December 3, 2022
Will the payroll loan for AUXÍLIO BRASIL be issued in October?

Will the payroll loan for AUXÍLIO BRASIL be issued in October?

In early August, President Jair Bolsonaro acknowledged that Payroll loans for beneficiaries of Brazil Aid Not yet on the market. Earlier this week, the Citizenship Department announced that it was “in ongoing negotiations” in favor of the release.

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“The Ministry continues its ongoing negotiations with all bodies and institutions involved in the process to further guarantee this right to the low-income population, without prejudice to the basic income guaranteed by the Federal Government to more than 20 million Brazilian families, through Auxílio Brasil,” he explained in a note.

However, the volume has not announced an official date for the method of reaching the public. expansion Payroll loans For the poorest residents is a promise made by President Jair Bolsonaro (PL), who is seeking re-election in October.

Even Citizenship Minister Ronaldo Pinto said in August that recruitment would start in September, but this should not happen.

What is the obstacle?

In this type of loan, the value of the installment is directly deducted from the interest of the contracting party, which reduces the chances of default. Although a decree with the regulations was published last month, the Department of Citizenship has yet to publish the supplementary rules.

One of the interests is interest ceiling. Without setting a threshold for fees charged by financial institutions, they can set the fees they want.

Experts criticize

Consumer protection organizations and experts criticize the offer of loans discounted from payroll to the public in Auxílio Brasil. They advocate that resources should be used for basic household expenditures, and claim that bargaining over benefits can increase the indebtedness of the population.

The government-approved text authorizes the use of up to 40% of benefits to hold payroll deductible loans. The large private banks have already stated that they do not intend to join the method.