Beneficiaries of Auxílio-Brasil and Benefício Assistencial (BPC/LOAS) can take out loans with franking from September 2022. Law 14,431 expanded the list of beneficiaries and the margin for loans with franking.

Salary credit is granted with automatic deduction from salary installments. Thus, the law also expands the list of beneficiaries and authorizes the modality for those who receive the continued cash benefit (BPC). Also valid for Lifetime Monthly Income (RMV) and Auxílio Brasil. The credit margin is defined as follows:

For BPC/LOAS, the deductible margin is 45 (40 for credit and 5 for deductible credit cards); 

RMV beneficiaries now have a margin of 45 (40 for loans and 5 for deductible credit cards); 

On the other hand, Auxílio-Brasil beneficiaries have a margin of 40% for loans.

The law also establishes that it is possible to make as many loans as the beneficiary wants. However, the allocable margin must be maintained. In addition, financial institutions must indicate what the remaining remuneration will be after the closing of the assigned credit, the cost and repayment period.

Currently, the Citizenship Secretariat is working on complementary rules for the start of hiring. According to Agência Brasil, there are already around 17 financial institutions authorized by the ministry to grant payroll loans.

See too: