Ministry study limit interest rate

Members of the Ministry of Citizenship are studying the possibility of creating a rule limiting the interest rate for consigned Auxílio Brasil. The information has not yet been officially confirmed by the folder, but it is already circulating behind the scenes. As a general rule, banks have the power to decide on the rate they will offer on the loan.

Last week, the Minister of Citizenship, Ronaldo Vieira Bento, used his social networks to talk about the topic. At the time, he assured that the Ministry had no intention of limiting terms or interest rates for the Social program’s payroll. Thus, banks would be completely free to set a value.

However, last Monday (8), President Jair Bolsonaro (PL) participated in an event with representatives of the National Federation of Banks (Febraban) to ask institutions to offer lower interest rates. The head of state also asked bankers not to stop offering the program’s consignment.

After this meeting, the Minister of Citizenship, who had denied the possibility of limiting interest rates, took a step back. In an interview for the program A Voz do Brasil, Vieira Bento deflected when asked about the imposition of a limit. “We are in constant interaction with Auxílio Brasil beneficiaries and in a process of improvement”, he said.

Officially, the text of the Provisional Measure (MP) that releases the payroll has already been approved by the Chamber of Deputies and the Federal Senate. Last week, the document was also sanctioned by President Jair Bolsonaro. However, the law still needs regulation from the Ministry of Citizenship. There is still no date for the definition of this process.


Without a regulation that imposes limits on interest, the fact is that some financial companies are already offering credit at higher rates than the market average. In some cases, the percentage offered is close to 100% per year.

According to analysts, higher rates can be unfair, especially with the poorest population. After all, they could have to return a lot more money than they actually received with the application.

Imagine, for example, that a citizen requests a loan in the amount of R$ 2 thousand to be paid for two years. Considering the rate of 98% per year, he would have to return more than BRL 3,800 in this period. The bank would earn BRL 1,800.

Banks eyeing the consignment

Some of the largest banks in Brazil have already announced that they will not offer the Auxílio Brasil payroll loan. This is the case, for example, of Bradesco and Itaú/Unibanco. Presidents of the institutions confirmed the information this week.

As an argument, they explained that the practice of payroll loans for a vulnerable public, as is the case of Auxílio Brasil users, would not be a good option. So they decided not to operate the line.

On the other side of the story, banks such as Banco do Brasil and Caixa Econômica Federal have already signaled that they will offer payroll loans. Caixa, in fact, has already announced that it will offer the lowest interest rates on the market.

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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