Another novelty reaches the beneficiaries of the program Brazil Aid, as President Jair Bolsonaro sanctioned a law that allows payroll loans. As a result, recipients will be able to take out lines of credit with a payroll rate of up to 40%. See here how to apply for a Loan for Assistance in Brazil.
Read more: “It can be maintained until next year”, says Bolsonaro about Brazil Aid of R$ 600
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How Consignment works
The loan modality approved is Consigned, which means that the receipt of the benefit installments will serve as guarantee for the payment. Therefore, the installment will be deducted directly from the amount that enters the Aid Brazil.
In this case, each person who receives the Brazil Aid will be able to contract a loan whose payment installment is equivalent to 40% of the aid installment. As the program underwent a new adjustment and is now BRL 600, the maximum payment installment would be BRL 240.
In addition, beneficiaries of the Continued Provision Benefit, the BPC, may also apply for the loan. In this case, the payment margin will also be 40% referring to the monthly amount of the benefit. As BPC beneficiaries receive a minimum wage, the loan monthly installments will be around BRL 484.
Experts warn of debt risk
The loan amounts have already been released by the Union and beneficiaries can now apply at Caixa Econômica Federal branches. In addition, it is also possible to order through the Caixa Tem application, where simulations are also made.
For many beneficiaries, this is an opportunity to invest in their own businesses or make necessary one-off expenses. However, experts point out about the possibility of debt that comes with these opportunities.
After all, the proposal makes it seem that the payments are affordable and compensate for the cut in installments. However, it is worth mentioning that Brazil is still facing financial difficulties that were left with the Covid-19 Pandemic and, therefore, is subject to inflation. In this way, each one must consider whether in fact the loan is a good decision.