When retirement finally arrives, most people just want to make the most of this moment to rest and do what they love. However, guaranteed income may not always be enough to accomplish some goals, such as traveling or buying a home.
In this sense, looking for personal credit for retirees or payroll loans can be a solution to obtain money in a time of need. Unlike other lines of credit, this is a type of concession with fewer requirements and more interesting rates.
If you don’t know anything about this modality, in this text, we will talk a little about this type of credit and how it works. Check out!
Is personal credit worth it for retirees?
As we mentioned, the life of a retired person tends to be more peaceful. After all, after decades of work, the retiree wants to have fewer obligations and dedicate himself to things that give him pleasure. Generally, your income is expected to support your new lifestyle.
However, there are situations in which, even after years dedicated to the craft, what he receives is not enough. Including achieving some goals, such as buying a property, or recovering from some retirement situation.
The scenario can be even more complicated when we think that, with the Pension Reform approved, it will be necessary to work much longer to earn 100% of your salary. Many may not be able to meet this requirement, receiving only 60%.
In this sense, the possibility of taking out a loan can help achieve your goals. Whether they are the acquisition of a property, or the discharge of a debt , for example. Mainly because it is a type of concession that has retirement advantages and a certain flexibility. Ideal for people who cannot afford to always analyze their budget.
How it works?
It is important to know that specific personal credit for retirees is also known as a payroll loan. It is a type of concession whose main characteristic is that the instalments are deducted directly from the payroll.
Because of this, not everyone can have access: only public servants, employees of partner companies, pensioners and retirees have the right to apply for this type of credit. In the latter case, specifically, the discount happens even before the benefit falls into the account.
Other characteristics of this credit are that the interest is usually lower and the retiree cannot commit more than 35% of his income to the instalments. 5% of this amount is allocated to the payroll credit card. The repayment period can be up to six years, depending on the size of the loan and the retirement institution.
It should be noted that the interested party needs to be aware of the age limit to apply for this credit. As retirees generally have a more vulnerable living condition, banks and institutions usually offer payroll loans to only beneficiaries who are up to 80 years old.
What to evaluate?
Despite the ease of discounting the direct portion of the benefit, the retiree must be careful when analyzing some conditions so as not to end up paying more than he should. Among the main precautions are:
- do not give your bank details to strangers;
- Try to do a good research, because there are different proposals on the market for consignment. Always choose the alternative that suits your situation. Also, don’t forget to run simulations to get an idea of the total cost;
- Have you already decided what the institution will be? So, don’t forget to check if it is insured with the SSA, as well as if it has authorization from the Central Bank to operate.
- Read the contract. This is the main document that contains all the conditions for the loan, as well as having a legal value. To avoid unpleasant surprises, try to read carefully. If you have a clause that you don’t understand, don’t sign it without clarifying it first.
What are the advantages?
This is a type of credit that has some interesting advantages, especially when compared to other loan options available on the market. You’ll see the main benefits below.
It is possible to make more than one loan at the same time, if the retiree wants to. However, the sum of both cannot exceed the limit of 30% of the interested party’s monthly income.
It can be done with the negative name
Another great advantage of this loan is the possibility of doing it even with a negative name . It is a modality with much less requirements. Institutions do not usually carry out a credit analysis. This happens because there is full guarantee of payment by the applicant, since the amount is deducted directly from the benefit.
The rate for this loan is usually much lower than other lines of credit, such as personal loans.
Generally, institutions that offer this type of credit usually offer longer terms, up to 72 months.
There is not much bureaucracy for this type of loan. In some cases, even a bank account is not required to order it.
Once the order is approved, the money is released. Some institutions can deposit the money within 24 hours.