The release of the long-awaited loan to Auxílio Brasil beneficiaries will begin in October. On Tuesday (26) the federal government published the ordinance in the Official Gazette of the Union that regulates the release of resources to program beneficiaries.

The main rule concerns the limit of the allowed amount: No more than 40% of the benefit value can be committed to the loan. Considering the value of R$ 400 and not the value of R$ 600, which is temporary and is scheduled until December 2022, the maximum value of the installment will be R$ 160.00

Many banks and financial institutions are already on the confirmed list to offer the payroll loan modality.

The regulation published the rules established so that financial institutions can offer credit and the interest rate, which will be a maximum of 3.5% per month.

The discount is made directly to the payroll by the Union. The maximum amount per installment is R$ 160, with a payment period of up to 24 months and interest of up to 3.5% per month.

The institution is obliged to inform the beneficiary of the interest rates and the real cost of the loan.

Payroll loans are the safest option for banks, as the amounts are deducted directly from the payroll and the risk of default is significantly lower compared to conventional credit.

Among the rules established by the government to allow financial institutions to offer payroll loans to Auxílio Brasil beneficiaries, any type of active marketing, such as direct advertising, is not permitted.

Furthermore, the bank must have authorization from the Central Bank to work with the loan. Another established rule states that the government is exempt from any responsibility for contracting the Auxílio Brasil loan, with only the beneficiary being responsible for paying the debt.

Banco Pan is one of the banks on the list of financial institutions confirmed to offer Auxílio Brasil payroll.

However, pre-registrations were already being carried out, however, since the rules were published on Tuesday, 27th, Banco Pan, as well as other institutions, must start their proposals from that moment on. 

In a note, Banco Pan said: “It is a relevant company in the payroll loan market and was awaiting government regulation. From now on, the line of administration and operation applicable to the release of resources will be defined.”

As for the date, it has not yet been specified when the bank will offer the loan. Most likely, the concession will take place in October.

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