The payroll loan is much publicized nowadays for retirees and pensioners of the INSS. Although its greater fame and public are within this list of consumers, the banking system also makes this type of loan available to employees of companies that have contracts with financial institutions. One of the biggest advantages of this type of loan, due to the low default rate, are lower interest rates, since with the security of discounting direct rates from the source of income, the bank then guarantees that it will have the money in hand and partially manages the risks of the loan.
Even with a lower interest rate, it is still high compared to other places around the world. Just like any other type of loan or personal credit, the payday loan is only interesting in the short term or for the payment of higher interest debt, such as credit cards, special checks, transfer of loans and financing, etc.
Retirees and pensioners should take special care with small businesses providing this type of loan, with many good and tempting facilities and promises. Be wary of all of them and research hard before making a financial commitment. Always remember that in desperation we make many bad decisions and that can do us much harm in the near future.
Loans with better rates
The payday loan is a smaller interest option for those who only have interest options on cards and special checks. The rates are lower, but not so low that they compensate for a more consistent use.
Take the contract to a lawyer for technical reading and especially when it comes to acquiring consumer goods. Research and compare the best interest rates before acquiring the payday loan.
The best way to get this loan is always from solid financial institutions such as banks and credit unions renowned in the market. In this way, you are ensuring that your money is not being stolen by people who are acting in bad faith. Now, another important thing is the comparison of the interest rate to the Total Effective Cost, or CET, as denominated by the Central Bank of Brazil.
In all the institutions in which you seek the loan, you must seek all the costs and values for the loan to be made, including here IOF and the interest rate itself. Remember that the company can not charge a credit opening fee as it goes against the consumer’s defense code.
You should note all these costs, installments and interest in order to compare them with calm at home. Do not accept the first proposal you receive. Access the internet and enter a virtual calculator, such as this site. Take the total values, the CET, compare and see if there are any benefits even. Go back to all the stores with the best offer you could get and renegotiate. Thus, you will get the best rates and conditions for your money.
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