Sadia is one of the world’s leading producers of chilled and frozen foods. Established in Brazil in 194...
Cyrela Brazil Realty is the largest residential real estate developer in Brazil. Considered one of the m...
Today, Banco do Brasil is the largest financial institution in the Country with 24.4 million clients and ...
CPFL Energia is a holding company in Brazilian electricity sector, operating through its subsidiaries in ...
Copersucar S.A. is the largest Brazilian sugar, ethanol and bioenergy company and a significant player in...

Measure reduces interest on loans to retirees and pensioners

Consigned

Main intention is to prevent very high indebtedness and reduce the risk of default

The National Pension Board published a resolution on Monday (6), which recommends that the National Social Security Institute (INSS) reduce the maximum ceiling of interest charged on payroll-deductible loans from 2.14% to 2.08% for retirees and pensioners of the INSS.

For paycheck holders who intend to pay credit card debt, the resolution reduces the interest rate from 3.06% to 3% per month. The  allowable margin for the payment of these expenses will increase from 2 to 1.4 times the value of the monthly benefit.

According to the Pension Plan, this will allow the loan to be settled within 72 months. The main intention of this measure is to prevent a very high indebtedness and to reduce the risk of default.

These reductions were approved in September and were expected to be published to take effect. The Pension Plan evaluates that they  were possible thanks to the falls in the basic interest rate (Selic).  

Source: Government of Brazil, with information from Agência Brasil