One of the main doubts of anyone who is considering applying for a Personal Payday loan is in relation to interest rates. Most credit models apply high interest rates because banks have no real guarantee of debt repayment.
Know the Personal Payday loan with the lowest market rate
An important point before applying for a Personal Payday loan is to know and analyze all the loan modalities available in the market. Thus, it is easier to find out which type of credit has the best hiring conditions and which best suits your need. Check below:
The payroll loan is a modality of credit exclusively for public servants and retirees or pensioners of the INSS. Its main differential is that the payment of installments is directly discounted from your salary or benefit. Therefore, the banks have greater guarantee of their payment and, consequently, the default rate is much lower. Thus, financial institutions are able to apply lower interest rates , which are up to 5 times lower than other Personal Payday credit modalities.
Personal Payday loan
The Personal Payday loan is when you ask the bank for a certain amount borrowed. The bank will analyze your income, your relationship with your bank and the market, and all the documentation you need to know if you have the funds to pay the debt later. These data will guide the definition of loan conditions, such as term and interest rates.
If the loan is approved, it is necessary to sign a contract, which will detail the loan repayment term and which percentage of interest plus the value of the installments.
Overdraft is a limit value that banks pre-release into your checking account . Because this credit model is already authorized and has no bureaucracy , you can use it at any time. Therefore, it is important to monitor your checking account frequently. sometimes it is so easy to “get on the overdraft” that we do not even notice. And since the overdraft interest charge is quite high, it may leave you even more in the red.
The revolving loan is related to the minimum payment of the credit card invoice. That is, when the total amount of the invoice is not paid, you are indirectly taking out a loan with the bank.
Basically, the bank pays the full amount of your invoice, and thus prevents your name from being erratic. However, the amount paid for it will be charged plus interest on your next invoices. Therefore, it is important to pay attention to the revolving loan, since interest is usually high and cumulative .
With the table below it is possible to make comparative of Personal Payday loan modalities and their interest rates, according to Central Bank data:
|Loan model||Average interest rate|
|Personal Payday loan||4.65%|
|Payroll loan||2.10% at|
Now that you are familiar with the major Personal Payday credit models, understand why the payday loan has the lowest interest rates on the market compared to other forms of credit by reading the post: Loan with Low Interest Rate: Understand the reasons