Consignable margin: see what it is and how to calculate it

The payroll loan is a credit model that helps retirees, pensioners, public servants and workers in private companies to obtain credit easily and at low cost. However, to adhere to this model, it is essential to understand its main characteristics to avoid scares, such as the consignable margin.

The consignable margin is one of the main factors for those who opt for consigned credit. Knowing about it helps you understand the size of the installments you can pay and the total value of the loan. At the same time, it gives you more security when applying for credit.

If you want to know more about the consignable margin and its importance, continue reading below!

What is the consignable margin?

The consignable margin is the salary, pension, benefit or retirement limit, which can be used to pay consigned loans . In other words, it is the maximum amount that a person can direct, from their income, to pay for credit obtained from financial companies. It is defined according to your social profile and can be modified if the person takes out a credit card (which, in turn, can use an additional 5% of the income of the person signing up).

What is the consignable margin for?

The consignable margin was created to prevent people who use consigned credit from requesting a loan amount that compromises a large part of their income. In other words, it prevents a person from using a large part of their salary just to pay off their debts .

Given this, we can see the consignable margin as a “preventive measure” for the use of consigned loans. With it, people will have more guarantees that their income will always be available for essential expenses.

How does the assignable margin work?

Whenever a person requests a payroll loan, a calculation is made based on the income obtained through salary, retirement, pension or benefit that will be used to pay the loan. This way, it is possible to identify the available consignable margin. For example: if you receive R$2,000.00 per month in salary, you can use up to R$700.00 each month to pay off your debt.

This amount of R$700.00 must be used to pay all installments of the loans contracted by the person. So she can, for example, carry out two credit operations with installments that, together, add up to R$700 per month.

Pay attention: the amount taken into account by financial companies is defined based on the net income received monthly by the person requesting the loan . This gives more freedom and facilitates financial planning for all people who use this credit model. After all, mandatory discounts will not interfere with your ability to pay off debts.

What is the difference between negative and zero margin?

Another relevant point when we talk about payroll loans is the zero margin and the negative margin. See the differences:

• the zero margin is a situation that occurs if the limit available for the person to take out a new loan has already been zeroed. In this case, she must pay some installments before creating a new debt;
• The negative margin occurs when there are new uses of the loan payment method even if the limit has already been reset. This occurs, for example, when there is a payment of alimony or other deductions that occur automatically, such as a union contribution.

What is a consignable margin letter?

Another important point is the consignable margin letter, also known as consigned statement. It informs a person of the amount available to pay loan installments. This document must be issued by the employer or the body responsible for the retirement or benefit that will be used to pay the credit operation.

The margin letter must be sent to the financial company that will analyze the loan. From there, the person’s profile will be defined, as well as interest rates and payment possibilities. Therefore, always pay attention to the data contained in this document!

What is the Consignable Margin Reserve?

In addition to the consignable margin letter, it is important to know the Consignable Margin Reserve. This is the amount (in %) of the consignable margin value that can be directed to the payment of a consignable credit card. Also called RMC, it is measured based on the minimum payment amount for credit card bills that will be available for monthly payment. This amount is automatically charged to the benefit or salary used to validate the card request.

It is important to highlight that long-term credit card debt should always be avoided. This is especially true for those that involve paying the minimum amount on his invoice. Well managed, a credit card will not prevent you from realizing your dreams, such as opening a business or taking a trip.