FGTS Loan Banco do Brasil: how does it work?
Have you heard of Banco do Brasil's FGTS loan? Everyone knows that FGTS can be a great way out in times of financial crisis.
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The amount, which many Brazilians often use to pay off debts and even to help finance real estate, has a purpose that many people are still unaware of.
And that's what we're going to talk about today.
A new exclusive credit line offered by Banco do Brasil for those who have already signed up to the modality FGTS Anniversary Withdrawal is available to customers who need that extra money to balance their financial lives.
Want to know how this modality works? We'll explain!
In this article, we've gathered key information about the loan to help you decide if it's the best option for you. The text will be divided into the following topics:
– What is the anniversary withdrawal?
– How is the anniversary withdrawal amount calculated?
– What about the advance on the anniversary withdrawal?
– How does this loan model work?
– What is the interest rate for early birthday withdrawals?
– Bringing forward the anniversary withdrawal Bank of Brazil
– Is it really worth bringing forward your anniversary withdrawal to apply for a loan?
- Conclusion
What is the anniversary withdrawal?
The FGTS anniversary withdrawal is an amount released every year in the worker's birth month.
This way, the client receives a portion of the balance available in the account that is used in their employment contract.
And, in addition to this installment, the worker can also withdraw a percentage of their balance from the Severance Indemnity Fund (FGTS).
When opting for the anniversary withdrawal, this amount must be made available on the first business day of the employee's birthday month.
How is the anniversary withdrawal amount calculated?
Finding out how much money is available for your anniversary withdrawal is easy. Just do the following:
- From 5% to 50% of the total balance of your FGTS + an additional fixed installment proportional to the value.
To make it easier to visualize, we have created the following table, with the values and percentages:
| Available balance range limit | Percentage (%) | Additional installment value |
| Up to R$ 500.00 | 50% | – |
| From R$ 500.01 to R$ 1,000.00 | 40% | R$ 50.00 |
| From R$ 1,000.01 to R$ 5,000.00 | 30% | R$ 150.00 |
| From R$ 5,000.01 to R$ 10,000.00 | 20% | R$ 650.00 |
| From R$ 10,000.01 to R$ 15,000.00 | 15% | R$ 1,150.00 |
| From R$ 15,000.01 to R$ 20,000.00 | 10% | R$ 1,900.00 |
| Above R$ 20,000.01 | 5% | R$ 2,900.00 |
For example: if a worker has a birthday in August and has a total FGTS balance of R$ 500.00, his/her installment will be R$ 250.00 (40% of the total amount + additional installment) and can be withdrawn until the end of October.
What about the advance birthday withdrawal?
In this modality, available since 2020 at Banco do Brasil, the customer can request a loan and use these future withdrawals as collateral.
Thus, payment is made automatically the moment the benefit is released.
How does this loan model work?
With this line of credit, the customer can request an advance of up to three years of payments for the FGTS anniversary withdrawal, with a minimum amount of R$ 1 thousand per transaction.
Who can apply for this type of loan?
This line of credit is only available to customers who opted for the anniversary withdrawal.
What is the interest rate for early birthday withdrawals?
With rates from 0.99% per month, when comparing with the interest rates applied to other lines of credit on the market, this is one of the lowest rates.
The low interest rates are due to the fact that, like payroll loans, institutions also understand that the transaction offers a lower risk of default than others.
Advance your anniversary withdrawal at Banco do Brasil
After making the decision to opt for this advance, the customer must authorize the financial institution to access the FGTS balance.
This operation can be carried out directly through the FGTS app – available for download on Android and iOS systems – or through the website.
The "Authorize banks to consult my FGTS" option will be available as soon as you access the app/website. Select the Banco do Brasil option and confirm.
Still on the website/app, you can check the expected amounts for each anniversary withdrawal installment you wish to advance.
Then, access the Banco do Brasil app to continue the application process.
In addition to the website and app, you can also apply for your loan at any branch or through the Banco do Brasil Customer Service Center.
After completing your request, your order is sent for review. Once approved, the funds are automatically deposited into your account.
Is it really worth bringing forward your anniversary withdrawal to apply for a loan?
That depends a lot.
This option can be a good option for those who find themselves in a more complicated financial situation and need the money to pay off more urgent debts or even supplement their income after a difficult period such as the COVID-19 pandemic.
In addition to this situation, opting for this line of credit may be viable when it is necessary to pay off debts that have higher interest rates, such as overdrafts or credit cards.
This way, you will be exchanging higher interest rates for lower rates.
If you are not yet eligible for the anniversary withdrawal and are considering doing so just to be able to take out the loan, you might want to think again.
Remember that this will compromise the total balance of your severance pay fund in the event of unfair dismissal for the next two years. This amount may be missed in the future.
Conclusion
As we explained, depending on your current situation, this line of credit option may be a viable option for you.
Remembering that, even with not so high interest rates, we are still talking about a loan and the advance of an amount that can be very important for your pocket in the future.
But, before making a decision, run simulations between the credit options available on the market to properly assess the conditions of each one.
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