Will banks be required to offer payroll loans?

Check out more about the loan possibilities at each bank

Estimated reading time: 3 minutes

President Jair Bolsonaro has just signed a decree published in this Friday’s edition (12) of the DOU (Diário Oficial da União). With this, the government regulates the payroll loan process of Auxílio Brasil.

The proposal is that the beneficiaries of the program can receive a credit of up to 40% of the value of the installment, at interest determined by each bank. However, even with the approval of the loan permit, do banks have an obligation to release the amount? So, to know the answer, check out below.

Auxílio Brasil: do banks have an obligation to offer payroll-deductible credit?

First, it is worth mentioning that in order to start releasing the loans, it is still necessary for the Ministry of Citizenship to create complementary rules. With this done, those who receive Auxílio Brasil and other government benefits, such as the BPC, will be able to apply for payroll-deductible credit.

As we explained, this type of loan allows for a discount of up to 40% of the benefit amount. However, it is possible to hire it at different banks, and each institution must determine the interest rate they want to apply. But it must be said that banks are under no obligation to make this loan. It is only necessary for the institution to be accredited by the government.

Finally, it is worth mentioning that some banks have already announced that they will not operate this line of credit for beneficiaries of Auxílio Brasil. Itaú Unibanco and Bradesco are examples of these institutions. Now, it is up to the ‌Ministry of Citizenship to establish the requirements to qualify financial institutions for the loan.

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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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