For those who do not know how the Payday loan works, it is a credit modality where retirees and pensioners borrow money from a financial institution without needing a guarantor and applying low-interest rates.
If you need extra money to pay an account or make purchases, the Payday loan can be your best way out.
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The payday loan application at https://www.onepayday.com/ is done in the same way as the conventional personal loan. The beneficiary contacts the bank and makes the request, either through the website, the agency, or the call center.
What distinguishes consigned loans from ordinary loans is mainly their form of payment. In the case of Payday, the value of the installments is automatically deducted every month from the benefit of the borrower.
For this discount to occur correctly, the policyholder must have a proven fixed income. Therefore, the benefit is exclusive to retirees and pensioners, federal, state and municipal civil servants.
All the operations carried out by banks imply interest rate applications, which in some cases are exorbitant. Conventional personal loans, for example, amount to as much as 20% a month.
The Payday loan interest rates, on the other hand, are one of the lowest in the market, varying around 3% per month. This is due to the security that banks have about the effectiveness of payments. That is, the greater the certainty of payment, the lower the interest rates charged by the bank.
The Central Bank has restrictions on Payday, established as a security measure of the credit institution and financial health of the borrower. According to him, the value of the portion of the loan should not exceed 35% of the beneficiary’s income (30% is allocated to the Payday loan and 5% to the consigned card). This limit is called the assigned margin.
This ensures that the borrower is able to pay off the payments, without risking becoming indebted. You can request up to 9 loan lines in different banks, as long as the value of the installments does not exceed the margin limit.
Financial institutions are more flexible about paycheck lending. The borrower can split the payment into as many times as necessary, within the stipulated limit. There are up to 72 installments for retirees and pensioners of the INSS and up to 96 for public servants. However, the parcel boundary may vary from bank to bank.
The payment is debited from your benefit every month by the lender. Therefore, the default rates of this type of credit are always low.
Advantages of Payday Loan
In addition to being one of the cheapest credit lines on the market, the Payday loan has other advantages.