroll-deductible loans are a cheaper type of credit line made for those who work with a formal contract, are retired, or are pensioners of the INSS.
Many banks offer credit simulation online or via the branch so that the customer can know exactly how much he can borrow and not be scared at the end of the month.
In this article, you will find out about the payroll loan and how to do the simulation before signing the contract.
How does the payroll loan work?
Before simulating a payroll loan, let’s explain how this credit line works. When you decide that you need to borrow money, you need to make sure the debt is paid off. At least the banks and finance companies will have this certainty.
Payroll loans become a good ally because the installments leave the payroll even before they land on your account. That’s why this modality is only given to those who have a formal job or receive some benefit from the INSS.
How to simulate payroll loan?
A good way to simulate payroll loans is to use the open simulator on the Central Bank website. See how easy it is to find the monthly amounts of your installment:
- fill in the number of months you want to pay;
- inform the interest rate (the table with the average interest is available on the Central Bank website);
- leave the option “installment amount” blank;
- include the financing amount;
- click calculate.
The result, however, is not the effective value, as the IOF, credit collection fee, and other fees are included.
It is also possible to simulate payroll loans in retail banks such as Itaú, Bradesco, Banco does Brasil, and Santander.
Among the mentioned banks, only Santander does not have internet simulators. The others make it available to account holders. The others need to go to an agency to simulate a payroll loan.
Payroll Loan Advantages
- Lower rates – The payroll loan has lower interest rates than other credits. Valid for emergency situations;
- Easy hiring – if the bank is sure it will receive the installments, it’s just that the whole process is quick and practical, isn’t it? The debt limit is 30% to 35% of what you earn (if it is to finance a property, otherwise, it cannot exceed 20%);
- Long term to pay – if it’s practical, it’s also convenient. Banks offer a longer payment period, which can reach 120 months.
Disadvantages of Payroll Loans
- No right to defer or suspend – once you take out the payroll loan and the installments are discounted, there is no way to defer or suspend the debt;
- Risk of job loss – if you lose your job, creditors will not be able to deduct your salary. Therefore, it is necessary to pay off the debts in full or switch from payroll-deductible loans to personal loans. The interest, in this case, is higher;
- Long-term debt – while you are paying off one debt, another may be on its way thanks to something unforeseen. To keep the loan from snowballing, assess the need to borrow money.
Now you know how to simulate a payroll loan and what are the advantages and disadvantages of taking out this line of credit.
So, if you need money, have a formal contract, or receive some benefit from the INSS, payroll loans are for you!