maximum loan amount granted drops more than ten times with change in rules

The changes established by the federal government in the rules for granting the Auxílio Brasil payroll loan (which is renamed Bolsa Família) will bring down the maximum credit limit that can be accessed by beneficiaries of the income distribution program. The difference between the maximum amount borrowed under the old rules is more than ten times, compared to the amount released with the new conditions, according to a simulation made at the request of EXTRA by Professor of Economics at Ibmec-RJ Caio Ferrari.

CadÚnico fine-tooth comb: Government identifies 2.5 million benefits with problems

The government has set 5% limit for payroll deduction (percentage of the benefit that can be committed with the payment of the monthly installment). This assignable margin was previously 40%.

As a result, previously the maximum amount that could be discounted for the monthly payment of the debt was R$160. The calculation took into account the R$400 of the benefit, and not the current R$600 — since, at the time of the definition of the rules for granting the Bolsa Família payroll loan, there was still no certainty that there would be room in the 2023 Budget for the maintenance of R$ 600.

Now, the payable margin drops to R$30, equivalent to 5% of the R$600 (benefit value that ended up being confirmed this year).

Number of installments has been limited

In addition, the federal government limited the six monthly and successive installments the deadline for paying off the loan, which previously could be paid off in up to 24 months. already the interest rate per month increased from 3.5% to 2.5% per month.

The changes are only valid for families benefiting from Auxílio Brasil who access the loan from this Friday (the 9th). The new rules are contained in an ordinance published this Thursday (the 9th) by the Ministry of Development and Social Assistance in the Official Gazette.

Read more: Minister classifies old rules of the payroll loan of the Brazil Aid as ‘perversity’

Simulations

According to the calculations of the Ibmec-RJ professor, in the past scenario, the total loan granted to a Bolsa Família beneficiary was a maximum of R$ 1,684. That’s because, of the total BRL 3,840 he would pay at the end of the day — paid in 24 installments of BRL 160 — BRL 2,156 was accrued interest in the period.

With the new rules, the total amount of money released to the beneficiary as a loan will be a maximum of R$ 155, plus R$ 25 in interest. This will total the BRL 180 he will pay at the end of the day, which is the maximum allowed with the assignable margin of 5% on BRL 600, over six months (six installments of BRL 30).

— The calculation does not take into account possible fees that may be incurred in releasing the loan — explains Caio Ferrari.

‘Alignment with reality’

Coordinator of the Financial Program of the Brazilian Institute of Consumer Defense (Idec), economist Ione Amorim assesses that the changes in the rules are a conservative and precautionary measure, but that allows the credit granted to be more aligned with the financial reality of the beneficiary families of the Bolsa Familia (formerly Auxílio Brasil)l:

— What existed before was an incentive for people to take credit with a promise that they would undertake and solve problems — analyzes Ione: — This credit is an emergency measure. The six-month period and the reduced amount allow the family to breathe, enter the sport and leave. It is better for the government to adopt a more conservative policy now, but in line with the reality of families.

Caixa revises conditions

Idec calculations estimate that since the start of the credit operation in October last year, R$9.5 billion in loans have been granted to 3.5 million beneficiary families, with Caixa Econômica Federal being responsible for R$4. for every R$5 borrowed, totaling R$7.64 billion.

The public bank was the only one among the largest in the country to qualify for the modality, but 11 other financial institutions are accredited.

In mid-January, however, the Caixa suspended the modalityon the grounds that the Ministry of Social Development would review the registration of Auxílio Brasil beneficiaries and that the interest rates were high, in the words of the bank’s president, Rita Serrano.

With the changes made this Thursday, Caixa informed that the new rules are under analysis and will be included in “ongoing studies to review the operating conditions of the credit line”.

“Until the analyzes are completed, new concessions remain suspended by the bank. For contracts already signed, nothing changes. The payment of installments continues to be carried out automatically, through the discount on the benefit”, said the bank, in a note.

Other financial institutions authorized to operate the modality also suspended the concession. This is the case of Pan and Daycoval banks. EXTRA also contacted Agibank, Crefisa, Banco Safra, Capital Consig Direct Credit Society, Facta Financeira, Pintos S/A Credits, Valor Direct Credit Society, QI Direct Credit Society and Zema Financiamento e Investimento, but has not yet received a response.