The Ministry of Citizenship should soon release more details about the release of the new Auxílio Brasil loan. The loan is scheduled for this September, but authorization has not yet been granted as it still needs regulation from the government.

The government has already established some rules for beneficiaries to take out loans. Alongside President Jair Bolsonaro's sanction, the Citizenship department also published a decree in the Diário da União that establishes some rules for granting payroll loans.

However, banks are still waiting for other details about the new loan to be regulated, such as the interest limit to be charged during contracting.

The definition became an impasse after the government did not establish a limit on the interest that banks can charge, and experts warn that without a defined maximum limit, contracting could cause much greater debt for low-income families.

According to Uol, members of the Ministry of Citizenship, Economy and the Civil House should meet this Tuesday (20) and Wednesday (21) to resolve issues involving the interest rate on the Auxílio Brasil loan.

However, after the definition, it will still be necessary for the government to present the rules to banking institutions and publish them in a new ordinance, in addition to starting the credit operation in data systems.

These steps should take around two weeks, which could delay the release of the Auxílio Brasil consignment until the month of October.

Therefore, the chances that the Auxílio Brasil loan will be released in September are low.

Given the increase in the number of families benefiting from Auxílio Brasil, which reached 20.65 million in September, the government needs guarantees that beneficiaries will be able to pay the amounts contracted in the loan.

Even though the discount is direct on the benefit payroll, as is provided for in the payroll credit modality, there is a chance that the family will have the payment blocked or canceled for some reason.

It is important to remember that, once approved in the program, the family must continue to comply with the basic income requirements and conditions so as not to lose the right to Auxílio Brasil. The minimum income for the family to receive the benefit cannot exceed R$ 210 per person per month.

In addition to checking the data of all beneficiaries on a monthly basis before releasing a new installment, the Ministry of Citizenship instituted a procedure called Focus of Brazil Aid.

This process works like a fine-toothed comb and focuses on families that have different income information in more than one registry. Thus, if the income reported in the Single Registry differs from the values recorded in other government databases, the family will be asked to update the data.

Families with income above the emancipation limit (R$ 525) and up to half the minimum wage per person (R$ 606) were asked to target Brazil Aid.

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