Payroll loan: find out if it's right for you

First of all, one of the most popular loan types in Brazil is payroll loans. It's one of the most advantageous options on the market, with interest rates up to three times lower than regular loans.

A payroll loan is a type of credit in which the installments are deducted directly from your payroll, that is, from your salary, retirement or benefit.

This type of loan carries a lower risk for the bank, resulting in lower interest rates and more attractive repayment terms. The main users are civil servants, retirees, and INSS pensioners. Currently, some banks also offer payroll loans to CLT employees, provided there is a partnership between the financial institution and the employer. 

What are the features of this product?

• Lower interest rates: as the company granting the credit deducts the installments directly from the salary or benefit, the risk of default is lower, which makes it easier to charge a lower interest rate;
• Ease of hiring: There are few documents required and today you can hire directly through apps or official websites of financial institutions;
• Installments always equal: At the time of signing, the interest rates, total installments, and the amount of each installment are already established. Typically, the installments have a fixed amount. 

It's worth remembering that conditions vary depending on the customer's profile and the company's credit policies. So, pay close attention to the details. 

Who can take out a payroll loan?

Typically, payroll loans are available to the following groups:

• INSS retirees and pensioners;
• public servants and pensioners in general;
• military personnel and pensioners of the Armed Forces;
• workers with a formal employment contract (CLT regime).

How to find the best payroll loan?

There are many ways to find companies that offer this type of credit. We at Geniuzz recommend bxblue, a digital platform that helps you compare and find the best offer for your profile.