Approved new interest rate ceiling for payroll loans

New interest rate ceiling for payroll loans approved

Attention: it will become more expensive to take out a payroll loan from January 2022.

Firstly, the payroll loan is directly linked to the payroll, on the pay slip or in relation to the INSS.

Experts

According to experts, companies believe they will face fewer problems if they rely on public employees, pensioners, and retirees. It's clear, for example, that institutions focus on loans that create greater security.

The loan is deducted directly from your payroll or INSS benefit.

National Social Security Council

Initially, at the beginning of December, the National Social Security Council (CNPS) approved an increase in the interest rate ceiling charged on loan operations for INSS retirees and pensioners.

The change was allowed taking into account the increase in the basic interest rate (Selic) and the National Consumer Price Index (INPC) in recent months. 

In return for this measure, the monthly interest rate on payroll loans increases from 1.8% to 2.14%. For transactions made using the same credit card, the rate increases from 3% to 3.06% per month.

Financial institutions

In practice, this means that financial institutions can increase the rates they charge for loan services, so it is important to evaluate different options before signing up. 

Considering the impact of these changes on the pockets of retirees and pensioners, CNPS advisors emphasized the importance of financial education for beneficiaries. 

New interest rate ceiling for payroll loans

Therefore, the resolution that will regulate the decision will establish the Financial and Pension Citizenship Program, which will discuss initiatives to increase transparency, competition, and reduce the costs of payroll loans. The working group will be funded by resources from financial institutions that operate this type of credit.