How Does Online Payroll Loan Work?

Unsurprisingly, the loan has become a very fast way to solve financial problems. Coupled with this, technological advances have enabled the emergence of various tools that made it even easier to apply for a payroll loan online. This mode is ideal for retirees, pensioners, civil servants and CLT workers who need credit quickly, securely and at affordable rates. Interested?

So here’s how you can get a payroll-free payroll loan online.

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Contracting Conditions

In general, the terms of the online payroll loan or card are the same as the conventional model. That is, all rules must be equally respected – this from both consumers and financial institutions.

What the proportional digital medium is more agility in every process. Thus, for example, a loan that is contracted online can be released immediately into the applicant’s account. Understand the advantages of this credit option.

Interest rate

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The interest rate is one of the main attractions of payroll loans and are considered the lowest in the market. This is especially because of your form of payment – which is facilitated by automatic payroll deduction. That is, the payroll loan has its installments directly deducted from the paycheck or benefit.

As the risk of default is lower, financial institutions offer lower interest rates, which is a benefit to those who need to save money. Some companies, such as Best Bank, connect several financial institutions on their platforms. This allows the consumer to research and compare interest rates from various banks to decide which option is best for their pockets.

Note that the nominal interest rates of payroll loans are regulated by Law No. 10,820 / 2003, which limits the collection of each agreement. Currently, the maximum rates practiced are:

  • 2.08% per month for HUBS Retirees and Pensioners;
  • 2.05% per month for Federal (SIAPE), State or Municipal Public Servants;
  • 3.00% per month for Employees of private companies

This amount is considered as the maximum amount to be charged.

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However, it is possible to find banks that offer exclusive terms in the online contraction. Therefore, before closing any deal, it is recommended to research and evaluate the available credit proposals. The same goes for payroll-deductible credit cards, which also have a maximum rate (which ranges from 3.00% to 4.5% per month).

Unlike other credit cards, part of the invoice is paid off automatically for the payroll-deducted credit card.

Payment Terms

Deadlines for repaying the payroll loan online regarding the maximum period, also determined by law. Withdraw and HUBS Pensioners can pay credit within 72 months. Public Servants can install the contract up to 96 months, ie up to 8 years. Deadlines for employees of private companies may vary from 12 to 48 months. This will of course depend on the credit policy of each financial institution.

Installments can usually be diluted over time and do not weigh so much in your pocket. 

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When setting the number of installments of a payroll loan, you should pay attention to the reserve of payable margin. As long as the contract is active, the margin will be committed and it is therefore not possible to make a new loan if it has already reached the limit of 30% of income, retirement or pension.

This amount is calculated based on salary or net benefit, ie, without taxes and other deductions. One advantage of making payroll loans online is to simulate the transaction based on the payroll margin available.

Payroll discount

Given the need to provide financial stability, payers must have an agreement with the institution chosen to complete the transaction.

In this case, the consignment is made between the HUBS, government agencies and private companies. From the endorsement of the contract, the paying institution is also responsible for settling the monthly installment with the bank. When hiring the payroll loan or card, from review to contract endorsement, everything is done online.

Who Can Hire The Payroll Loan Online?

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Eligible for payroll-deductible loans online, are persons belonging to the following categories or agreements:

HUBS Retirees and Pensioners

Withdraw and HUBS Pensioners can take this type of loan as long as they have consignable benefits.

Remember that some pensions are considered temporary, so they are not valid for this type of financial operation. Aid is not accepted either. New rules for the HUBS Payroll Loan are due to take effect soon, so be aware of these. But in general, HUBS Withdrawals and Pensioners who have payroll benefits, payroll margins available and a maximum age of 80 get access to this line of credit.

Public Servers

Federal, State, and Municipal Public Servants (SIAPE), active, inactive, or pensioners, may also take out a payroll loan or credit card. To further illustrate, Public servants included in this type of arrangement are those who provide fixed service to any government agency. Be it municipal, state or federal level. In addition to these are the military of the armed forces that are linked to the federal government through the ministry of defense. Whether they are active military, inactive or pensioners of the military forces of the Army, Navy or Air Force.

Private Company Workers

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Payroll is also an option for CLT workers. For this, it is necessary that the employer company has signed an agreement with some financial institution. To find out if the organization you work for has this type of contract, it is best to check with the Human Resources department. The interest rates charged in this type are higher than those of the HUBS or Public Payroll. However, they are still cheaper than other types of personal loan. Now that you know how to payroll-deductible loan works, simulate and compare rates to choose the best deal for your pocket. Come on?

Want to make a payroll loan?

Best Bank can help you hire the payroll you need! Compare payroll loan proposals from different banks and choose the best one for you.

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