If you already have a payroll loan, however you have found another bank or finance company that offers lower rates for the same loan, how about taking this opportunity? Yes, you can swap your debt from one bank to another without paying anything for it. This is called payroll loan portability.
Look for the bank or finance company that has better terms than your current payroll loan. Then advise that you want to port the loan. To confirm that the exchange pays off, ask to see the Total Effective Cost (CET) of the new loan and compare it to your current payroll CET. That is, if the CET of the other bank is smaller, the change is worth it.
Don’t have the time or don’t know how to look for another bank for portability? Don’t worry, sign up for our site and let The Alvings take care of the entire process for you! It’s simple, fast and practical!
If you close your business and change your corporate debt, be aware that installments will continue to be deducted from your salary or retirement. But with portability, you can lower the value or have more payable margin to increase the loan.
It is nice to know that the one who will pay off your debt with the previous bank is the new institution that will provide the credit. If you want to change banks you will need to check if the other bank also has an agreement with the place you work. In the case of Social Institute payroll loan portability most banks have an agreement and therefore you can switch banks.
However, in the case of portability of the payroll loan from the civil servant or the Armed Forces it is necessary to check with the new bank if there is a payroll loan agreement with the institution you work for.
The institution in which the original operation was contracted cannot refuse to transfer its debt. But the new bank, the new financial institution, may refuse to accept the transfer.
There is no such obligation. Incidentally, it is not allowed to make portability conditional on hiring another service from the new institution. However, if you have found lower interest rates to pay off your debt, it may be that other products and services from the new bank may also be more financially beneficial.
A very practical alternative is to make your payroll portability online. The Alvings is one of the best companies in this segment and offers payroll-deductible loans to Social Institute retirees. You can apply 100% online quickly, securely and even compare payroll from various banks.