The Auxílio Brasil/Bolsa Família payroll loan was recently created by the government of Jair Bolsonaro (PL) and began operating in October 2022. Although the measure gave millions of low-income families the opportunity to obtain credit in the market, the product was also the target of several criticisms by experts. As a result, there is speculation that under the command of Luís Inácio Lula da Silva (PT) the loan modality will be definitively suspended.

According to a report from the transition team, it is necessary to immediately suspend the provision of the Auxílio Brasil loan, or else a significant reduction in interest. The measure is expected to take place in the first hundred days of government, considered the most important period of the president's term.

The Auxílio Brasil allocation was created through Provisional Measure 1106/22 by President Jair Bolsonaro (PL), and approved by the National Congress in July. However, the release of the values only happened after the 1st round of the elections.

According to the Public Ministry at the Federal Court of Auditors, the offer of payroll loans had electoral purposes, requesting that the credit be suspended. However, the Court of Auditors authorized the measure to continue.

According to experts, offering this type of loan to low-income families would further increase the chance of indebtedness, in addition to reducing the amount used for extra income by families in situations of social vulnerability.

The Ministry of Citizenship established a ceiling of 3.5% per month on the interest charged when granting credit. However, traditional loan rates for INSS pensioners and retirees are usually 1.97% per month.

Contracting Auxílio Brasil consigned credit is based on the value of R$ 400, and it is possible to make installments of up to R$ 160 (40% on the benefit), limiting up to 24 months.

If the Auxílio Brasil/Bolsa Família loan is suspended, families must continue paying for the credit. Thus, the risk of debt becomes even greater.

According to the future Minister of Finance, Fernando Haddad, the product generates dissatisfaction, even though he recognizes that Caixa Econômica will be affected, without informing how the installments will be paid.

“In fact, the absurd thing that happened is that you hired the Auxílio Brasil consignee and fleeced the poor population. No private institution did it (the Auxílio Brasil consigned credit) and Caixa was forced to do it. But here's the thing: if there is no Brazil Aid, who will she receive from?”, asked Haddad.

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