Although these are well-known financial operations, many people still have doubts about the differences between personal loan and payroll loan. Therefore, we have prepared an article to clarify, once and for all, the differences between these two types of loans and which one is most appropriate for your profile. Check-out!
The Personal Loan
Also known as personal credit is one of the easiest forms of lending facilitated by banks, but with higher interest rates than other types of credit.
This is because banks and lenders make this type of unsecured credit line, relying only on the “good name” of the loan contractor. Even so, it is still a cheaper interest loan than a credit card or overdraft.
The personal loan works like this: Anyone who needs money because of any unforeseen or urgent need goes to a financial institution and applies for credit without the need to prove its purpose.
After the evaluation, which is usually simple and quick, the loan is released. From there, the customer can pay the installments by direct debit, postdated check or bank slip.
According to the bank , personal loan interest rates average 8% per month, ranging from 1.27% to 26.39% per month. Therefore, it is important to do a lot of research before hiring personal loans, allowing you to save on interest over installments.
The Payroll Loan
The payroll-deductible loan, or payroll-deductible loan, has its installments taken directly from the contractor’s salary or retirement. This allows the financial institution to be more secure when it comes to getting the money back, which translates into larger loan amounts and lower interest rates.
The bank estimates an average interest rate of 2.5% per month for payroll-deductible loans, ranging from 1.29% to 5.28% between the cheapest and most expensive interest rates on the market. Therefore, much smaller than the personal loan.
Because it is a bank-safe and consumer-friendly line of credit, payroll-deductible loans are an important credit tool for individuals . Anyone who works with a formal contract, civil servants and withdrawals and INSS pensioners can hire.
But which one is the best anyway?
If you work with a signed portfolio and can pay the payroll loan, give preference to this type of credit, because the interest rates are much lower.
In addition, payroll-deductible loans avoid borrowing, financial institutions are limited to granting credit up to a maximum of 30% of salary.
The personal loan, in turn, has no value limit, leaving to the contractor the payment of the amount credited in the agreed terms for the installments, besides the addition of much higher interest, even if this is beyond the consumer’s financial capacity.
Business owners can offer payroll loans to their employees or collaborators, allowing them to take out credit at a lower interest rate if the need arises.
To learn more about this, contact us as we can help your company solve its employees’ financial problems. Clarify all your doubts!
You can also register your company and offer this benefit to your employees.