Caixa Econômica Federal announced this Tuesday (4) that it intends to start offering the payroll loan to Auxílio Brasil beneficiaries from the second half of this month, that is, before the second round of the elections.
According to the president of Caixa, Daniella Marques, the bank will operate with an interest rate below the ceiling of 3.5% per month, set by the Ministry of Citizenship in an ordinance released at the end of September.
“We will certainly operate below this ceiling, a little below, still to be defined by the bank’s risk area,” he said.
According to the Minister of Citizenship, Ronaldo Bento, 60 financial institutions are in the qualification phase after showing interest in granting the Auxílio Brasil payroll loan.
Large private banks will not offer
Several institutions, such as Itaú Unibanco, C6, BMG, Bradesco and Santander, in addition to financial BV, have already stated that they will not offer this line of credit. Specialists consider the loan modality risky for beneficiaries of Auxílio Brasil, a population whose income is already committed to essential expenses.
Banco Pan informed that it is evaluating whether to offer the credit and that for the time being it is not receiving proposals for registration. Last Tuesday, Banco do Brasil reported that it was evaluating the new rules required by the government to verify the feasibility of operating the line.
The Caixa president says she has talked to other banks and, according to her, understands that the problem is knowing how to operate with the very low-income public. “Caixa has a deep understanding of low-income people and is comfortable with consciously granting payroll-deductible loans.”
Auxílio Brasil October calendar is brought forward
Caixa announced, on Monday (3), the anticipation of the Auxílio Brasil payment schedule, which will be completed one day before the second round.
Deposits occur according to the end of the NIS (Social Identification Number). First, they receive citizens with a final NIS 1 and so on, until reaching those with a card with a final zero. See the dates:
|Final benefit card number (NIS)||Benefit release date of BRL 600|
In the interview given to journalists by the president of Caixa and the Minister of Citizenship, the government also announced that it will eliminate the Auxílio Brasil queue, with the inclusion of around 500,000 families, who will receive the benefit as early as October.
See Payroll Loan Rules
The value of the Auxílio Brasil consignment is limited to 40% of the permanent transfer of BRL 400 of the benefit, that is, the maximum discount will be BRL 160 per month. According to simulations by Anefac (National Association of Finance, Administration and Accounting Executives), the amount to be borrowed is limited to R$ 2,569.34.
The government also established that the loan can be made in up to two years, in 24 successive monthly installments, and the amount will be released within two business days after the credit is approved.
The interest rate on the Auxílio Brasil loan is higher than that of the payroll loan for INSS (National Social Security Institute) retirees and pensioners, up to 2.14% per month.
The payroll loan is a type of loan in which the contracting parties have their debts deducted directly at source — in this case, in the payment of installments of Auxílio Brasil.
Experts see debt risk
For specialists, this type of loan is harmful to the public of Auxílio Brasil, which has the benefit —from R$ 600 until the end of the year—the main form of subsistence.
Marques said that Caixa does not want to encourage household indebtedness and that customers who have loans with higher interest rates will be able to contract payroll and use the amount to pay off these debts.
“We are going to enter with a very great awareness for people to exchange a more expensive debt for a cheaper one, to replace debt and to support entrepreneurship”, he said.
According to Caixa’s president, internal surveys carried out by the bank showed that 70% of Auxílio Brasil beneficiaries are informal workers or have some autonomous activity, so the payroll loan would also be used for investment in their own business.
The main rules of the Auxílio Brasil payroll loan
- The interest rate cannot be higher than 3.5% per month
- The loan can be made in up to two years, in 24 successive monthly installments.
- The amount is released within two business days after credit approval
- The documents required for contracting the loan are an identity card (RG) or CNH (National Driver’s License) and CPF (Cadastro de Pessoas Físicas)
- There can be no grace period for the loan to start being deducted from the benefit
- Banks and finance companies will not be able to charge TAC (Credit Opening Fee) and any other administrative fees
- The family responsible registered with Auxílio Brasil will need to authorize the loan and the discount on the benefit
- You will need to authorize the financial institution to have access to personal and banking information
- Authorization must be in writing or electronically (it will not be accepted over the phone)
- Banks and finance companies will not be able to call to offer the consignment (any type of active marketing is not allowed)
- The government cannot be held responsible if the loan is not paid to the bank