The interest reduction is seen as a relief for retirees and pensioners, who often resort to these loans to supplement their monthly income. The Minister of Social Security, Carlos Lupi, highlighted the importance of this reduction as a tool to minimize the debt of this vulnerable population.
Understand the New Interest Ceiling for INSS Beneficiaries
In a recent decision, the National Social Security Council (CNPS) proposed significant changes to the interest limits for payroll loans taken out by beneficiaries of the National Social Security Institute (INSS). The new measure establishes that the interest ceiling on these loans will be reduced from 1.72% to 1.68% monthly.
How Did Financial Institutions React to the Decision?
Banks expressed dissatisfaction with the new regulations, arguing that the reduced rates would not cover funding costs. However, his position was a minority in the CNPS, dominated by government members who defend the reduction as an important social benefit.
Changes Also to the Payroll Credit Card
In addition to direct loans, interest rates for operations carried out through payroll credit cards have also undergone adjustments. The ceiling for these operations was revised from 2.55% to 2.49% per month. The new rates will come into force next week, benefiting new contracts from that date onwards.
CNPS Voting Details
In the voting session that resulted in the approval of the new rates, the council saw a predominance of votes in favor of the reduction. With 10 votes in favor and only one against – represented by the banking sector – the decision reflects a clear preference for the economic protection of retirees and pensioners against excessive debt.
Conclusion: The CNPS initiative to reduce interest on payroll loans demonstrates a continuous effort to offer better financial conditions for INSS beneficiaries, in line with the progressive reductions in the Selic rate, which is currently at 10.75% per year. With these changes, retirees and pensioners are expected to have one less thing to worry about in their monthly budget.
