Banks are reviewing their payroll-deductible credit operations for retirees and pensioners from the National Social Security Institute (INSS). The main reason is to maintain the maximum interest rate at 1.66% per month, while the Selic rate is on the rise, increasing the cost of other types of credit.
The pressure on profitability led large financial institutions, such as Itaú, Bradesco and Santander, to reconsider their operations in this segment, highlights the National Association of Credit Companies (Anec)
Even public banks, such as Banco do Brasil (BB), are aware of the situation. The president of BB, Tarciana Medeiros, stated during the presentation of the third quarter results that, if the current level of interest rates compromises profitability, it will be necessary to dialogue with the Ministry of Social Security to adjust the ceiling.
The situation could result in a reduction in the supply of payroll-deductible credit — a more accessible modality with lower interest rates — forcing INSS beneficiaries, generally more vulnerable, to resort to more expensive options, such as personal loans and special checks.
Data from the Central Bank (BC) show that the total balance of operations in September was R$268.4 billion. 13.3% more than in the same month of 2023.
What is payroll credit?
Payroll credit for retirees is a loan with installments deducted directly from the INSS benefit. The monthly income can be committed by up to 45%, with 35% for personal loans, 5% for the credit card and another 5% for the benefit card. Payments can be made over up to 84 months (seven years).
According to Anec, maintaining the current rate is compromising the sustainability of this credit, essential for millions of retirees and pensioners in Brazil. The association defends the need for dialogue with the government and monetary authorities to review the ceiling for this modality.
“This change is crucial to guarantee the continuity of credit granted to retirees, ensuring both the viability of banks and access to fair and adequate credit for beneficiaries”, stated Lourival Rocha, CEO of Anec.
Government has not yet defined its position
The last interest rate change was determined in May by the National Social Security Council (CNPS), when the Selic was on a downward trajectory. However, the latest basic interest rate hikes have brought the issue to the fore again.
During the CNPS meeting in September, Rafael Baldi da Silva, from the National Confederation of Financial Institutions (CNF), asked when the topic would be reviewed. Adroaldo da Cunha Portal, secretary of the General Social Security Regime, stated that he would consult minister Carlos Lupi on the matter.
The topic should be discussed at the next council meeting, scheduled for the 28th. In statements made in October, minister Carlos Lupi signaled the possibility of addressing the topic this month.
