The Federal Senate approved a provisional measure (MP) authorizing the possibility of beneficiaries of the Auxílio Brasil to apply for payroll loans. The MP, which has already been approved by the Chamber of Deputies, is now awaiting sanction by President Jair Bolsonaro. If the proposal is also approved by the President of the Executive, anyone who participates in the social program will be able to obtain guaranteed credit. Therefore, check out this article for more details about the loan for those enrolled in Auxílio Brasil.
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Payroll loan for those enrolled in the Auxílio Brasil
Currently, around 18.06 million Brazilian families are members of Auxílio Brasil, and will be able to benefit from this type of assistance after approval by the president. The government estimates that around R$77 billion would be released to beneficiaries.
The payroll loan is well known by INSS retirees and pensioners, who have been taking advantage of the opportunity for several years. As the chance of default is virtually zero, interest rates tend to be lower. This is because the value of the benefit itself is used as a guarantee for payment of the debt in this modality.
Due to the fact that this new measure facilitates loans to families with lower purchasing power, specialists fear that this process will increase the level of indebtedness among low-income families. Questioned on the subject, the Minister of Citizenship said that the public already hires finance, but that now there would be an option with lower interest rates.
How will the payroll loan work in this condition?
The MP established the benefit limit at R$ 400 from January 2023, which implies that no family will receive less than this amount per installment. Until then, he was only guaranteed until December 2022. In this way, the idea is that all beneficiaries of the program who have updated CadÚnico data can take advantage of the new feature.
The forecast is that the government will spend R$ 41 billion per year with the Auxílio Brasil supplement, totaling almost R$ 90 billion per year when considering the R$ 47.5 billion already allocated to the program.