[Brazil] Interest rises may drive up the price of INSS payroll loans

In Brazil, pensioners and retirees from the National Institute of Social Security (INSS) who are considering a payroll loan may pay more when closing a deal, Mediarun Search reports.

From 2022, banks will be able to charge interest of up to 2.14 per cent per month. Currently, the percentage stands at 1.8 per cent.

With this type of salary loan, premiums are paid through direct debit to benefits. As a result of the guarantee of payment, the interest rates for this type of contract are lower in comparison to traditional personal credit.

The potential increases will also affect credit card transactions, whose rate will rise from the current 2.7 per cent to 3.06 per cent per month.

Bearing these incoming rises in mind, it is important that the insured INSS is made aware of exactly how much they will have to pay from now if they borrow any money through this payroll deduction option.

Source: Mediarun Search

(link via original reporting)

In Brazil, pensioners and retirees from the National Institute of Social Security (INSS) who are considering a payroll loan may pay more when closing a deal, Mediarun Search reports.

From 2022, banks will be able to charge interest of up to 2.14 per cent per month. Currently, the percentage stands at 1.8 per cent.

With this type of salary loan, premiums are paid through direct debit to benefits. As a result of the guarantee of payment, the interest rates for this type of contract are lower in comparison to traditional personal credit.

The potential increases will also affect credit card transactions, whose rate will rise from the current 2.7 per cent to 3.06 per cent per month.

Bearing these incoming rises in mind, it is important that the insured INSS is made aware of exactly how much they will have to pay from now if they borrow any money through this payroll deduction option.

Source: Mediarun Search

(link via original reporting)