Payroll Loan in 2023 New Rules Opportunities and Precautions. Payroll Loans are a widely known and appreciated type of credit, especially among retirees, pensioners, civil servants and employees with formal employment contracts. This type of loan has unique characteristics that make it an attractive option for many, such as lower interest rates and ease of repayment through direct discounts at source, whether from social security benefits or salary.

In 2023, new rules emerged that impact this type of loan, bringing opportunities and challenges for those who wish to use it as a means of obtaining credit. In this article, we will explore these changes, highlight who can apply for a Payroll Loan, detail the assignable margin and discuss the new rules on interest and terms.

What is a Payroll Loan?

The Payroll Loan is a form of credit in which the installments are discounted directly from the INSS benefit, paycheck or salary slip, making it a safe option for financial institutions, as they are guaranteed to receive the amount loaned. It is widely used by retirees and pensioners, due to the stability of the payment sources.

Who Can Apply for a Payroll Loan?

The Payroll Loan can be requested by:

1. Retired.
2. Pensioners.
3. Public servants and employees.
4. Workers with signed employment contracts.
5. Beneficiaries of BPC (Continuous Benefit Payment) and Bolsa Família.
6. Legal representatives of BPC and Bolsa Família beneficiaries.

Due to the payment guarantee, retirees and pensioners are the main beneficiaries of this type of loan.

Consignable Margin

The assignable margin is the maximum limit that a social security benefit or salary can be committed to assigned loans. In 2022, Law No. 14,431/2022 increased the assignable margin from 40% to 45%, distributed as follows:

• 35% for loans.
• 5% for payroll credit card.
• 5% for the new INSS benefits card.

These changes benefited more than 52 million Brazilians, including retirees, pensioners, and beneficiaries of Auxílio Brasil and BPC. However, it is crucial to remember that the assignable margin must consider all loans discounted from the benefit.

New Rules for Payroll Loans in 2023

1. New Consignable Margin: Currently, the assignable margin for loans is 35% of income, returning to the limit prior to the 2022 temporary law. In addition, there is an additional margin of 40% for Auxílio Brasil beneficiaries who wish to pay off debts with financing and loans.
2. New Number of Installments: During the pandemic, the number of installments for loan repayment was 84 (7 years). In 2023, one of the changes is that it is now possible to pay in up to 72 installments (6 years). However, INSS pensioners and retirees can still pay in up to 84 installments, while federal public servants (SIAPE) have a term of 96 months.
3. New Rule for Interest Rate Cap: Interest rates have risen, returning to pre-pandemic levels, reaching 2.14% per month for loans secured by social security benefits and 3.06% per month for credit cards secured by social security benefits. Although these rates are the maximum limits, financial institutions generally offer lower rates to attract customers.

INSS Proof of Life

Proof of life is a requirement of the INSS to ensure that beneficiaries are alive and therefore eligible to receive their benefits. In 2022, the INSS implemented significant changes, allowing proof of life to be done remotely, based on information such as voting, SUS services and document renewals.

Blocking and Unblocking for Payroll Loans

Starting in 2023, new rules have been implemented to block and unblock the option of obtaining payroll loans. To ensure greater security against fraud, it is now necessary to send an official document with a photo. This process can be done through the website or app MY INSS, as well as via the 135 call center.

Payroll Loans in 2023 bring important changes, including a reduction in the margin that can be assigned, a change in the number of installments, and a return to pre-pandemic interest rate levels. It is an attractive credit option for many, especially retirees and pensioners, due to the lower rates and payment guarantee. However, it is essential to make a solid financial plan and carefully consider the impact of the loan on your income before making any decision. Taking advantage of the new rules responsibly is essential to maintain your financial stability.

Read too: How does loan repayment work?