Those who seek paycheck loans are usually in need of money with some urgency. Unforeseen happen, but know the 7 reasons not to let your Payroll Credit proposal expire!
Did you simulate and did not complete the process? Did you have to postpone contracting the payday loan? Know what happens when the paycheck-deductible loan proposal expires, that is, it loses its validity.
What happens if the Payroll Credit proposal expires?
The main implications when the payroll loan simulation is past due or canceled are:
1) Validity of the interest rate
Although the interest rate of this type of credit is regulated by a ceiling, the rates may change.
The payroll loan interest rates are updated with some frequency by the banks themselves, depending on the commercial policy .
This amount can vary from bank to bank, however, can not exceed the limit established by the Central Bank .
The interest rate charged by the consignee entities, considers the Total Effective Cost (CET) , that is, the sum of all costs involved in the operation.
2) Ensuring the best conditions
The proposal and simulation of credit , usually has an expiration date, precisely to guarantee the best conditions for the consumer. The average shelf life is 7 to 15 days.
The deadlines for payment of the loan do not change, that is, regardless of the simulation date, Retirees and Pensioners have up to 72 months to pay the installments of the loan and Public Servants up to 96 months .
3) Validity of the consignee authorization
The authorization of consignee of the loan for Federal Servants – SIAPE, which is issued by SIGEPE is valid for 30 days.
After this period, the Server must issue a new authorization that is valid for another 30 days. With each new hire a new authorization must be issued.
For the consigned credit card the issue is unique and without expiration date .
As the authorization is issued by name, ie on behalf of a bank, if the consumer withdraws the application for the paycheck-deductible credit card or decides to change the bank, he must request the cancellation of the previous authorization.
4) Need for new simulation
If the credit simulation proposal expires, it will be necessary to carry out a new simulation , especially according to the assignable margin .
Since the assignable margin is associated with the maximum amount that can be committed from the monthly net income, every credit analysis considers the value of the current income .
Thus, at the turn of the month or long after expiration of the validity of the proposal, there may be changes in the paycheck, retirement or pension, affecting the value of the rent and consequently the value of the margin.
By changing the margin value, the allowable value for use is also reduced which decreases the amount of credit released.
This is because the total of all installments of the consigned loan (s) can not exceed 30% of net monthly income.
5) More time to have the money in the account
The longer it takes to close the contract, the longer it will take to get the money out of the account .
The money can only be released after the endorsement of the contract , which is one of the last stages of contracting the payroll loan.
This process, which is carried out by the bank itself, only occurs on business days . Therefore, if the calendar still has a public holiday or optional days, the credit will only be released on the next business day.
6) Extension of credit portability
Credit portability , which is the process of transferring credit to another bank, is an alternative for those who are borderless and want to pay smaller installments of the loan.
In order for the process to be completed, the new bank must repay the current loan at the issuing bank. In this way, it assumes the new debt and releases the new contract to the client.
This can take up to 15 days. That way, if the proposal expires, portability will also be extended.
This fact may not seem so important, however, when talking about economy, who feels the most is the pocket. And every penny saved can make a difference!
7) Delay in the release of the refinancing change
The refinancing of payroll loans , also called “refin” is another alternative for those who need new credit, without the need for new hiring.
The operation may release a balance or change to the customer. Thus, the sooner closed the proposal, the greater the guaranteed that the money will also be released into account in less time.
Why is it important not to let the credit proposal expire?
In addition to the reasons and implications mentioned, it is important not to let the credit proposal expire so that it does not negatively impact financial planning.
As in many cases, payroll loans are used to pay off more expensive debts , it is imperative to prevent debts from increasing due to the collection of interest.
Read also: 7 reasons for you to hire your Payroll Loan now
The recommendation is always to negotiate debts with the banks themselves, so they do not see a “snowball” . Thus, the credit received can be used to “clean the dirty name” or pay off other older debts.
Now if the money will be used to buy a vehicle, give entry to the house or travel , have an advance planning keeps the plans planned and avoid scares and surprises at the end of the month.
And for this, of course, it is very fundamental not to let the proposed paycheck credit expire.