The National Social Security Council reduces interest on INSS loans | Economy

The National Council of Social Security (CNPS) approved on Wednesday (11) a new reduction in the interest rate limits for salary loans for INSS beneficiaries.

The maximum limit for payroll deduction loans has been reduced from 1.91% to 1.84%.

For credit card and payroll credit card transactions, the maximum index has been adjusted from 2.83% to 2.73%.

Changes to maximum interest rates will come into effect next Monday (23).

According to the Department of Social Security, the changes come on the heels of a recent drop in the SELIC rate.

The National Social Security Council also decided that financial institutions must provide minimum funeral and life insurance assistance to INSS beneficiaries.

The deadline for banks to adapt to these new requirements is 30 days.

In March, the CNPS decided to lower the interest ceiling on traditional payroll loans for INSS beneficiaries from 2.14% to 1.70%, leading to an impasse with banks.

At that time, Banco do Brasil, Caixa Economica Federal and other private banks temporarily suspended the offer of this credit, stating that prices would not cover the costs of the operation.

The council then agreed to a “compromise,” and the ceiling was set at 1.97%. In August, there was further reduction.

On Wednesday, after the Council’s decision, the Brazilian Banking Federation (Febraban) and the Brazilian Banking Association (ABBC) criticized the interest rate cuts.