The Brazilian political scenario is full of uncertainty and the October elections raised doubts in the banking sector, which fears the death of Auxílio Brasil. In this context, possible losses related to the benefit loan are expected.

In this way, the variety of proposals from candidates for the presidency of the republic creates uncertainty among banks when granting assigned credit. Because there is a risk that, if regulations change, families will no longer participate in the program, thus failing to pay loan installments and causing losses to banks.

Despite the uncertainties and a scenario full of policy proposals, the Minister of Citizenship, Ronaldo Bento, said that payroll loans should begin this September, but there is still no set date. Thus, the law that allows this loan with discount at source was sanctioned in August.

Accordingly, the Ministry of Citizenship will also issue complementary regulations to allow banks to begin granting loans. These rules will be published in September so that the loan can be released to Auxílio Brasil beneficiaries. Therefore, the government expects the Auxílio Brasil payroll loan to begin soon.

These uncertainties about the continuity of Auxílio Brasil caused some banks to stop offering Auxílio Brasil payroll. An example of this is Itaú, which recently announced that it had suspended the loan due to “temporary nature of the benefit and changes that occur from month to month“.

In addition to Itaú, the president of Bradesco, Octavio de Lazari Júnior, stated that: “These people will have greater difficulties when the benefit ends and that is why we prefer not to operate“. Lending is therefore a risky business for the bank.

The banks that will offer Auxílio Brasil payroll loans are:

According to the Central Bank, the average interest rate charged by banks is: 

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