After all, is it still possible to hold a Brazilian Aid loan?

Auxílio Brasil Loan is a method of giving credit created this year by the Bolsonaro government (PL). In this way, the beneficiaries of the social program can request a payroll loan, a method that deducts the payment directly from the customer’s source of income.

Although payroll is not new to the country, it is the first time that the method has been introduced to income transfer software users. Until then, only civil servants, retirees, and retirees from the INSS (National Institute for Social Security) could only hire the service.

Thus, the Auxílio Brasil loan has been available to residents since October 2022. Bolsonaro approved the method in August, but it was only regulated by the Ministry of Citizenship two months later, on the eve of the presidential elections.

Hence, many people are doubting whether it is still possible to get a Brazilian Aid loan. To find out the answer, keep reading this article.

Brazilian aid loan rules

Since it was announced, Auxílio Brasil’s loan has created huge repercussions. If, on the one hand, it facilitates access to credit for the low-income population, on the other hand, it represents a risk of indebtedness for the group that is in a situation of social weakness.

To request a payroll, the beneficiary needs to give away up to 40% of the Brazilian Aid. This percentage goes to the bank every month as payment. That is, he will only get R$360.00 out of R$600.00 interest.

Another point to consider is interest rates. There was an impasse between the financial institutions and the Ministry of Citizenship over this issue. Banks wanted to charge interest of up to 7% per month, which the volume considered high. Thus, the government has specified that the Auxílio Brasil loan can be offered at interest rates of up to 3.5% per month, more than double the amount deducted from the payroll and allocated to public servants, which has a rate of 1.72%.

Caixa Econômica Federal promises to be one of the banks with the lowest fees. While the state required 3.45% for this method, there are financial institutions that charge 2.89%. Thus, many economists have accused the federal government of using Caixa to provide the service, as a way to gain popularity before the election.

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Caixa changes the borrowing rules after the second round

Officially, the state-owned company has not announced any change in the rules of Auxílio Brasil’s loan contract. However, after the second round of elections, many recipients reported difficulties contracting for the service.

Thus, the UOL portal published an article stating that state-owned agencies were ordered to restrict the Auxílio Brasil loan. There is a list of recipients, who will not be able to staff the payroll, according to UOL.

However, there is still the possibility of ordering the service by the state-owned company. But the chance of approval is lower. If the beneficiary wishes, he can contract the payroll at other banks.

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