Government releases payroll-deductible loans to Auxílio Brasil and BPC

Those who receive Auxílio Brasil or BPC (Continued Installment Benefit) can apply for payroll-deductible loans, a type of loan in which installments are deducted directly from the benefit. In addition, INSS retirees, who were previously able to commit up to 35% of their retirement to loans, will be able to increase this limit to 40%.

The novelties are part of the Income and Opportunity Program, a package of economic measures launched by the federal government this Thursday (17) for the election year.

According to the government, the changes should benefit more than 50 million Brazilians and deliver around R$ 77 billion in payroll-deductible loans. The Planalto, however, has not yet detailed how much will be the maximum amount that each beneficiary of Auxílio Brasil or BPC will be able to contract in the payroll loan.

Change in payroll loans for INSS retirees

In the case of the INSS, the previous rule allowed up to 35% of the benefit to be committed to payment of installments, 30% with a payroll-deductible personal loan and up to 5% with a credit card.

The new limit is 40%, which can be used in full for payroll loans. Retirees can also use 5% of this limit for credit card transactions and 10% for consigned comparisons — but the sum can never exceed 40%.

For example: A retiree who earns BRL 4,000 may commit BRL 1,000 (25%) to a personal payroll loan, BRL 200 (5%) to a credit card and BRL 400 (10%) to payroll-deductible purchases.

The announced program also includes the anticipation of the 13th anniversary of INSS retirees and pensioners for April and May, the early withdrawal of the FGTS (Fundo de Garantia do Tempo de Serviço) and the launch of a microcredit program for individuals and MEIs (individual microentrepreneurs). ).

In the year in which he will seek re-election, Bolsonaro seeks measures that result in some relief in the pockets of voters at a time when high inflation has restricted the purchasing power of Brazilians.

Allies of the president believe that his reappointment to the Planalto is directly linked to an improvement in the economic scenario and in people’s quality of life.

What is BPC and Auxílio Brasil like today

The BPC pays a minimum wage (R$ 1,212) to elderly people over 65 years of age and people with disabilities who live in a low-income situation. Auxílio Brasil now transfers at least R$400 per family, thanks to a temporary increase until December 2022. Before, the average benefit was R$224.

Today, only INSS (National Social Security Institute) retirees and pensioners, public servants and salaried employees in the private sector have access to payroll-deductible loans, which offer lower interest rates as they are guaranteed that the value of the installment will be deducted directly from the payroll —which reduces default risk.

According to Caixa, the authorization for BPC beneficiaries to contract consigned credit with the benefit still depends on authorization by the INSS.

In the modalities of personal credit, without guarantee, the interest is higher, even if the borrower is already a customer of the financial institution.

Measure was not passed last year

The government has already tried, last year, to authorize the granting of payroll-deductible loans with Auxílio Brasil as a guarantee. The beneficiary could commit up to 30% of the rent value with the financing.

The change was included in the provisional measure that created the social benefit in place of Bolsa Família, but ended up being excluded from the text during the process in the National Congress.

The Idec (Brazilian Institute for Consumer Protection) is critical of the release of payroll loans to beneficiaries of the social program. The entity said, at the time the proposal was being processed, that the measure would become a trap for the most vulnerable consumers and would generate “more impoverishment of the population”.

At the time of the proceedings, opposition parliamentarians were also against the proposal.