Last Tuesday, September 27, the government published in the Official Gazette of the Union the decree that regulates the granting of consigned credit to beneficiaries of the Auxílio Brasil program.

The value of the loan cannot exceed 40% of the R$ 400 paid in Auxílio Brasil, which is the amount set in the State budget. Therefore, the beneficiary has the right to commit up to R$ 160 per month of the benefit, in up to 24 installments and with interest of up to 3.5% per month.

With the regulations established, banks and financial institutions have been authorized to offer payroll loans since the 27th. Many banks and financial institutions are already on the confirmed list of operations with payroll loans. With the release, institutions must prepare to start offering the loan.

According to Banco BMG, the institution must offer the consignment modality to program beneficiaries. But there is still no release date for the loan.

Those interested in withdrawing are still waiting for the bank to comment on the established conditions and when the loan can be requested. 

On Banco BMG's official website, the institution informed that there will be no credit analysis for the loan, as with other banks.

The Union will deduct the loan directly from the payroll. Thus, on payment day, the beneficiary only receives the remainder of the benefit. The institution is obliged to communicate the value of the calculated interest rates and the real cost of the loan before the citizen signs the membership agreement. 

Because of the payment guarantee, the payroll loan is the safest form of loan for banks.

The federal government has issued rules that banks must observe. The institute is expressly prohibited from carrying out any type of active marketing, such as direct advertising for the credit offer.

The bank must present an authorization provided by the central bank to implement the payroll loan.

The government is not responsible for contracting the credit by the beneficiary and it is only up to the citizen to pay the installments.

See more: