Can a worker with a formal contract make a payday loan?

Can a worker with a formal contract get a payday loan? Few people know that payday loans are available to employees of private companies. And to have such a right, there is no need even for a minimum of signed wallet time. The payday loan has a big difference compared to the personal loan. Every month your monthly payment is directly deducted from the customer payment. But to be hired, borrowers need to provide fixed and guaranteed income.

Therefore, payday-deductible loans are only available to Public Servants, INSS beneficiaries and Armed Forces Military. However, some private sector companies also have agreements with consignees to make credit available. If you are a private sector worker or employee with a formal contract, ask all your questions right now. Throughout this content you will understand how the payday loan works and find out if you can apply for it.

What is and how does the CLT Worker Private Payday Loan work?

Payroll Loan work?

The payday-deductible loan has been available since 2003, in accordance with Law No. 10,820. This is one of the fastest growing credit models in Brazil, mainly for its practicality. The borrowed money can be used for any purpose according to the needs of each client. The return to the financial institution is made through monthly payments, paid automatically. That is, when a private sector worker applies for payday deductible loans, the employer must maintain agreement with the payee. Only in this way, the discount payment can be linked to the salary, after the endorsement of the contract.

Every worker interested in hiring a payday loan needs to initially go to the company’s Human Resources department. This team should inform with which financial institutions there are agreements in force. It is important to emphasize that no company is required to offer this type of benefit to its employees and that this type of payday is optional, that is, optional for each employee. Currently several banks already provide private payday loans. To hire, the customer simply has to choose from those who have an agreement with the employer, according to the best offer.

There is no rule that stipulates the duration of the signed portfolio to qualify for this type of loan. However, some criteria may vary according to each bank’s credit policy.

Just like any personal loan approval, the worker will pass a credit assessment. The advantage is that this assessment is not subject to consultation by the Credit Protection Agencies and is less bureaucratic than in other processes.

Find out now what are the main differences between payday and non-payday loans (and why you should go for the first one!).

Key Differences Between Payday Loans and Credit Loans

Payroll Loans and Payroll Loans

The major difference between deductible payday and deductible payday loans is the form of payment. As has been said, payday-deductible loans are automatically paid every month through scheduled discounts. Thus, every borrower before receiving his payment, whether salary or benefit, already repaying the portion of the loan. This avoids delays and delinquency, which allows payday loans to offer some advantages over personal lending, such as cheaper interest rates.

This difference can reach more than 15% per month in some cases, when compared to credit card, for example.

Key Advantages of Private Payday Loan

Private Payroll Loan

The payday-deductible loan is considered a low risk operation for the financial institution. Therefore, interest rates are lower than other credit products. Therefore, the private company worker finds average interest of 2.14% per month. This amount is slightly higher than that charged to INSS beneficiaries or Public Servants. However, the rates are still much more attractive than credit card or overdraft, for example.

Another big advantage is that the payday loan is released without consulting the SPC or PERASA. This is because the guarantee of its discharge is the agreement between the company and the consignee and not the credit situation of the customer. This modality is still very practical. To borrow the payday loan few documents are required. Normally RG, CPF, proof of residence and proof of income are sufficient.

Main Disadvantages of Private Payday Loan

Main Disadvantages of Private Payroll Loan

This modality has several advantages. However, the private payday loan is not easily released as the loan assigned to other categories. This difference happens because workers with a formal contract, regardless of the length of their period, do not have the same stability as a public servant, for example. As such, the customer may be denied credit by the bank. Another disadvantage of private payday loans is that the borrower cannot decide how much to borrow. That is, who defines how much can be given is the company and the bank.

This amount is decided based on the employee’s salary. Legally, no matter how long a contract worker has, he can only spend 30% of his paycheck on payday loans. This ceiling is called the consignable margin. The payable margin also includes another 5% of salary. However, this amount can only be used with a payday credit card, another payday product that is available for the same eligible categories. It is also important to remember that the employer company needs to be contracted to the banks of interest. That is, even if the employee has already signed a fixed term, if the company has no agreement with any bank, it is not possible to apply for credit.

Another caution that the worker needs to take is regarding leaving the company. If fired or resigned, the employee will have to repay the loan, repaying all that is missing. The company may, for example, deduct any remaining amount directly from the amount the worker has to receive compensation. Another recently approved alternative is to use FGTS to make this discharge. Although some economists do not advise using it for this type of expense, this may be the immediate way out for the worker to pay the bank. This will also avoid debt or default.

How to borrow in a planned manner

How to borrow in a planned manner

Before hiring any kind of credit and taking on new debt it is advisable to do some financial planning. Without it, the money that should help in a situation can end up further compromising the personal or family budget. The payday loan needs specific planning. As the monthly payments are automatically discounted, the policyholder receives less for a while. That is, anyone who wants to contract a payday loan needs to plan to have a lower salary for as long as the contract is in effect.

To help with this decision making, some tools like payday loan simulator can come up with several proposals from different banks. An online payday loan simulation allows the worker and anyone interested to compare interest rates and repayment terms and other conditions of each loan. This makes it much easier to choose which financial institution to apply for a loan. Now you know how private payday loan works. Need money fast, easy and secure? No matter what your wallet time is, check with the HR department today and find out which bank you can borrow.

After that, just use the online credit simulator to compare the best deals. Besides being practical, the simulator is free and within minutes you will receive personalized proposals. Done for you! Thought for what fits in your pocket!