Those who receive Auxílio Brasil, as well as other government income transfer benefits, will be able to take out a payroll loan with a direct discount at source.
The government published in the “Official Journal of the Union” this Tuesday (27) an ordinance that regulates the payroll loan for beneficiaries of Auxílio Brasil.
In the payroll loan, the discount of up to 40% is direct at source. As the installments are deducted directly from the payroll, the banks are guaranteed that the installments will be paid on time.
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The measure is criticized by experts, who point to the risk of even greater indebtedness of the most vulnerable population (read more below).
See below the questions about granting bank loans to beneficiaries of Auxílio Brasil:
1. What is Auxílio Brasil and what is the value?
A cash transfer program that replaced Bolsa Família, Auxílio Brasil is intended for families in extreme poverty, with a monthly per capita family income of up to R$ 105. Families in poverty, with a monthly per capita family income between R$ R$ 105.01 and R$ 210, can also receive, as long as they have, among their members, pregnant women or people under 21 years old, and those in poverty.
Between August and December 2022, the minimum benefit amount is BRL 600 per family. However, originally it is R$400 – the R$200 increase was approved by Constitutional Amendment 123, the so-called “PEC Kamikaze”, which created a state of emergency to increase government spending outside the spending cap and circumvented the electoral law, which prohibits an increase in social benefits in an election year.
2. What is a payroll loan?
It is a type of loan in which the monthly installment is deducted directly from the payroll. Until then, it was intended for retirees and pensioners of the National Institute of Social Security (INSS), workers with a formal contract and public servants. But a provisional measure by the government authorized the granting of this type of loan, also, to the beneficiaries of social programs.
3. What is the advantage of the payroll loan in relation to other loans?
As the installments are deducted directly from the payroll, banks are guaranteed that the installments will be paid on time. With this, it can have lower interest rates, and is, in general, a cheaper type of credit compared to other types offered on the market.
4. What is the maximum loan amount that can be taken out?
According to Law 14,431, of August 3, the maximum amount that can be contracted will be the one in which the installments commit up to 40% of the monthly benefit amount. But instead of considering the current minimum benefit amount of R$ 600, which is only valid until December, the amount of R$ 400 will be valid. Thus, the amount of the installment will be a maximum of R$ 160.
5. How many installments can the loan be paid in?
The ordinance also establishes that the maximum number of installments will be 24.
6. What will the interest rate be?
According to the Ministry of Citizenship, the interest rate cannot exceed 3.5% per month. But it is the bank that will define the rate – as long as it is below this level.
“The ordinance establishes the interest limit of 3.5% per month. This ceiling may be even lower, depending on the negotiation between the financial institution and the borrower,” the ministry said in a statement.
Government discloses details of the Auxílio Brasil payroll loan
7. How will payment be made?
The government will deduct the loan installments from the benefits on a monthly basis. Thus, the beneficiary will receive only the remaining amount.
8. What if the person who hires the payroll has the Auxílio Brasil cancelled?
According to the rules, if the benefit is canceled the loan will not be cancelled. In other words, even if they stop receiving Auxílio Brasil, the beneficiary needs to organize themselves to pay the loan every month until the end of the contract term, depositing the amount of the installment in their account.
Government regulates payroll loans for beneficiaries of Auxílio Brasil
9. What if I can’t pay? Can I renegotiate?
As the loan installment is deducted directly from the benefit amount, this possibility does not exist. The beneficiary will already receive the amount of Auxílio Brasil with the discounted installment.
This also makes it difficult for the beneficiary who wants to renegotiate the debt. What will be possible will be to carry this loan to another bank, which will offer more advantageous conditions.
10. What if my benefit amount changes?
If there is a change in the value of the benefit or the assignable margin, the new loan conditions must be agreed between the financial institution and the beneficiary, without new operating costs. The collection of the undiscounted installment amount or the residual balance of the partially discounted installment is the sole responsibility of the financial institution with the borrower.
11. Will all banks offer payroll loans to those who receive Auxílio Brasil?
To offer the payroll loan to beneficiaries of Auxílio Brasil, financial institutions, including banks, will need to be accredited by the government.
Among the banks most likely to offer the payroll loan is Caixa Econômica Federal, which operates the government’s social programs, in addition to Banco do Brasil. Private banks have already expressed a lack of interest in operating the credit line.
12. What will the bank have to inform about the payroll loan?
At the time of entering into the loan, the financial institution must inform the beneficiary:
- the total amount with and without interest;
- the effective monthly and annual interest rate;
- all remuneration, moratorium and tax increases that may eventually affect the value of the contracted credit;
- the value, number and periodicity of the installments – the value of the installment must be whole, not being allowed the information of cents at the time of contracting;
- the total sum payable on the personal loan;
- the start and end date of the discount;
- the amount of the commission paid to outsourced workers hired by the financial institutions to carry out the sale of credit, when not carried out by their own network;
- the CNPJ of the bank branch that carried out the contract when carried out in the network itself, or the CNPJ of the bank correspondent and the CPF of the agent subcontracted by the previous one, plus address and telephone number;
- the net value of the benefit remaining after the eventual contracting of the loan.
The ordinance also includes a model questionnaire that must be presented by the financial institution to the beneficiary at the time of contracting the loan.
Among the questions that the beneficiary will have to answer are whether the loan amount is clear, the monthly interest rate, the total amount that will be paid at the end of the contract and the loan term, in addition to the amount of the installment and until when it will be paid. there. And if he has already done the math to see if he will be able to honor this commitment along with the other day-to-day expenses.
In the questionnaire, there is also an excerpt that says: “The Auxílio Brasil payroll loan is an option that should only be used in cases where you really have a problem that you cannot solve without making this contract. of your community can offer you another solution, where you don’t have to pay interest”.
13. Is it worth doing the payroll?
The offer of payroll-deductible loans through Auxílio Brasil has been criticized by specialists and entities. They allege that the measure could be harmful to the population, because the resources of the income transfer program are usually used for basic survival expenses.
With the loan, however, the citizen can have up to 40% of the benefit discounted before payment. Private banks have already expressed a lack of interest in operating the credit line.
Taking out a payroll loan linked to Auxílio Brasil can be worthwhile for those who have an urgent and urgent need – but not to pay day-to-day bills, or to make unnecessary purchases.
This is because the credit can compromise the beneficiary’s disposable income for a long term. Thus, you may lack money for several months to make essential expenses, such as food.
14. What should I do in case of improper charges?
In situations where an undue discount of installments is found due to improper contracting, divergence in the contracted amount or in which the discount occurs in an amount greater than the established limit, the financial institution will be responsible for returning the amount unduly consigned.
The return of the amount must be carried out within a maximum period of two business days from the finding of the irregularity, corrected based on the variation of the Selic rate, from the due date of the installment referring to the undue discount on the payroll until the business day prior to the actual return. , directly into the Auxílio Brasil payment account.
When an indication of irregularity is identified in the process of contracting or discounting the Auxílio Brasil payroll loan, Senarc must initiate a procedure to investigate the irregularity to regularize the situation or cancel the loan contract.
The evidence may be identified through cross-checking of information carried out preventively by Senarc, by the control bodies or by the filing of a claim by the borrower.
In cases where the discount on payroll loan installments has occurred in benefits that may be considered irregular, the amounts transferred to financial institutions must be reimbursed directly to the Ministry of Citizenship, in the competence following the final decision to determine the irregularity.