Bolsa Família Loan: Understand How It Works

Have you heard of the Bolsa Família loan?

What is the Bolsa Família loan?

As mentioned in the introduction, the Bolsa Família loan is a line of credit made available by the Brazilian government to all beneficiaries of the benefit. family allowance.

It is considered a microcredit and is part of a program called Progredir, in which people who live off the Bolsa Família program can develop small businesses, or even improve their lives in some way.

So, it's an incentive for Bolsa Família recipients to open their own little shop, sell snacks, or get involved in some kind of entrepreneurial activity like these.

Some people prefer to invest the Bolsa Família loan amount in better education for their children, a specialization course to get a well-paying job, or improve their housing conditions.

In other words, it's a way to insert these people into the economy, enabling a life with greater opportunities – which we know isn't easy when income is low.

However, this is a banking product specifically for this audience and there are some prerequisites for its contracting.

How to apply for the Bolsa Família loan?

The Bolsa Família loan is exclusive to people who meet these requirements:

Families with a monthly income of less than R$170.00
All children and young people in the family up to the age of 17 must be enrolled in school
It is necessary to participate in the actions of the Ministry of Social Development and Fight Against Hunger (MDS) for women's health.

Additionally, the program assesses these other requirements:

Have your own income in addition to the benefit, with a signed employment contract and proof of income
Have a guarantor
Agree to have an inspector visit your home, who will check whether the conditions are as expected.

So, how do I apply for the Bolsa Família loan?

Knowing all this, comes the most important part: applying for the Bolsa Família loan.

You need to confirm your eligibility for the program by visiting a Caixa Econômica Federal branch and making an inquiry. If you receive a positive response, you must follow these steps:

Schedule a visit from a Caixa agent and be with your guarantor
The analysis time takes on average 8 days after the Caixa agent's visit
After receiving approval notice, you must wait for the requested amount to be released. Once this happens, you'll receive it from Caixa Econômica Federal.

There you go, you've received your Bolsa Família loan!

Now you have another concern: the interest rates on this loan. It's worth remembering that, despite being a government initiative to support needy families, it's a type of financial product, meaning it's subject to interest charges.

These uros fees are charged according to the following criteria:

The amount you borrowed from the program
The number of installments you chose
Your income status at the time of application

Understanding this, we can now move on to a very important point: the amounts that can be made available through the Bolsa Família loan.

What are the amounts available for the Bolsa Família loan?

According to the Serasa Teaches, until 2018 the credit limit for the Bolsa Família loan was R$15,000, always varying according to each person's situation.

The average requested by Bolsa Família recipients is R$ 4 thousand reais, considering all the points that have already been discussed above.

Is it worth taking out a Bolsa Família loan?

Before making this decision, you need to ask yourself some crucial questions:

Does my income allow me to pay the monthly loan payment today?

Try not to take on more than you can handle. A loan can be an exceptional solution, but if not repaid correctly, you could end up in debt.

Remember that the loan installment amount cannot compromise your basic monthly expenses, such as water bills, electricity bills, monthly groceries, etc.

I am unemployed and want to apply for a loan

If you are unemployed, a loan may not be the best option – and your application may not even be approved, as it does not meet the requirements mentioned above.

There are now loan options for the unemployed, as well as other lines of credit available. If you are an MEI and need resources to continue operating as a freelancer, there is also interest loan for MEI.

Research your options and you'll find the one that best fits your profile and won't harm your current situation.

Conclusion

When it comes to financial matters, you can never be too careful! When discussing issues of this nature, involving banks and financial institutions, with recurring interest charges and the possibility of a negative CPF, it's important that you understand all the risks you face.

The importance of financial education, planning, and caution cannot be overlooked here, regardless of whether the salary is high or low.