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Payday loan: understand how it works

In the search for balance in the accounts or to make a dream come true, It is common for people to take out a loan and at that time It is very important to look for options that charge lower fees. In this scenario, the payday loan can be considered a good deal. To find out how this type of credit works, stay tuned in this post, as we will explain everything about the payday loan. Follow!

 

What the payday loan

payroll loan

The payday loan is a type of credit in which the installments are discounted directly from the contractor’s payroll. Thus, the financial institution has greater payment guarantees and may charge more attractive interest rates. In addition to being a good deal for those who need money on hand, it is not the payday loan. do not run the risk of failing to pay the installments, since they have already come discounted from your salary.

 

Who can apply for this type of loan

payday loans

How is the guarantee of the payday loan the monthly income of who hires you, he exclusive for people working with a formal contract, withdrawals and INSS pensioners. Public servers, because they have more professional stability, can get even better rates. In many cases, even  people with credit restrictions are able to hire a payday loan. Those in debt can take advantage of this credit opportunity to regularize their finances.

 

How to get a payday loan

payroll loan

The first thing to do find out if the company you are in Does the company have an agreement with a financial institution to offer payday loans inquire at your company’s HR. Public employees can more easily obtain this type of loan from several banks or financial institutions. To apply for a payday loan, you need to owe attend at the financial institution and present ID, CPF, proof of residence and income. It is necessary to be an account holder of the chosen bank to make the request.

 

What amount can I borrow on a payday loan

payroll loan

The amount that can be requested depends on the client’s income. The monthly commitment cannot exceed 30% of the income. For example, those who receive $ 3 thousand per month of salary cannot pay more than $ 900 in installments. To find out the maximum amount that can be required, s multiply the 30% of the rent by the maximum number of installments that the bank releases. Note that, within that limit, the fees involved in the negotiation, such as interest and administrative charges, are being considered. It is possible to have more than one payday loan at the same time, however, the sum of the installments must respect the same limit.

 

What else Do I need to know to apply for a payday loan

As we have seen, the payday loan offers lower rates and more convenience in payment. However, are you should consider some points before hiring him. fundamental if you plan very well, because it represents a reduction in your salary. Therefore, it may be necessary to readjust various daily expenses, which at even the household budget can be compromised. Another tip So, did you get a better understanding of how the payday loan works If you still have any doubts, let us know in the comments!  enter the Good Lenders loan comparator in the application or on the website to check the best loan rates in the market, in case you do not have access to a payday loan.