Understand how it will be paid in 2023

a Payroll loan to beneficiaries of Brazil aid It was approved by Jair Bolsonaro’s government shortly before this year’s presidential elections. The utility credit method uses itself as collateral for debt repayment.

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The model has been the target of much criticism, and has been much discussed after the victory of Luis Inacio Lula da Silva (Workers’ Party), who assumed the presidency in January. The new government’s criticism of modernity is linked to high interest rates.

Installment suspension?

In recent days, citizens who take out loans have been bombarded with information that the payment of installments will be suspended in 2023 and the federal government will take responsibility for it. This is an unfounded rumor, like those who applied for loans Need to pay what they owe to the creditor banks even if the benefit is cancelled.

According to the rules of the method, the debt must be settled even if the beneficiary is excluded from the program payroll. That is: the contractor is committed to the debt, not the government.

In the Delivered Auxílio Brasil, repayment is possible in a maximum of 24 installments, with interest rates of up to 3.5%. A citizen can commit up to 40% of the utility value in installments, or R$160 per month.

Conference calls to review fees

At the end of November, a commission made up of former employees and directors of Caixa Econômica Federal sent a document to the president-elect warning of the dangers of being over-indebted to poor families who receive salary loans. The group suggests that Lula review the allowed interest rates.

The ceiling of 3.5% per month set by the Ministry of Citizenship is higher than the ceiling for salary loans for retired citizens. INSS (National Social Security Institute) which is currently 2.14% per month.

Caixa, the country’s largest state-owned bank, has an interest rate of 3.45% per month. The value is slightly lower on Pincred, which charges 2.89% per month. Other institutions that operate in this manner have not reported their interest rates.