Payday Loan: What is it and how to contract?

The payday loan is a type of personal credit that is deducted directly from the payroll of the beneficiary and which has lower interest rates. Who can hire payday loans? How it works? How much? Know everything here!

How does the payday loan work?

How does the payroll loan work?

The personal loan, as we mentioned at the beginning of this text, is deducted directly from your salary, pension or retirement and does not need a guarantor.

Payday loans offer the lowest rates on the market because banks and finance companies consider them to be low risk credit. The rates can vary from 1.52% to 2.13% per month, according to data from the Central Bank. However, the amount of the installment cannot exceed 30% of your monthly income.

Who can hire payday loans?

Who can hire payroll loans?

Workers with a formal contract, retirees and pensioners can contract the payday loan simply and quickly. The age limit is up to 80 years old and minimum 18 years old, but you need to have your fixed income proven.

To hire the best credit option you must research the rates practiced in the market and choose the ideal bank or financial institution for your profile and your pocket.

The next step is to run a loan simulation and see which payment term best suits your income. The installments are fixed and the maximum term to pay is 96 months.

Pay attention to the requirements and clauses for the granting of the Payroll.

To receive the benefit you need to have a checking or savings account in your name and not necessarily with the institution you apply for the credit line.

5 Advantages of the payday loan

5 Advantages of the payroll loan

  1. Avoids indebtedness – Because it is deducted directly from your payroll, the payroll-deductible credit, in addition to ensuring more security for the creditor, also guarantees more security for those who are applying. Because there is no way to stop paying the loan installments, this way you avoid a bigger debt and you can organize yourself better financially.

  2. Less bureaucracy – It is much less bureaucratic, because of that, hiring is much faster and simpler than the other lines of loan. The Payroll does not require much documentation, you do not need to have an account with the bank that is requesting the credit and usually the money falls into your account in less than 48 hours.

  3. Fixed amounts – Another great benefit of the payday loan is that you can plan financially over the long term. This is because the payroll installments are fixed, so there is no surprise at the end of the month. You get to know how much you are going to pay and how much money is left over.

  4. It has the lowest interest rates on the market – As previously mentioned, considering that the chance of you not paying the payday loan is almost nil, the rates for this type of loan are much lower. They are generally the lowest interest rates on the market, compared to other modalities. So it’s super worth it.

  5. It can help to clear your name – You can settle higher debts with the payroll, as your interest rates are the lowest in the market, it pays off to take a payday loan to pay off another high interest loan, for example, the overdraft.

Despite all the advantages of payday loans, remember that it is still a loan and has interest. So be responsible and only apply for a loan if necessary. Do the math well before hiring a credit, so you don’t have to run out of money.

What documents are needed to contract the payday loan?

What documents are needed to contract the payroll loan?

Now that you have researched which best loan for you, which loan with the lowest rates and the term that each finance company offers, it is time to apply for your loan.

Gather all the documents listed below and make your request: * RG; * CPF; * Proof of income; * Proof of housing.

You can simulate and contract payroll deductible loans over the internet, there is no more need to go to the bank or a finance company. Consult our comparator for this. This way, it is easier to get a sense of how the loan will be contracted.

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