INSS authorizes return of BPC payroll loan – 07/07/2023 – Market

The INSS (National Institute of Social Security) will again release the payroll loan for those who receive the BPC / Loas (Continued Provision Benefit), assistance income paid to the elderly and low-income people with disabilities.

Beneficiaries can commit up to 35% of the benefit. The BPC is paid at the minimum wage (R$1,320 in 2023) and, with a 35% margin, this represents up to R$462 per month.

The value of the margin for loans was reduced to be different from the limit adopted for other INSS benefits, such as retirement, of up to 45%.

Social Security predicts that the credit service will be available at the end of August, but informs that it is still necessary to complete internal regulations and make adjustments to the system.

The body did not say whether there will be a maximum interest rate allowed, as with payroll deductibles for retirees, and whether indexes have already been defined.

wanted by SheetCaixa Econômica Federal, Banco do Brasil, Bradesco, Itaú, Santander, C6 Bank and Banco Pan informed that they will offer the payroll loan service to BPC/Loas.

Banrisul, Banco Daycoval, Inter and Banco Mercantil informed that they are waiting for direction from the INSS to define whether they will offer credit in this modality.

According to Febraban (Brazilian Federation of Banks), the granting of payroll loans to other INSS benefits is beneficial, as it allows the contracting of operations with lower interest rates, if necessary, and the disposal of those who need financial resources quickly and cheaper.

In a note, the federation said that both the associated banks and the INSS are able to make it possible to contract loan or payroll card operations for INSS beneficiaries and retirees.

The new payroll loan discount percentage will be 35% of the value of the BPC/Loas, in which 30% is earmarked for loan operations discounted from payroll and 5% to cover expenses with a payroll credit card.

BPC/Loas is a monthly assistance benefit worth one minimum wage for seniors over 65 and people with disabilities whose family income per person is up to R$ 330 and is registered in the CadÚnico (Cadastro Único), with the data of all family members.

Today, more than 5 million people are covered by the benefit and, in May of this year, 529,695 people were in line at the INSS waiting for a response to the assistance income request.

Adriane Bramante, president of the IBDP (Brazilian Institute of Social Security Law), considers that the release of the BPC/Loas payroll deposit puts the beneficiary at risk of greater vulnerability because it is an assistance income and that it must be renewed.

“It ends up being a solution that does not solve anything for a person in a vulnerable situation, because it is a benefit that is not of a social security nature, and you approve the loan that compromises the income [da pessoa]an important part of the value”, he says.

The release of payroll loans for benefit holders will be made after the INSS interrupts BPC/Loas payroll loan operations by provisional measure 1,164, of the new Bolsa Família, published in March of this year.

Since March 2022, BPC beneficiaries have been authorized to commit up to 40% of the benefit to payroll, which has a direct payroll deduction. The changes were part of the Income and Opportunity Program, a package of economic measures launched by the Bolsonaro government in an election year, seeking to attract votes for the former president.