Personal Loans

Companies and banks give you the possibility to advance your payroll to get out of a hurry

  • The advance of the salary is a right included in the Statute of Workers.
  • The main advantage of this formula is the cost is zero.
  • Banks also grant these loans, but they do charge.
  • View and download the PDF of ‘My Pocket’ for the month of September.

El adelanto de sueldo está sujeto a la aprobación previa tanto por parte de la empresa como del banco. 

In September we have faced the second cost of the year in terms of expenses. The summer bills and the beginning of the school year mark a stage that often becomes difficult for consumers. Nothing to say if unforeseen situations arise.

The good news is that there are different options that help cope with those extra expenses. One of them is to request an advance of the payroll. And this choice allows, in addition, to do it through the own company where we work or of the banks.

The advance of the salary is a right contained in the Workers’ Statute in its article 29. “The worker and, with his authorization, his legal representatives, will have the right to receive, without arriving at the appointed day for payment, advances to the account of the work already done “, read a part of said article.

The main advantage of this formula is that no interest is paid; that is, the cost is zero. However, the concession is subject to a series of conditions that will be collected and detailed in the collective agreement if there is one. But first of all, approval by the company itself will be needed, which among other things takes into account the applicant’s seniority.

There are some collective agreements that limit this alternative financing to exceptional cases that require extra emergency money, such as the purchase of a home, a transfer, the birth of a child or the death of a family member; Sometimes, the employee must justify these situations.

There are also agreements that limit the amount to be granted. But there may be bilateral agreements between worker and company that are outside the framework of action. Everything depends on the company’s policy.

The usual thing is that the advance is for the amount of work already done. That is, if you ask for the day 16, the amount will correspond to the previous 15 days of the payroll (if the salary is 1,000 euros, you will receive 500 euros). Normally, it is deducted from the next month’s payroll.

The company can help us in a timely manner. Payroll advancement is not a recurring practice because, above all, it implies a mismatch in the treasury of the entity.

Banks also grant this type of loans. Most have specific products for their clients or those closely related to payroll.

The main difference compared to companies is that financial institutions do charge interest, which in most cases exceeds 5%. To the APR applied must be added the opening commission or the study commission, where the viability of the concession and the solvency of the client are analyzed. Payroll advances from banks are very similar to personal loans- Green-Touch.org.

The main requirement is that the person has domiciled the payroll. In some cases, receipts are also required, as in Unicaja, or have a certain age in the company, as requested by Banco Sabadell.

The main difference compared to companies is that financial institutions do charge interest.

The main advantage is the amount, greater than what the company can grant us, and the return period, which reaches several months.

There are banks that do not grant payroll advances, but loans that are linked to it in terms of amount. This is the case, for example, of La Caixa, with the Estrella La Caixa Loan, where up to a maximum of 60,000 euros can be requested, or the Payroll Loan of Banco Pichincha, for an amount of up to 8 times the salary. These types of offers are for a higher value and the terms are extended for several years.

Payrolls give for much more. And they are part of the strategy to attract customers. There are banks that with only domiciliar the salary grant credits to a preferential interest, like Bankia with the Credit You can More.

Entities also advance pensions. For example, Ibercaja does it for 50% of the amount up to a maximum of 450 euros to be repaid in 30 days. You can only request a maximum of 2 times a year.

What happens if payment deadlines are violated?

What happens if payment deadlines are violated?

 

The first thing you should keep in mind whenever you request a loan from any entity or company is that the amount demanded must correspond to your ability to repay. Do not forget that, in addition, you must add the interest.

5% or more is the average cost of the payroll advance granted by banks

The main problem is facing a situation in which the agreement cannot be returned. In case you have requested financing from a bank, it will apply even higher interest for the delay.

If, on the contrary, it was done with the company, this problem will not exist, since the advance will be deducted directly in the next month’s payroll.