Government reduces interest cap charged on payroll loans for INSS beneficiaries

[ad_1]

Interest cap will change from 2.14% per month to 1.70%, in the case of conventional payroll loans. For those who use a credit card, the ceiling will rise from the current 3.06% to 2.62%. The National Social Security Council (CNPS) approved this Monday (13) the reduction of the maximum interest rate charged on payroll loans for INSS retirees and pensioners. The interest ceiling will go from 2.14% per month to 1.70%, in the case of the conventional payroll loan. There were 12 votes in favor of the change and three against. The interest ceiling on payroll credit card operations will rise from the current 3.06% to 2.62%. The new rates come into force as soon as a normative instruction is published in the “Official Gazette”. The Ministry of Social Security has not yet informed the deadline for publication. The reduction of the interest ceiling was a proposal made by the government. In a social network, the Minister of Social Security, Carlos Lupi, said that “lowering interest rates is the flag of our government, and as far as the Ministry of Social Security depends, we will always be ready to help!”. The National Social Security Council has government representatives, retirees, companies and workers. The payroll loan is the one that already comes with the discount already in the payroll or in the benefit. Therefore, it usually has lower interest rates than financing that is not charged directly at source. According to the Ministry of Social Security, eight million INSS beneficiaries have an active payroll contract and around 1.8 million have already reached the limit of use, which is a commitment of up to 45% of their income.

[ad_2]

Source link