Those in a hurry to receive the income tax refund amounts find an alternative to having the money before: making a loan in advance of the receivables.
But like every financial operation, the practice requires research and certain care. Therefore, we explain here how this type of credit works. Assess the conditions and risks to see if it is worth applying for an Income Tax advance loan.
How to apply for Income Tax Advance Loan?
Several banks offer the service and rates and limits vary by institution. As there is a high chance of receipt, interest rates are usually cheaper than other types of credit.
In general, banks require the receipt of the IR statement with the same institution to be deposited. A credit analysis is done to determine approval and threshold. Some institutions allow you to borrow up to 100% of the amount to be repaid.
Payment is made in one installment when the IRS makes the deposit or on the day agreed with the financial institution – the date you arrive earlier.
Be careful not to curl up
The taxpayer must be very careful not to fall into the fine mesh. This is because banks set a deadline for payment, usually in the last days of the year.
And those who are in fine mesh can receive only in residual lots, after the turn of the year. In this case, the bank will charge the full amount of the loan (with interest and taxes) even without receiving the repayment. If the client can not afford the debt, can pay fines and have restrictions on the name.
Another risk is if there is any rectification and the refund value drops. Banks will consider the amount taken for debt collection. That is, the client will receive less money, but the debt will remain the same causing the taxpayer to bear the additional costs of credit.
Does Fundico make IR advance loan?
No. Fundico offers personal loans to individuals without the need for collateral from the customer. Unlike the anticipation of IR, loan payments at Fundico are made in monthly slips. We work with one of the best interest rates on the market, competitive with the anticipation of IR, which you can confirm by applying for a personal credit application on the site.