Payroll loans are a great option for INSS retirees or pensioners looking for a loan. It is a very affordable modality with interest rates well below those practiced in the market.
In this format, monthly installments are discounted directly from the benefit of the user who contracts. Therefore, there is no possibility to delay or not pay this amount.
Even with these advantages, if not done in a planned and careful manner, it can compromise the income of those who hire. If so, there is the possibility of requesting a refinancing of this loan, with new terms and values.
How Refinancing Works
Refinancing is recommended for those who have not yet paid off all installments, but are having difficulty paying their monthly debt on time or for those who need a new loan to cover an emergency, for example. In practice, refinancing pays off current debt and starts a new one, changing terms, rates and installments.
By law, the amount of payroll loan installments cannot exceed 30% of the total amount of your benefit. Therefore, renegotiation must also meet this rule. To request refinancing of the contract, you must have a portion of the installments already settled. The requirement may vary from bank to bank, but on average it is ideal that 25% of the installments of the first contract have already been paid.
When is it worth hiring?
If the monthly discount on your benefit is compromising your budget, and you intend to reduce the value of the installments, you can refinance to spread the payment over a new term. Talk to your bank if there is such a possibility, but remember to plan well, as you will pay less but for a longer period.
If you have already repaid most of the installments and want to purchase payroll loans, you can use refinancing to make a new contract and get the loan as long as it remains within the payable margin of 30% of the rent. The bank writes off the old debt, releasing the difference to the consumer.
Credit portability as refinancing
Another option for those who want to refinance a payroll loan is credit portability. In this option, debts made at one bank are transferred to the other, with a new contract, fees and terms.
If you find an institution that provides this service with more attractive financial conditions, you can request your transfer from your current bank. It is also an option to increase your negotiating power when refinancing, by presenting rates and values for a possible counter offer.
In this post you will see what it is, what are the advantages and how to apply for credit portability service.