Choosing a loan type is not an easy decision. There are several options on the market that cater to different profiles, so payment terms and interest rates can vary greatly.
Personal loan is one of the most popular forms of credit. Their hiring is very fast and affordable, however, the interest rates are higher compared to the payroll loan .
How Personal Loan Works
Personal loan, also known as personal credit , is recommended for people who need quick cash to pay off a debt, or solve an unforeseen personal emergency. The credit request is made as follows: the individual (individual) goes to a bank or a financial institution and performs his registration. Subsequently, a credit analysis is performed.
One of the benefits of personal loan is the ease of hiring. If passed the credit analysis, the individual can receive the money in same day account. However, you need to be aware of interest rates, which can be very high.
Understand the personal loan calculation
Personal loan interest is usually higher than other types of credit. This is because, in this type of loan the bank has no guarantees of payment. Therefore, the risk of loss is offset by high interest rates .
Personal loan interest rates can range from 1% to 21% per month, but the average of the five largest banks in the country is 4% per month (data from September / 2019). IOF is also charged on the amount borrowed.
Loans made from 01/22/2015 have a maximum IOF of 3% per annum (0.0082% per day). This amount is calculated at the time of loan release, based on the repayment term and credit amount.
See it in practice
To understand the calculation of personal credit, let’s simulate a loan requested on 10/01/2019, in the amount of $ 5,000 and will be paid in six installments. The interest rate applied will be 4% per month plus IOF. Under these conditions, the individual must pay six fixed installments of R $ 982.42, which results in an estimated total amount of R $ 5,894.54 .
Payroll Loan vs. Personal Loan
Payroll-deductible loans, also known as payroll deductible loans , are another popular form of credit and suitable for people with employment or retirees and INSS pensioners.
This type of loan differs from personal credit mainly in the form of repayment. In payroll loans, the payment term is a maximum of six years (72 months) and the installments are limited to 30% of the applicant’s remuneration.
Payroll loans also offer lower interest rates when compared to personal loans. The interest rate of private payroll loans, for example, is approximately 2.2% per month (data from September / 2019).