The Auxílio Brasil loan has been regulated! Find out!

Interest rates on Auxílio Brasil loans cannot exceed 3.5%. Read the text to learn more about the Auxílio Brasil loan rules.

Almost a month late, according to the deadline that the government had set to present the regulations for the Auxílio Brasil loan, on September 26, 2022, it finally released the rules. 

The expectation was that interest rates would be low, as it is a payroll loan and intended for the public under a social program.

However, the institutions were charging absurd interest rates on pre-registration simulations. 

However, as the Auxílio Brasil loan was regulated, they cannot charge interest rates above the ceiling set for that credit product.

Continue reading and find out more details!

Text index:

• How will the Auxílio Brasil loan work?
• Interest rates;
• Plots;
• Grace period;
• Loan amount;
• Time for the bank to transfer the credit;
• Can people with bad credit apply?
• Can those who applied for Caixa Tem Credit apply for a loan?
• What happens to those who have already pre-registered for the Auxílio Brasil loan?
• What happens if my benefit is suspended while I pay my loan installments?
• Can I pay off the loan early?
• Conclusion.

How will the Auxílio Brasil loan work?

THE Aid loan will be a consigned model. This means that the installments will be automatically deducted from the benefit. 

One of the rules published in regulation is that this credit cannot be paid in more than 24 installments. 

Furthermore, the requested amount must be deposited directly into the account where the applicant receives the Auxílio Brasil payment.

This way, you won't need to open a new account to receive the requested credit. 

It can be contracted at any registered financial institution that will provide this credit model. 

Check below the main rules presented in MC Ordinance No. 816.

#Interest rate

The ceiling of the interest rate on the Auxílio Brasil loan is 3.5%. This means that no bank can apply an interest rate higher than this percentage. 

Therefore, before choosing a bank to apply for this loan, compare interest rates and be aware that none of them can charge interest above 3.5% per month. 

#Plots 

The loan cannot be made in installments longer than 24 months. By calculating this number with the amount of the assignable margin, you can get an idea of how much you can borrow. 

See an example below: 

Loan installment	Number of installments	Value
R$160.00	24x	R$3,840.00

The value above is just an example based on the value and number of installments, without considering the interest rate applied.

However, considering the interest rate of 3.5%, you will receive R$2,600.00. If the interest rate is lower, the amount received will be greater. 

Additionally, some institutions may offer a lower rate upon completion of a credit analysis.  

#Grace period

Payroll loans have a grace period, which refers to the time you will start paying back the loan, counting from the date the contract is signed. 

One of the main advantages of this credit model is precisely this grace period, as some banks give the customer up to 120 days to pay the first installment of the loan.

However, banks will not be able to provide this grace period for the Auxílio Brasil loan.

When requesting the loan, the first installment will be discounted in the next benefit payment. 

#Loan amount

Because this is a payroll loan, it must adhere to the assignable margin. According to this, beneficiaries cannot commit more than 40% of the benefit to the loan installments. 

This consignment will be carried out based on the current aid of R$400.00, because the aid of R$600.00 is part of a provisional measure and lasts until December.

Therefore, 40% of R$400.00 = R$160.00. This will be the maximum installment amount. The maximum number of installments is 24x.

You can request the amount you want, as long as the installments do not exceed 24x of R$160.00, which gives a total of R$3,840.00, as we can see in EXAMPLE above. 

Thus, considering the interest rate of 3.5%, this value drops to R$2,600.00.

#Time for the bank to deposit the credit

After collecting the applicant's signature, the bank will have up to 2 business days to transfer the contracted amount. 

Furthermore, the money must be deposited into the same account where the applicant receives Auxílio Brasil. 

Can people with bad credit apply for the Auxílio Brasil loan?

Yes. However, banks are not required to grant credit to those with bad credit. Because it's a payroll loan, it's less bureaucratic. 

However, as it is not a lifetime benefit, meaning it can be suspended in certain situations, banks may impose certain rules and not accept those with bad credit, for example. 

To be sure, find an institution that accepts those with bad credit. Caixa will probably accept it. 

I'm paying off my Caixa Tem loan. Can I apply for a payroll loan from Auxílio Brasil?

Yes. Caixa Tem credit is not related to payroll loans. Beneficiaries can apply for the credit even if they already have other active loan agreements. 

What happens to those who have already pre-registered?

After the disclosure of the rules of the Auxílio Brasil loan, the banks canceled the pre-registrations they had already made with some beneficiaries. 

Mainly because the interest rates being charged were higher than 3.5%. 

They will certainly update themselves on the rules, and anyone who has already registered will be able to apply for the loan normally, but with an interest rate.

What happens if my benefit is canceled while I'm paying off my payroll loan?

It is important that you are aware that you are taking on debt and that it is certainly your responsibility.

If your benefit is cut off before the debt is paid off, you will need to continue paying the installments in some way or you may end up on the defaulters' register.

Can I pay off the loan early?

Yes. You can pay off the loan early if you wish. The bank may even offer a special discount to beneficiaries who wish to pay the full amount.

Conclusion

THE Auxílio Brasil loan was regulated and you've seen the main rules in this text. To see all the rules, read MC Ordinance No. 816 of September 26, 2021, available in the Official Gazette of the Union. 

Banks are not obligated to offer this loan. With the new rules, it's not yet known which ones will offer it.

However, the expectation is that Caixa will offer and also have the lowest interest rate on the market.

From now on, banks can offer loans, as long as they follow the rules. Since the publication is recent, it may take a few days for them to comply.

However, in the next few days this credit will be available for request.

Be sure to continue following the news from our blog, as we will return to inform you which banks will provide the loan and also the interest rate charged by each of them.