March 25, 2023

Bad news for those receiving BPC/LOAS

The citizens served by the BPC no longer enjoy the service provided by the banks from now on. know more!

On Monday (6), the National Institute of Social Security (INSS) officially terminated the payroll loan for Continuing Support Benefit (BPC) recipients. This action is introduced based on the recently launched new Bolsa Família script.

It should be noted that the credit method was issued last year, during the Bolsonaro government. At that time, low-income citizens with BPC can order the line, at up to 40% off the benefit value.

However, the service presented a series of problems and was suspended on more than one occasion. Now, all banks and financial institutions are prohibited from offering line of credit. The decision was published in the Official Gazette (DOU).

BPC / LOAS Payroll Loan

From March 2022, people helped by BPC will be able to commit up to 40% of benefits to payroll loans, with a direct deduction from payroll. This measure was part of the Income and Opportunity Program, which is a set of measures launched by the previous administration.

The Bolsa Família’s Provisional Measure (MP), made changes to Article 26 of the legislation published in 2003, which was amended by Bolsonaro’s deputy government and approved by the National Congress.

Faced with this reality, the law is reverting to the way it was in the past and only payroll loan will be approved for INSS retirees and retirees.

As mentioned earlier, the type of credit offered to BPC beneficiaries and subsequently offered to families assisted by Auxílio Brasil has been widely criticized by analysts.

Who receives BPC?

BPC is paid by the Brazilian government to seniors over 65 years of age and people with disabilities whose per capita household income is 1/4 of the current minimum wage.

To receive the benefit, it is necessary to register in the individual registry (CadÚnico) and undergo a social and medical assessment. The social assistance is worth one minimum wage and you do not have to have contributed to the INSS to receive it.

Photo: Alison Nunes Calazance /