INSS retirees already have higher payroll interest rates

The interest on payroll-deductible loans from the INSS (National Social Security Institute) has already started to rise in the country’s banking network. The new rates, up to 2.14% per month for payroll-deductible personal loans and up to 3.06% per month for credit cards, have been in effect since last Friday (10), when a normative instruction was published with the new indexes.

According to information from Febraban (Brazilian Federation of Banks), banks are already “promoting internal adjustments in their systems to apply the new rates”. Each institution defines when the new interest starts to be applied and what percentage, which is limited by the index published by the INSS.

Itaú Unibanco has not yet increased the indexes. Those who take out a payroll-deductible loan by the bank pay lower interest rates for the time being. The institution says it is “carrying out studies to decide when it will change its maximum rate and emphasizes that any change in this direction will only apply to new contracts signed”, says the network.

“The bank also emphasizes that payroll loans continue to be the credit option with the lowest rate in the market and that this varies according to the client’s profile, its relationship with the institution, the amount borrowed and the financing period”, says a note.

Banco do Brasil also did not adjust interest rates and continues to lend money to INSS retirees and pensioners at lower rates. “BB permanently monitors and assesses the fundamentals of the market and competition, always with the aim of establishing its pricing policy under competitive conditions”, says the bank.

Caixa Econômica Federal and Santander did not send the information until the publication of this text. But, in all cases, before hiring, the retiree or pensioner can simulate the values, fees and payment term of the loan.

Increase occurred at the request of banks

The increase of 18.9% in the payroll-deductible loan, which previously had interest of 1.80%, and 13.3% in the credit card rate (before 2.70%), was a request from the banks, after drop in interest rates during the pandemic and a long freeze period. Since March 2020, less than a month after Covid arrived in the country, payroll rates have fallen and remained at the same level.

The authorization for the increase was given by the CNPS (National Social Security Council) on Monday (6). The readjustment was linked to financial education policies for INSS retirees and pensioners, which should be funded by banking institutions, but whose main points will be debated and defined by the council.

most advantageous rules

By the end of this year, the INSS payroll will have more advantageous rules for policyholders. It is possible to commit up to 40% of the monthly income with credit: 35% for a personal loan and 5% for a payroll card. In addition, the installment payment can also be made in up to 84 installments.

As of 2022, the rules must return to what they were before the Covid-19 pandemic and the retiree or pensioner will be able to commit up to 35% of their monthly income with these debts: 30% for the loan and 5% for the credit card consigned, in addition to having to pay off the debt in up to 72 installments.

The most recent data from the INSS show that there are 195.6 million active payroll deductibles in the country. This year alone, 37.8 million new contacts were closed. This type of loan is controlled by the CNPS and any proposed change is only valid if approved by the board.