Caixa Tem Loan: understand how it works

Recently announced, Caixa Tem's exclusive credit line has caused quite a stir—and some questions—in the market and among the public: How does it work? Is it a viable option for all customers? Learn about the Caixa Tem loan.

To clarify the main questions about this new type of loan, we've created this content. In the text, we'll cover the following topics:

What is emergency aid?

Launched in 2020, emergency aid is a benefit created by the Federal Government to guarantee a minimum income to Brazilians amid the social isolation caused by the global COVID-19 pandemic.

Aimed at informal workers, individual microentrepreneurs (MEI), self-employed workers and the unemployed, the benefit would initially be paid in three installments of R$ 600.

But the program underwent an extension, gaining two more installments, totaling 5 installments of R$ 600.

After undergoing further extensions, the installments offered in 2021 were reduced from R$150 to R$4,375, depending on the beneficiary's family profile. Families generally receive R$150; female heads of households receive R$175, and single individuals receive R$150.

What is Caixa Tem Credit?

This new credit program developed by Caixa will be an exclusive line of small-value loans – known as microcredits.

This microcredit can be requested by both individuals – for personal expenses – and legal entities. – to invest in your own business, for example – and the release will be done gradually and must follow the users' birth month.

How will this line of credit work?

Initially, the amounts that can be requested are from R$ 300 to R$ 1 thousand, and the entire procedure will be carried out within the Caixa Tem application, being an online 100% loan modality.

In this new line of credit, the customer will be able to pay the borrowed amount in up to 24 installments, with interest rates of 3.99% per month.

To obtain the loan, it is also necessary to be approved by the credit analysis carried out by Caixa and, initially, the applicant's name cannot be negative in Serasa and SPC.

Types of loans offered

Caixa Tem offers two different loan options. These two options are automatically selected in the app, based on the customer's needs and the intended purpose of the loan. They are:

Caixa Tem Personal Credit

With free allocation, in this credit model the customer can use the amount for general expenses, paying off debts or even some financial emergency.

Caixa Tem Credit for your business:

Unlike the previous model, the allocation of this credit is geared towards purposes such as: assist with supplier expenses, purchase of raw materials/goods, payment of assistants/employees and fixed expenses, such as water, electricity, rent and telephone bills.

In both options, the application form, interest rates and deadlines are the same.

Who can apply for Caixa Tem Credit?

The credit modality may be requested by Caixa Tem customers, upon authorization for registration update.

According to Caixa, anyone who isn't already a Caixa Tem customer will be able to open a Poupança Digital+ account starting November 8, 2021. New customers will be able to open the account following the Caixa Tem Credit model and will have a pre-defined schedule. See the schedule below:

Born in January, February, March, April, May and June: allowed to register from November 8th;
Born in July and August: from November 29th;
Born in September and October: from December 13th;
Born in November and December: from December 27th.

How the update schedule will work

As mentioned previously, in addition to the release for new users, the release of the registration update to access this option in the Caixa Tem application will also follow an order, taking into account the user's month of birth.

As announced by Caixa, the update schedule will work as follows:

Those born in January and February: will be able to update their registration from September 27th
Born in March and April: from October 18th
Born in May and June: from November 8th
Born in July and August: from November 29th
Born in September and October: from November 13th
Born in November and December: from November 27th

This update is done directly in the Caixa Tem app, quickly and easily.

Main advantages and disadvantages of emergency aid loans

Advantages:

Easy access to loans: There is no need to leave home to apply for credit, as it can be requested quickly and digitally.

Available value: Following the microcredit proposal, the amount offered of up to R$1,000 can be a good option for small entrepreneurs who want to invest in their own business.

Disadvantages:

Analysis period: As we've already mentioned, an analysis is performed before approving or rejecting the application. Compared to the ease of applying for the loan, the 10-day analysis period leaves something to be desired.

Interest rate: Because it's a product geared more toward low-income families, the interest rate of 3.99 per month—almost 48% per year—can be a bit of a burden, depending on the customer's situation. This means it's not the best option for all situations.

Is it worth it?

Despite the ease and relatively low amount, before opting for this line of credit, it is necessary to think carefully.

When you take out a loan, you're taking on debt—in this case, for up to 24 months. In addition to the term, you need to be prepared for the interest charged and how it can impact your budget.

Consider these factors before choosing an option. This way, the chances of being negatively surprised in the future are significantly reduced.

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Nathalia P. Silva 1 de October de 2021