Minister reveals how many installments the Auxílio Brasil may have

The banks will stipulate the number of installments that will be paid from the Auxílio Brasil payroll loan. Know more.

Estimated reading time: 3 minutes

Last Wednesday (3), President Jair Bolsonaro (PL) sanctioned the law that allows the contracting of a payroll loan by beneficiaries of Auxílio Brasil and the Benefício de Prestação Continuada (BPC).

Thus, with the new law, the beneficiaries of the programs can authorize the Union to deduct from the monthly transfers of the installments referring to the payment of the payroll.

In his profile on Instagram, the Minister of Citizenship, Ronaldo Vieira Bento, when answering a question, stated that “The bank will stipulate this deadline”.

‌“The interest rate, the grace period, the period for settlement and the amount of installments will be stipulated by the financial institution and not by the Ministry of Citizenship”, he also stated.

Consigned Loan from Auxílio Brasil

In summary, Auxílio Brasil beneficiaries who will receive BRL 600.00 from that month onwards may have up to BRL 240.00 deducted from the benefit every month for the payment of installments – 40% of BRL 600.00.

However, it is necessary to plan, since as of January, the value of Auxílio Brasil will once again be R$400.00. Thus, after the discount, families will receive only R$160.00.

According to the text of the law, companies will have to deliver to beneficiaries a statement with the contracted amount, percentage of interest rates charged and the final amount to be paid.

Experts criticize the loan

Consumer protection organizations and finance experts claim that the payroll loan can lead these families benefiting from the social program to over-indebtedness, putting them back in a vulnerable situation.

Interest rates should remain practically at the same level as for personal credit without payroll, which currently stands at 87% per year.

Furthermore, even if the citizen ceases to receive the benefit, as he no longer meets the government’s criteria, he must continue to pay the payroll loan.

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Image: rafapress / Shutterstock.com

About Abhishek Pratap

Food maven. Unapologetic travel fanatic. MCU's fan. Infuriatingly humble creator. Award-winning pop culture ninja.

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