Changing the INSS payroll can reduce loan interest

Beneficiaries of the INSS (National Social Security Institute) who have payroll loan contracts can get lower interest rates if they opt for the so-called portability, created by the Central Bank in 2013. Transferring the debt to another institution can be advantageous, as it makes it possible to exchange a contract more expensive for a cheaper one. But you have to pay attention to the details to get a good deal and be careful even with scams.

According to Reinaldo Domingos, president of Abefin ​​(Brazilian Association of Financial Education Professionals) and DSOP Educação Financeira, payroll-deductible loans are one of the lowest interest types of credit, as the discount of installments directly at the source of income gives greater security to the Bank.

According to Domingos, even with the high Selic (basic interest rate), some banks are able to make more competitive interest rate proposals.

The Central Bank website publishes the list of fees charged by institutions, but it is worth consulting the banks. Individually, they can offer more advantageous terms.

According to the INSS, the current maximum interest rate is 2.14% per month for payroll-deductible loans and 3.06% per month for payroll-deductible credit cards.

Those interested in making the portability should know the value of the installments, how many are still missing, interest rates and CET (Total Effective Cost). The CET must include not only the interest rate, but fees and other charges charged to the customer, such as insurance, for example.

According to lawyer Beatriz Sousa Lopes, from Vigna Advogados Associados, the beneficiary must ask the bank for the debt statement and the statement of the remaining balance, which will have this information.

A tip is to compare the value of the installments (including interest and other charges) of the two institutions, says Domingos. For this comparison to make sense, the number of remaining installments must be the same between the current bank and the bank to which the portability will be made.

“Portability can be requested at any time, not needing to have paid off part or percentage of the debt”, says Ednise de Carvalho Rodrigues, a lawyer specializing in social security law and chairman of the OABPrev Bauru Commission.

How to request payroll loan portability?

Know your debt

• Check with your bank about the debt conditions — amounts, number of installments and fees
• According to Ednise, the institution has up to 15 days, from the client’s request, to provide the data
• It is possible to file a complaint with the Central Bank

Research the conditions of other financial institutions

• Search, on the Central Bank website, the interest rates for payroll loans at other financial institutions. Consulting banks directly can increase the chances of getting more advantageous conditions and more up-to-date rates.
• The expert warns that it is important to check if the institution is reliable and is regulated by the Central Bank before providing any data – which can be used by fraudulent institutions to apply scams

Compare interest

• For the exchange to pay off, the interest rate must be lower at the new bank
• The Central Bank does not authorize portability if the value and term of the new loan are greater than the original payroll loan

Formalize the order

• If any proposal is advantageous, formalize the portability request at the new financial institution. This institution will contact the previous bank to “buy the debt”, paying off the customer’s debts
• You will need to inform data such as the contract number and address of the original institution, CPF and telephone number of the holder
• According to Ednise, the financial institution where the consignment was obtained will not be able to prevent or impose obstacles to portability, which will be done free of charge, without any charge to the customer. The new institution has five days to complete the debt transfer

Watch out for counteroffers

• Portability is a stimulus to competition between institutions. When requesting the transfer of the debt, the bank that has the retiree’s loan can offer better conditions
• If the counter-offer is better than the bid of the new financial institution, the client may withdraw from portability. For this, he must inform the institution that originally made the consignment. She has a period of two days to inform the new institution of the customer’s withdrawal

Beware of scams and false proposals

• Do not accept proposals made by phone, social networks or messaging applications, or pass information such as CPF and passwords through these means.
• Look for official service channels or agencies to certify the information

don’t lend your name

• Avoid making loans in the name of other people, even to relatives
• If she can’t pay the installments, her name can get dirty

Take cover

• INSS policyholders who do not wish to take out credit in this modality can block the benefit for new loans, which can reduce fraud