Refinancing or refinancing the payroll loan can be an option for those who need to save and need money, without much paperwork.
Did the loan installments begin to weigh in the pocket? Do you need to make that financial replanning of debts and do not know where to start?
Discover the benefits of refinancing loan agreements.
But, what is payroll loan refinancing anyway?
Payroll loan refinancing is a way to get credit, from the current loan, without the need to take on a new installment .
This is an alternative for those people who have already taken away part of the payroll agreement and who need new credit. In this case, deciding to stay in the same bank as well.
The partial discharge of the consigned loan installment gives the consumer the option to refinance the contract and get more money out of pocket, paying the same amount monthly
Example: A loan with 48 installments to pay, can be refinanced in the original term of 72 installments. The bank will write off the debt, freeing the difference (change) to the consumer.
The refinancing of payroll loans, also called “refin”, is governed by Law 10,820 / 2003 , which regulates the payroll loan.
How to refinance the Payroll Loan?
The refinancing is the renegotiation of the debt in the same bank, returning to the original term. This operation removes the current payroll and begins a new contract, releasing more money.
To refinance the contract, it is necessary to have part of the installments paid (average between 15% -30% of the installments).
As the installments are paid, the debtor balance will decrease and the limit will increase .
When refinancing the agreement, the current debit balance is settled and the difference is released as new balance, in account.
- Amount of the Payroll Loan : R $ 5,000.00
- Current Debtor Balance : R $ 3,500.00
- Contract term : 60 months
- Number of parcels removed : 20 parcels
When refinancing the loan in the amount of R $ 5,000 the bank removes the remaining 40 installments, releases a new loan of 60 months and the consumer gets the difference of R $ 1,500.
The change is released to the indicated account, within 2-5 business days, on average, depending on the bank.
The more installments have been paid, the greater the amount (limit) released. The amounts released will always be in proportion to what has already been paid from the current loan .
Some banks may establish a minimum change, that is, minimum value for the transaction.
Refinancing can be carried out by the categories benefiting from payroll deductible loans : Retirees, Pensioners, Public Servants, Armed Forces Military and Private Enterprise Workers.
The maximum term of the refinancing is the same as the payroll agreement, with 72 months for INSS beneficiaries, 96 months for Public Servants and 60 months for Armed Forces .
To refinance the payroll loan contract, the consumer can either look for the bank of which he or she is a client or conduct an online simulation to evaluate the terms and amounts.
The proposal will be re-evaluated by the proposing bank and will be reviewed again.
Since payroll deductible credit is automatically debited from the paycheck or INSS benefit , the consumer does not have to worry about paying bills or invoices.
How does the Payroll Loan work?
The value of the parcels will generally remain the same, but depending on the number of parcels paid, there is also the possibility of achieving a lower interest rate.
With this it is possible to have a smaller portion, also releasing consignable margin .
Which contracts can be refinanced?
In practice, any payroll deductible credit agreement can be refinanced, provided that it has been paid in part.
Today most banks already attend this type of operation and have an agreement with INSS and SIAPE. Thus, both Retirees, Pensioners and Public Servants can acquire new credit without much bureaucracy.
In some banks it is possible to refinance more than one contract into a new contract. The average term to complete the transaction is 3-5 business days.
When to do a loan refinance?
Basically, the refinancing is indicated for those who have a financial budget already committed, do not want to pay another installment or already have their assignable margin used.
Some of the advantages of this operation include:
- Maintain the same value of the parcel ;
- Possibility of interest rate reduction;
- Release of money (change);
- Without consultation with SPC and Serasa ;
- Refinancing with negative margin;
And when the matter is won for the consumer who already has at least one contract, another option may be the portability of credit , which exchanges the current debt for a smaller one in another bank.
What is the difference between debt refinancing and credit portability?
Although both operations can be easily confused, both refinancing and credit portability serve different types of needs. Know more!
Credit Refinancing: Credit renewal (contract) with the same bank
Credit Portability: Transfer of payroll loan (contract) to another bank
Creditor financial institution
Credit Refinancing: same bank
Credit Portability: New Bank
Contractual conditions that can be changed
Credit refinancing: interest rates and terms
Credit portability: interest rates
Value of plots
Credit Refinancing: Can be maintained or reduced (due to the reduction of the interest rate)
Credit Portability: Can be reduced (due to the reduction of the interest rate)
Release of change
Credit Refinancing: Yes
Credit Portability: No (only in some cases where portability and refin are done)
Minimum term for operation
Credit refinancing: Average 15% -30% of the installments paid (may vary depending on the policy of each bank)
Credit Portability: Any time of the contract (except leasing contracts where it is necessary to respect the minimum term)
Completion of the operation
Refinancing Credit: On average 3-5 business days
Credit Portability: On average 15-20 business days
Responsibility for discharge of previous debt
Credit Refinancing: Own Bank
Credit portability: Operation between banks (Bank B, withdraw the loan at Bank A)
Transfer of cost of the customer (new operation)
Credit Refinancing: Exempt for the customer
Credit Portability: Exempt in some cases (except for notary fees, valuation of property subject to guarantee and possible legal consequences. Some banks may also charge a fee to open credit)
Credit Refinancing: Yes
Credit Portability: No
Credit portability has more flexible rules, however, the refin has shorter operating deadlines and is a faster option for those who need money again.
Thus, the two main cautions to be observed when deciding to refinance debt or carry credit are:
- Comparison : Always compare operations to evaluate Total Effective Cost (not just the interest rate);
- Deadlines : consider all deadlines of the operation and verify if they meet the need;
By following these basic steps, you can take advantage of the new contract. And better: still make a good deal, really saving.
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