Datafolha: Two out of three beneficiaries reject the Auxílio Brasil payroll

Two out of three Brazilians benefiting from Auxílio Brasil have not taken out and do not intend to take out the payroll loan aimed at this public, according to a Datafolha survey.

There are 15% who declare having already taken out the loan in this modality. Another 13% did not, but intend to take out the credit line. Another 66% did not and do not intend to take this credit, according to the survey carried out on the 19th and 20th of December.

In the previous survey on the subject, from October 25th to 27th, 18% declared that they had already taken out the loan. Another 19% had not done so, but intended to take out the credit line. There were 58% who did not intend to do it.

According to Datafolha, the difference between the two surveys in the percentage of those who do not intend to take out the loan is at the limit of the margin of error, of 4 percentage points in this public.

According to Datafolha, the portion of those who do not intend to take the loan is the majority in all socioeconomic groups.

Rejection is higher among women who receive the aid (70%) than among men (60%) beneficiaries, in people with higher education (94%) and housewives (75%). It is lower among unemployed (61%), self-employed (60%) and people with primary education (62%).

Among the people interviewed, 25% receive or live with someone who has the assistance benefit.

2,026 interviews were carried out throughout Brazil, distributed in 126 municipalities. The maximum margin of error for the entire sample is plus or minus 2 percentage points within the 95% confidence level.

CONSIGNED SHUTTLE

Payroll loans from Auxílio Brasil totaled around R$5 billion in October, according to data from the Central Bank. Caixa accounted for R$ 4.3 billion released between the beginning of the operation, on October 11, and the 21st of the same month.

The numbers refer to less than 30 days, as the modality was launched on October 11 and suspended before the second round of elections, following a recommendation from the TCU (Union Court of Auditors). On November 14, Caixa released the credit modality again.

The release of payroll was used as an asset in Jair Bolsonaro’s (PL) re-election campaign. After the president’s defeat in the elections, however, Caixa began to restrict the granting of credit.

The beginning of the release of the Auxílio Brasil payroll was marked by complaints of canceled credit, delay in releasing the money, charging an extra fee and overloading Caixa’s systems.

There were also reports of undue discounts on the part of beneficiaries who did not apply for the credit. In addition, the contract that appeared in the Caixa Tem application stated that the first payment would be in December, but the charge was already due from November.

The transitional cabinet of president-elect Luiz Inácio Lula da Silva (PT) reported that it will legally sue the Jair Bolsonaro government after detecting signs of abuse of economic power during the elections through the Auxílio Brasil program.

A committee formed by employees and former directors of Caixa warned the president-elect about the risk of over-indebtedness of low-income families with the granting of payroll loans to these beneficiaries.

HOW DOES THE AID BRASIL PAYLOAD LOAN WORK

Payroll 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% of the benefit, which gives a limit of R$ 2,569.34, in 24 installments.

The maximum monthly amount to be paid is BRL 160. This amount is deducted from the base benefit of BRL 400 —and not from the BRL 600.

Although the payroll loan has low interest, the loan linked to Auxílio Brasil is 87% more expensive than the credit for retirees and pensioners of the INSS (National Social Security Institute), which has a rate of up to 2.14% per month for direct discount of the benefit.

The interest rate on the Aid credit is limited to 3.5% per month, which equals 51.11% per year. The lowest monthly rate is offered by Caixa, at 3.45% per month.