Refinancing and portability are two types of payroll loans. They are responsible for promoting savings and payment flexibility, besides other benefits. Despite appearing to be the same services, they have some different characteristics, so it ends up generating some doubts. To help clarify the differences, we have decided to explain each of these products.
Understanding what Refinancing is
Refinancing a payroll loan at lowest refinancing rates guarantees reduce the interest rate. It serves a lot for those who want to save or need more money and do not want to change banks. The advantages are that it is possible to keep the same amount of the installment, it allows the reduction of interest, and frees up money. To request refinancing, it is necessary that part of the installments of the previous loan have already been paid (from 15% to 30%).
This service is of great help in some cases, including –
- Those who need money but no longer have a consignable margin,
- The contractor needs a new loan but does not want to take out another loan,
- The contractor is interested in making a loan with better conditions, but without changing the payment installments.
What is portability?
As with refinancing, the portability of payroll loans was created with the aim of offering better credit opportunities to customers, streamlining their experience and freeing them from contracts with high rates. The loan portability service is the possibility to exchange your current loan for a new loan with more advantageous conditions. In this way, you replace your previous loan agreement with a new one with better benefits. The main difference for refining is that in portability, you can change banks and there is a need to have an amount of installments already paid, above 12 installments.
Balance release deadline
It mostly needs 4 to 6 business days for the financial institution to process and release the amount. For refinancing, you must go through all the options you could get from the bank. In the case of portability, the period is longer, because as we have seen, it is a two-step process until the change is paid. From the moment of signature, the period to release the portability of a payroll loan is 20 to 45 working days.
The Refinancing stage is one of the ones that most generate doubts in the consumer. It is important to know that this phase occurs due to the procedure for changing the proposal and improving the interest rate.