When the individual already has a payroll loan but is going through some situation that makes it impossible – or even harder – to meet the agreed conditions, it may be interesting to look for alternatives, such as refinancing.
Refinancing is nothing more than exchanging the old contract for a new one at the same financial institution, being possible to make changes in term and contracted value.
What are the advantages?
Refinancing your payroll loan from your financial institution can be advantageous for several reasons. Below we list the main ones. Keep up!
Less red tape
Because you are already a client of the financial institution in question and already have an ongoing contract with that company, the paperwork and paperwork required is much smaller. Because the bank-customer relationship already exists and is solid through a contract, refinancing is a much simpler process than a new one, starting from scratch.
Faster value release
Similarly, if approved, the total contracted is released much faster – because the bank already knows it and already has all the information needed to make the loan.
Possibility of change in value
If you already have a contract but need more credit, refinancing is the best option. Upon request, the financial institution will analyze its payroll margin to see how much is still available and thus approve or not the refinancing.
Realized that it will no longer be possible to continue with the parcels in the value they currently have? You can ask for a longer term, for example, to further dilute the amount to be paid over time.
This is very useful in cases where a contingency occurs that demands resources from the contractor or even when the person recalculates the family budget and realizes that a timeframe of 72 rather than 60 months would have been better.
How to make?
If you were interested in refinancing, you know that it is very simple to do so: just talk to your financial institution, with which you already have your payroll loan agreement signed, and express your willingness.
As mentioned, the approval of a new amount is subject to an analysis of its payroll margin – that is, the bank must verify how much of its 35% of income is still available to be directed to the new contract.
If you have an income of USD 5,000, for example, and already have a payroll with monthly installments of USD 1,000 (20% of the payable margin), which means you can still have USD 750.00 (the 15% available for refinancing the loan.
How about using our example to access the PB Payroll simulator and check, in practice, how can your refinancing? We are waiting for you there!