Consignment from Auxilio Brasil jumps to R$ 5 billion in October, says BC

Payroll loans from Auxílio Brasil totaled around R$ 5 billion in October, according to data released this Monday (28) by the BC (Central Bank).

According to Fernando Rocha, head of the BC’s Statistics department, the payroll loan market for private sector workers moved a monthly amount of around R$ 1.5 billion in 2022, until September, having jumped to around R$ 6, 7 billion in October, jump

“It is quite expected that the growth in these operations, something around R$ 5 billion, has been derived from the operations of Auxílio Brasil”, stated Rocha, in an interview in Brasília. The numbers refer to less than 30 days, as the modality was launched on October 11 and suspended before the second round, following a recommendation by the TCU (Union Court of Auditors). 🇧🇷

The concession continued to be blocked after the election, for processing the payroll of the benefit.from the Auxílio Brasil payroll loan On November 14, Caixa Econômica Federal once again released the payroll loan of the Auxílio Brasil. The loan

According to Caixa, the suspension should take place every month, when Dataprev (a federal government technology company) prepares the monthly payment of the aid. The number of days in which there will be suspension and the exact dates, however, are not defined.

HOW DOES THE AID BRASIL PAYLOAD LOAN WORK

Consignment is a credit deducted directly from the benefit. As a result, each month, the beneficiary receives a smaller amount until the loan is paid off. According to the approved rules, it is possible to borrow up to 40%, which gives a limit of R$ 2,569.34, in 24 installments. The maximum monthly amount to be paid is R$ 160.

The BRL 160 is deducted from the base benefit, of BRL 400 —and not from the BRL 600 that, according to a measure by the Bolsonaro government, would only be paid until December— which means that the beneficiary receives only BRL 240 a month.

Although the payroll loan has low interest rates, the loan linked to Auxílio Brasil is 87% more expensive than the credit for INSS (National Social Security Institute) retirees. The lowest monthly rate is offered by Caixa, at 3.45% per month.

The interest rate is limited to 3.5% per month, which is 51.11% per year. Although limited by the government, the interest rate on the Auxílio Brasil loan is higher than the payroll loan for INSS retirees and pensioners, up to 2.14% per month.

The amount paid in interest on the Auxílio Brasil payroll loan can cost up to 87% more than other types of credit with a discount on the income of wage earners in the public and private sectors or INSS (National Social Security Institute) retirees and pensioners, according to simulation carried out by Anefac (association of finance executives).

Beneficiaries claim undue discount

Beneficiaries of Auxílio Brasil who did not apply for the loan are complaining about an undue discount on the installment. In addition, to those who actually made the contract, the contract informs that the first payment would be in December, but the charge is already being made in November.

This Thursday (10), Caixa announced that it will cancel the undue loan. To do so, citizens must go to an agency with their CPF and an official photo identification document. About the contractual information, the bank is sending messages on the cell phone informing the exact rules.

See banks and finance companies that are authorized to do payroll

• Caixa Econômica Federal
• Banco Agibank S/A
• Banco Crefisa S/A
• Banco Daycoval S/A
• Banco Pan S/A
• Banco Safra S/A
• Capital Consig Sociedade de Crédito Direto S/A
• Facta Financeira S/A Credit, Financing and Investment
• Pintos S/A Credits
• QI Sociedade de Crédito Direto S/A
• Valor Sociedade de Crédito Direto S/A
• Zema Credit, Financing and Investment S/A

The maximum amount of the installment, R$160, is equivalent to 40% of the minimum benefit of R$400 paid permanently by the social program. The additional installment of R$ 200, started in August, is still temporary and will not be considered in the calculation basis of these families’ ability to pay.

The amounts are deposited by the financial institution in the same account where the benefit is paid, within two business days after the loan is taken out, according to the ministry.

Large private banks such as Itaú Unibanco, C6, BMG, Bradesco and Santander, in addition to the financial company BV, have already stated that they will not offer this line of credit. Experts consider the type of loan for beneficiaries of the Auxílio Brasil, a population with income already committed to essential expenses, to be risky. In addition, the benefit may suffer fluctuations in its value, or be suspended if the family is no longer entitled to the payment.

THE MAIN RULES OF THE BRAZIL AID LOAN

• Interest rate: cannot exceed 3.5% per month
• Deadline: the loan can be taken out in up to two years, in 24 monthly and successive installments
• Cash release: within two business days after credit approval and contract signing
• Required documents: RG or driver’s license and CPF

What banks and finance companies cannot do

• There is no charge for TAC (Credit Opening Fee) and other administrative fees
• They cannot call to offer the consignment. Any type of active marketing is not allowed to convince the beneficiary to adhere to the credit
• There cannot be a grace period for the loan to start being deducted from the benefit

Who can ask for the money

• The family responsible registered in the Auxílio Brasil must authorize the loan and the discount on the benefit and have been receiving the Auxílio Brasil for more than 90 days
• You will need to authorize the financial institution to access personal and banking information
• The beneficiary will also have to sign a questionnaire with financial education guidelines
• Authorization must be in writing or electronically (it will not be accepted over the phone)
• The government cannot be held responsible if the loan is not repaid to the bank.

HOW TO MAKE A LOAN REQUEST THROUGH CAIXA TEM

Access the Caixa Tem application and simulate how much you can hire:

1. Click on the “Loan” option
2. Go to “Simulate and Hire”
3. Now, click on “Consigned”

The simulation will report:

• the interest rate on the loan
• the duration of the contract
• the value of each installment
• the amount you will start to receive in aid if you take out the loan
• the total amount you will pay for the loan at the end

IN AGENCIES, LOTTERIES AND CORRESPONDENTS

Employees of financial institutions must inform the beneficiary who wants to take out the loan:

• Total amount contracted with and without interest
• Effective monthly and annual interest rate
• Remuneration, arrears and tax increases that affect the contracted credit
• Value, quantity and frequency of installments
• Sum of the total payable at the end of the loan
• Discount start and end date
• Net amount of benefit remaining after hiring
• CNPJ of the bank branch or bank correspondent
• Amount of commission paid to third parties hired by financial institutions to carry out the sale of credit

HOW DO I CONSULT AID BRAZIL LOAN APPLICATION BY CAIXA TEM?

• Access the Caixa Tem app
• On the first screen, access the option “Consigned Aid”
• Then go to “View my contracts”
• On the next screen, in the upper right corner, the situation of the contracts appears
• The loan can be in process, approved or canceled