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The new INSS salary loan cap takes effect today;  See what changes

The new INSS salary loan cap takes effect today; See what changes

Retirees and retirees

lower salary cap for NSSI recipients to 1.91%; Caixa (1.70%) and BB (1.77%) exercise lower rates

InfoMoney team




INSS Service

Service at the agency INSS (Fábio Rodrigues Pozzebom / ABr)

On Monday (21), the reduction in the maximum interest rate on payroll loans for retirees and retirees from the National Institute of Social Security (INSS) went into effect.

The full National Social Security Council, on August 17, approved the Accuracypublished in the Federal Official Gazette, effective today, the INSS sets the maximum interest rate per month for payroll loan operations as follows:

  • until 1.91% For Social Security beneficiaries with the traditional method, it’s payroll deducted (previously 1.97%);
  • until 2.83% For transactions made by credit cards and payroll cards (previously 2.89%).

The justification given by the Social Security Ministry for the changes was a drop in the base interest rate, Cilic, from 13.75% to 13.25% per annum, Social Security Minister Carlos Lupe, who is also the commission’s board chairman, said last week.

Continue after the announcement

In March, the government lowered the cap to 1.70% per month, but was forced to backtrack, after pressure from banks, which suspended line offerings after the stroke.

reserved in banks

Caixa Econômica Federal, Itaú, Banco do Brasil, Bradesco and Santander Brasil continue to operate payroll loans for INSS retirees and retirees even after lowering the interest cap for this method.

Continue after the announcement

Shortly after the decision of the Central Bank’s Monetary Policy Committee (Copom), at the beginning of this month, Banco do Brasil and Caixa, two state-owned banks, announced a reduction in the INSS payroll withholding rate to , respectively. 1.77% and 1.70% per month. This is because the board only sets interest ceilings. Financial institutions bear the fees charged.

Itai, in turn, said last week that it would await “the publication of the new NSSI standard instructions to assess the necessary adjustments in the rates being exercised.”

Each bank charges fees according to its financing structure and its own distribution costs for credit. Caixa and BB tend to have the lowest rates among the big banks because most public payrolls are a customer of one of the two, which lowers the cost of customer acquisition.

Continue after the announcement

The Brazilian Federation of Banks (Febraban) has opposed lowering the payroll loan cap for INSS beneficiaries, claiming that the maximum set percentage of interest is lower costs Which part of the banks should submit the line.

The entity argues that the scale causes related distortions in the prices of financial products and has the opposite effect to that intended, undermining access to the product specifically by lower-income segments of the population.

“It will be up to each financial institution, given its business strategy, to assess the appropriateness of awarding payroll to INSS recipients under the new interest cap set by the Pension Board,” says Veerappan.

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(With info from Estadão Content)