Payroll loan from INSS: how to apply

If you are retired or a Social Security pensioner, there is a very interesting product for you: the National Social Security Institute (INSS) payroll loan.

However, with this option, you can commit up to 35% of your income to borrowing. This percentage is known as the assignable margin.

It's a low-risk loan, as the discount is made directly from the applicant's retirement or benefit, but the rates are much more competitive than other credit options. 

However, the average interest rate on public payroll loans is 2.08% per month. Interesting, isn't it?

Another benefit is the repayment term, which can vary between 12 and 72 months, depending on each bank's policy. Not to mention the ease of access to this product, which involves minimal red tape to sign up and receive the funds. 

Who can do it?

The INSS payroll loan is available to retirees and pensioners of Brazil's Social Security. However, there are a few essential requirements to consider:

• In principle, the loan must be taken out with a financial institution affiliated with the INSS;
• Then the contract and authorization must be signed in advance by the beneficiary with the consignment authorization;
• Immediately after, authorization must be given expressly, in writing or electronically and in an irrevocable and irreversible manner.

So, be alert if you receive a call like this. It could be a scam attempt. 

What are the advantages of the INSS payroll loan?

The main advantage of this product is definitely the interest rate, which is much more attractive than other types of loans. 

Since you are certain to receive your benefit every month, it is a kind of guarantee that the bank has.

According to the INSS website, the maximum monthly interest rate that each bank can charge is:

• 1.8% for personal loans;
• 2.7% for assigned credit cards.

This interest rate already includes all operating costs for the personal loan and credit card.

How to apply for a loan?

To take out a loan, you need to go to a bank or financial institution affiliated with the INSS. 

Search for partner companies on Meu INSS and choose the one that best fits your needs, considering important factors such as interest rates and payment terms. 

Remember that there is a maximum limit on the interest charged, and this applies to all banks.

After choosing your financial institution, schedule an appointment and you'll be provided with a list of all the documentation you need to apply for a loan or obtain a payroll credit card.