Hiring a payday loan is an increasingly common form, even online. After all, it has become simpler to simulate the loan, which makes it easier to know banks, interest rates, terms, and even other conditions.
However, not everyone has access to these features, not having knowledge about the subject and suffering from all the details. In a way, lots of information is required when dealing with the loan.
However, you do not have to get lost, because by following the article you can understand a little more about paycheck loans. Find out what it is, how it works and how to use it!
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The payday deductible loan is recorded as a loan that counts with a payment discounted directly from the fixed income in the current account and INSS benefits. In this way, it is accessible to beneficiaries (retirees or pensioners of the INSS).
However, it is also accessible to public servants and employees of private companies contracted with a financial institution.
Its ease and speed of hiring make it one of the modalities more accessible to the public since the bank counts on the guarantee of direct debit. In addition, an instant payday loan at paydaynow.net also has the lowest market rates.
How does payday loan work?
Loan installments are charged directly to the fixed salary or INSS benefits, ie, payday deduction occurs. However, the amounts collected should never exceed the limits of the assignable margin (never above 35% of income).
If this occurs, by contracting another line of credit after all contractible margin (35%) committed, the limit of the loan to the contractor decreases, producing even higher interest rate expenses. Thus, it is common for even over-indebtedness to occur due to margin compromise.
How does payday loan calculation work?
To begin with, it is understood that the payday loan works under the assignable margin, with the installment amounts being debited directly from the account. However, the amount should never exceed 35% of income, so as not to affect the margin.
This discount sheet allows for lower rates, but the value does not change, even in times of crisis – and therefore 35%. Thus, the total calculation of the assignable margin is:
Margin assignable = Total value (net) x 0.03
The amount charged is 0.03, as only 30% is available for the payday loan – the other 5% turn to the payday deductible credit card. The 35% is the sum of the installments of the payday loan.
As for the loan installments, they are calculated in simple ways: Person A receives monthly R $ 1,500.00. 30% of this income is about R $ 450.00.
However, each contract made carries a bank-defined interest rate, which usually varies greatly between each. The higher the interest rate, the lower the amounts that can be borrowed.
Likewise, the longer the term, the higher the limit. However, the rate can not exceed the current 2.05% for beneficiaries and 2.08% for public servants.
And how to calculate the interest rate that the bank can impose on the contractor? Through online simulations
How does payday loan simulation work online?
The use of online simulation works in a simple way since it only needs to be identified within a group of possible contractors. Common documents for identification are RG, CPF, proof of residence and paycheck.
In the simulation, its agreement and the value of its benefit are identified, so that its limit is calculated. In this way, the available proposals are listed, as well as the interest rates that each bank proposes.
In fact, this is one of the advantages that the payday credit simulation brings:
Comparison of interest rates between banks;
Identifies the Total Effective Cost of the loan;
It presents the best deal, with better contracts and smaller installments;
Simulation and hiring can be done online;
Agile credit analysis and release;
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What is INSS payment statement?
Discounted loan on the sheet or account?
Is a payday loan for everyone?
The loan is directed to INSS beneficiaries, such as retirees and pensioners, as well as public servants and employees of private companies contracted with a financial institution.
Anyone with a negative name can rest easy, since considering that the payday occurs with the parcel being debited directly from the account, it is common to be granted.
In addition, it is also possible to make more than one loan, as long as it fits within the parcels without exceeding the limit of 35% of the rent.
For contractors outside the aforementioned groups, it is possible to count on the payday loan service, but at higher rates.
Advantages of Payday Loan
The interest rates on payday loan contracts are among the lowest in the market. This is due to the trust of the bank or institution since the portion is debited directly from the salary or benefit received.
With a guarantee of payment, the bank or financial institution usually presents less bureaucracy to grant the credit.
More friendly deadlines
Payment terms are usually very attractive to the contractor and can be extended to the maximum he may want.
Disadvantages of payday loan
With long terms (up to 72x for INSS beneficiaries and up to 120x for Public Employees), it is common that in some months the value of the plot cannot be counted. Despite having the 35% limit within the consignable margin, this often occurs – and debts arise.
Risks in employment
In the case of unemployment in a private company, the unemployed person will have to repay the loan at the same time or change the paycheck (higher rates). This is common for a contractor who is an employee in the privately agreed company.
No possibility to pay ‘from back to front’
As the leaf discount is made, that is, the parcel is debited directly from your payment, it is not possible to advance payments, as is done in tickets, for example, paying the last installment along with the monthly installment to obtain the discount.
When should the consigned loan be counted?
Understanding how it works, as well as its advantages and disadvantages, it is easy to see how the payday loan can be positive or negative. Although it is one of the best rates in the market, caution is still needed.
It is important to consult the payable margin with your salary or benefit, as the installments are automatically debited.
And you should still rely on the interest rates charged by the bank, whether for changes in the term, installment, and other details.
Finally, it is important that you make a trustworthy simulation before making any decision regarding the payday loan. That way, you have one of the best options on the market without risk in the future!