FGTS loan: money without compromising your budget

The Service Time Guarantee Fund (FGTS) is a right for workers with a formal contract, which consists of a monthly deposit made by the employer into an account linked to the employment contract. 

This money can be withdrawn in specific situations, such as unfair dismissal, retirement, purchasing your own home, among others.

One of the FGTS withdrawal methods is the birthday withdrawal, which allows the worker to withdraw part of the account balance in the month of their birthday, every year. 

To opt-in to this option, you must make the request on the FGTS app or website.

But what if you need money before your birthday? Or if you want to anticipate several years of withdrawals at once? 

That's where the FGTS advance loan comes in, a form of credit that uses your future fund balance as collateral.

How to take out the FGTS loan?

The FGTS advance loan is offered by some banks and financial institutions, which have partnerships with Caixa Econômica Federal, fund manager.

To hire, you need:

• Have a balance in the FGTS and have joined the birthday withdrawal;
• Authorize the financial institution to consult your information in the FGTS application or website;
• Carry out the simulation and request for the loan through the application, website or WhatsApp of the chosen financial institution;
• Wait for the credit analysis and the release of the money into your account.

As it is a loan with payment guarantee, many companies offer this credit. 

In fact, it has no bureaucracy and even negative people get approval.

Advantages and disadvantages

O FGTS loan It has some advantages over other types of credit, such as:

• Lower interest rates, from 1.49% per month;
• Ease and speed in hiring, without bureaucracy;
• Possibility of hiring negative candidates;
• It does not compromise the monthly budget, as the payment is deducted annually from the balance of the individual FGTS;
• You do not need to prove income or justify the use of the money.

On the other hand, it also has some disadvantages such as:

• Reduces the balance available for withdrawal in the event of dismissal or retirement;
• prevents the worker from returning to withdrawal for two years after hiring;
• Limits the loan amount to the future balance of the anniversary withdrawal, which varies depending on the balance range and the rate applied.

Is it worth taking out the loan with FGTS advance?

This type of credit can be a good alternative for those who need quick and cheap money, without compromising their monthly income. 

However, you need to evaluate whether it is worth giving up part of your guarantee fund, which can be useful in emergency or long-term situations.

Before hiring the FGTS loan, compare the rates and conditions offered by different financial institutions, simulate the amount you can receive and analyze whether you really need this money now or whether you can wait until your birthday.

Also remember that the FGTS advance loan is a debt that must be paid. 

Therefore, use money responsibly and with financial planning. This way, you can enjoy the benefits of this modality without compromising your future.