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Access to payroll loans for people registered with CadÚnico has been made possible by the Federal Government. Find out how it will work!
Through CadÚnico (the Federal Government's Single Registry for Social Benefits), a new line of credit was released for registrants, a surprise for all Brazilians. This decision was intended to provide financial support to families experiencing socioeconomic vulnerability.
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Last year, payroll loans were made available to those who participated in Bolsa Família, which was subsequently canceled due to the high financial risk for beneficiaries.
However, the government's new plan focuses on benefiting people aged 65 and over and people with disabilities, promising better contractual conditions and lower interest rates.
Below, learn more about the new credit option and find out who is eligible and how to apply.
New payroll loan for people registered with CadÚnico released by the Government
The new credit made available to CadÚnico registrants is intended to serve beneficiaries of the Continuous Cash Benefit (BPC). Therefore, it is necessary to receive the BPC and have an updated Cadastro Único registration to apply for the loan.
Payroll-deducted loans are a type of credit originally created for INSS retirees and pensioners, offering lower interest rates compared to other types.
However, the new Provisional Measure (MP) changing the Bolsa Família rules was recently approved by the Senate. In addition to changes to Brazil’s largest income-transfer program, the text also allowed BPC beneficiaries to apply for the loan.
In practice, beneficiaries will apply for the credit through the bank or financial institution, and it will be deducted from their benefit. This means that the loan installments will be deducted directly from the beneficiary’s payroll.
Rules for applying for a payroll-deducted BPC loan
Those who wish to apply for a payroll loan against BPC should be aware of the application rules. According to the new Provisional Measure, beneficiaries may commit up to 35% of their monthly payment, with 30% for installment payments and 5% for expenses with a payroll-deducted credit card.
To apply for the credit, beneficiaries must contact a bank or financial institution and begin the loan application process. They must state that they wish to take out a payroll loan against the Continuous Cash Benefit (BPC).
In this regard, the institution will prepare a simulation presenting the terms, the amount released, the number and amount of the installments, and the interest rates. If the beneficiary agrees, they only need to sign the contract, and the amount will soon be made available in their bank account.
It is important to remember that it is not yet possible to apply for the credit, since the Provisional Measure was approved by the Chamber of Deputies and the Senate but still awaits the sanction of the President of the Republic, which should take place soon.
Precautions when applying for a CadÚnico payroll loan
The purpose of the CadÚnico payroll loan is to provide beneficiaries with a more accessible and reliable means of credit. In this way, it will offer better conditions to prevent people in greater need from seeking informal financial assistance, which has exorbitant interest rates.
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However, CadÚnico beneficiaries should be alert when applying for the payroll loan. This is because it is not an increase in income, but rather a credit application that must be handled responsibly.
Therefore, those enrolled should be aware that, when applying, part of their monthly benefit will be committed, resulting in smaller payments until the end of the contract.
Therefore, it is essential to conduct a financial analysis to determine whether this is the best option at the moment and whether it will be possible to meet the responsibilities associated with the future deductions.
