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Nubank recently revealed that it will allow its customers the option to advance their FGTS. See what’s new!
Every year, in the employee’s birth month, they have the possibility of withdrawing a stipulated amount from the Service Time Guarantee Fund (FGTS). To take advantage of this, they must opt for the birthday withdrawal, one of the legally established fund withdrawal options.
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However, the benefit is only available for withdrawal once a year, which may not meet the needs of those who urgently require funds.
Thus, several financial institutions offer FGTS advances, acting as a secured loan. In this context, Nubank recently announced that its users can now access this type of financing. Explore this innovation!
FGTS Advance through Nubank
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At Nu Holdings’ recent conference call, which focused on the second quarter of 2023 earnings, David Vélez, Nubank’s CEO, announced that it had started the experimental phase of FGTS-Backed Loans a few weeks earlier. Vélez expressed his confidence that, with this initiative, the fintech can engage and retain its customer base even more.
Furthermore, the leader emphasized that secured loans have an advantage over others, as the default rate is remarkably low. In addition, the loan type backed by FGTS will expand Nubank's range of credit products, standing out for its reduced-risk offerings.
Terms of the loan secured by FGTS
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Finally, the loan installments will be paid annually on the first business day of the employee's birth month, deducted directly from the FGTS account. Thus, Caixa Econômica Federal, the manager of FGTS, will be responsible for transferring the amount to Nubank.
If the customer wishes to settle the loan early, using their own funds, either in full or in part, the interest and other charges will be reduced proportionally. It is important to note that the customer has up to 7 business days to reject the Agreement, provided that they return the amounts disbursed by Nubank.
