With the delivery of Personal Income Tax Returns (IRPF) in progress, banks begin to offer customers loans to anticipate the refund. The lines of credit are guaranteed by the refund that the taxpayer will have after processing the declaration, which must be sent by May 31. Anyone who needs to advance the money, however, needs to be careful.
First, the customer needs to be aware that the advance represents a credit operation, which charges interest like any loan or financing. This modality is only advised in one situation: when the taxpayer needs to use the refund money to pay off a debt.
Even when paying the debt, the customer needs to be cautious. This is because experts recommend anticipating repayment only when the interest on the debt is higher than the interest on the loans offered by the bank. Typically, the rates are close to those for payroll loans. This year, the five largest banks in the country offer interest ranging from 1.43% per month to 1.79% per month.
The taxpayer also needs to be careful not to fall into the fine mesh. Repayment loans are typically short-term, up to a maximum of six months. If the refund is delayed because the income tax person made a mistake or omitted information, the lower interest loan becomes a conventional operation, with higher interest rates.
According to the Federal Accounting Council, errors in the declaration and possible delays in repayment can make the borrower fall into a new snowball and incur yet another debt. The agency recommends contracting the advance of the Income Tax only by the taxpayer who has debts with higher interest, such as overdraft and credit card, without ever using credit to anticipate consumption.
Refund lots
The refund will be paid in five lots. The amount will be made available to the taxpayer at the bank branch indicated in the declaration. Check payment dates:
| 1st batch | may 31st |
| 2nd batch | June 30 |
| 3rd batch | July 29 |
| 4th batch | August, 31 |
| 5th batch | September 30th |
