Have you ever thought how good it would be to pay lower interest rates than the current one on that loan or loan agreement? With the ease of credit portability this is possible. Clarification at tysbvi.com
Learn now what this option is and how it works.
But after all what is credit portability?
Portability of Credit is the possibility of transferring credit operations (loans and financing) and leasing from one bank to the other.
A very advantageous operation, but still little used, the portability of credit can be carried out by any client, individual or legal entity, by canceling the contract and early discharge of the debt in the original bank.
The current credit portability rules were defined by the National Monetary Council (CMN) in 2013.
When it was created, the government’s idea was to stimulate competition between banks and lower interest rates.
Thus, the consumer could move between the banks that offered greater advantages.
But how does this operation work in practice?
How Does Loan Portability Work?
Many consumers still do not know how credit portability works, that is, the possibility of transferring debt from one bank to another.
In practice, portability allows you to transfer debts from one bank to another, which charges lower interest rates.
Among the main reasons that lead a customer to change banks are:
- More attractive financial conditions (especially lower interest rates);
- The quality in the provision of the service (service).
The portability of the loan works this way:
Bank A (which provided the credit)
The contractor requests bank A the amount of the outstanding balance for early settlement of the debt. This calculation brings the debt to present value (and excludes unpaid interest).
The bank then released the information.
Bank B (to which it will be migrated)
Transfer the contract value (via TED) to bank A and assume the new credit.
Bank B is then responsible for issuing a new loan or financing agreement.
In the new loan only the interest rate can be changed. The terms for payment and the value of the original transaction will be maintained.
Thus, the consumer will pay the rest of the debt, with a new interest rate in Bank B.
And what debts can be transferred?
Portability is allowed in credit lines for individuals such as: credit card, overdraft, vehicle financing, real estate credit, personal credit and payroll deductible credit .
Who can do the portability of credit?
Any individual client with a current contract that has contracted a credit operation in a Financial Institution that is part of the National Financial System (SFN).
In the case of leasing contracts, the minimum contract period must be respected before carrying out the debt transfer transaction to another bank.
The request for the portability of the payroll loan can be requested by retirees, pensioners, public servants and workers with a formal contract.
Read also : Who can make a Payroll Loan?
How to make portability of a Payroll Loan?
The first step is to seek information about the payroll loan agreement with the current lender.
The information about the credit operation, which should be requested and informed to the bank to which it will migrate, are:
- Contact number;
- Debtor balance updated;
- Statement of the evolution of the outstanding balance;
- Annual interest rate (nominal and effective);
- Total and remaining term;
- Payment system;
- Value of each installment, specifying the amount of principal and charges; and
- Date of last maturity of the transaction.
The financial institution is required to provide all information within one working day.
If you deny, the client can register a complaint with the Ombudsman’s Office or at the Central Bank .
According to the Central Bank, the bank in which the customer already has the transaction is required to accept the portability request.
What can occur is an offer of counter-proposal and will be at the discretion of the client to accept or not.
The new institution is not committed to accept the new client or “cover the financial offer”. In this case, you can also do a new analysis to release the transaction and depending on the valuation, deny portability.
If it is not possible to answer, the reasons for the refusal must be informed in writing, as stated in the Consumer Protection Code.
Before carrying out the portability, it is important to ask the new bank for the Total Effective Cost of the new operation.
In this way, it is possible to compare whether the exchange will really be advantageous from the financial point of view as well .
A good tip right now is also to conduct simulations in more than one bank .
Being then decided and being approved in the new bank, the process of credit portability will be initiated.
This occurs through the exchange of information with the source bank electronically, as provided in Resolution No. 4,292, of 12/20/2013, of the Central Bank.
The new bank will transfer the money to the original debt bank, liquidating the loan in advance . The term varies on average between 5 and 7 business days.
Contrary to many people’s beliefs, in this operation, the money will not go to the client’s account but to the transferring bank for discharge from the operation.
The transfer is carried out via TED (Electronic Transfer Available) and costs can not be passed on to the customer.
What are the costs of debt transfer?
Portability does not provide for charges, except for real estate and leasing contracts.
However, the proponent bank may charge a registration fee to start the new relationship.
The process can be canceled at no cost by the client, at any time, provided that the proponent institution has not sent the payment to the original credit institution.
That is, as long as the transfer of resources did not take place.
Is Credit Portability Worth It?
Since payroll loans are long-term debt, any reduction in value may be responsible for some benefit. Check out some other advantages:
The consumer can choose the bank
By law, loan or financing agreements can not contain loyalty clauses. That is, clauses that require the client to remain his client for a certain minimum period.
This is valid only for leasing contracts.
In other words, this means that the consumer can choose the bank that offers the best conditions.
Minor interest rate
It is possible to exchange the debt for another with cheaper and attractive interest rates.
Releasing the consignable margin
With smaller installments, in the case of the payroll loan, the assignable margin is released.
Thus it is possible, therefore, to use new available margin to contract new loans .
Transaction without cost
This financial transaction is exempt and does not provide for the collection of fees (except for transfer of the real estate loan).
Married sales of services (insurance, capitalization certificates, adherence to other service packages, transfer of TEDs, ticketing, etc.) are also prohibited.
Without limitation on the number of operations
The change of bank can be made whenever the customer wishes, as long as part of the contract has been paid.
The caveat is only for the case of the minimum period that the lease contracts require.
Transfer of debt of any value
It is possible to make portability of any type of loan, from a simple personal loan of lesser value, to the financing of a property – in larger amounts.
That way, you can also save money.
Concentration of debts
If a Retiree, Pensioner, Public Servant or Signed Worker has many debts or loan contracts, ideally they should be centralized.
Credit portability can also help in this regard. This can help you control the budget and have a better visibility of the debts in progress.
Enjoy to simplify your life: organize and plan your budget better. Make a payday loan simulation online now .
Centralize all expenses in one place!
Find out now in which cases portability does not pay.
In which cases does portability not pay?
The portability of credit may not be recommended and applied in all cases. Before making this decision it is important to assess whether this operation actually pays off.
Here are some examples where portability may not be the best solution:
Proximity of contract expiration
In this timely situation, it may be best to think of a renegotiation with the bank itself. Another alternative is the early discharge.
It should also be remembered that every new payroll loan must be recorded . Although this process is not bureaucratic and does not take so long, it can be done without necessity.
Transfer to a more expensive bank
Unless, in fact, the client has had a problem with the first bank, it is best not to exchange the debt for even greater debt.
Believe: Credit portability can be an ally in times of high defaults and represent an economy in your pocket.
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