Credit portability is an operation aimed at public servants, retirees and pensioners, which consists of transferring the debt of a payroll loan to another financial institution.
Payroll Loan Portability
According to the Central Bank, when requesting portability of credit, obligatorily, the financial institution should offer a lower interest rate than the current bank. This, consequently, provides better hiring conditions . In addition, in order to be able to perform the transaction, it is necessary that the applicant has paid approximately 25% of the total amount of the debt in the current bank.
How does credit portability work in practice?
The portability of the debt of a payroll loan is carried out between the banks themselves. It is enough that the borrower requests the necessary documentation for the financial institution in which he / she contracted the credit. Check below what are:
- Paycheck loan discharge slip
- Contact number
- Total amount of debt
- Loan amount
- Start date and end of contract.
Once you have all the documentation in hand, you need to provide it to the financial institution where you will transfer the debt. It is important to say that when requesting the portability of credit, necessarily, will occur the refinancing of the debt .
That is, the new bank will remove to the borrower all the value of the loan debt done at the old bank. Then a new amount of credit will be released, with a new contract and a new term. From this amount granted, the financial institution will deduct the amount you used to repay the loan at the old bank.
In which situations should I request portability?
Before requesting consigned loan portability, it is necessary to carefully evaluate in which situations this operation provides advantages. Check belowFor those who wish to apply for a new payroll loan line but have no available assignable margin , requesting credit portability is a good option. For, as the new bank will repay its previous loan, the assignable margin will be restarted. And thus, a new credit will be granted for you to use in any way you prefer.One of the biggest advantages of loan portability is related to low interest rates. This is because payroll loans are monitored by the INSS and this authorizes the portability operation only if the target bank’s interest rate is lower than the current bank. Thus, you exchange an expensive debt for a cheaper one When performing credit portability, a new contract will be managed. In this way, it is possible to establish a longer debt repayment term, which provides a smaller portion value that fits into the borrower’s budget.