The CNPS (National Social Security Council) decided this Monday (May 27, 2024) to reduce from 1.68% to 1.66% the ceiling on fees to be charged on the INSS (National Social Security Institute) payroll. . The rate for taking out credit via credit card fell from 2.49% to 2.46% per month.
The 1.68% cap has been in effect since April 2024, when the board approved the cap. This Monday's decision (May 27) comes 19 days after the Copom (Monetary Policy Committee) of the BC (Central Bank) decided to cut the basic rate, the Selic, by 0.25 percentage points.
Government reduces interest ceiling for INSS payroll loans to 1.66%
The federal government announced an important change in interest rates for INSS loans. The new measure establishes that the interest ceiling will be 1.66%. This decision, recently published by the National Social Security Council (CNPS), aims to provide financial relief to INSS beneficiaries, ensuring that banks and financial institutions cannot charge rates higher than this new limit.
Why is reducing interest rates important?
The reduction in interest rates is a response to growing concerns about the indebtedness of the elderly population, who often depend on payroll loans to supplement their income. Consigned loans are deducted directly from INSS benefits, which generally offers lower risks of default for banks. However, high interest rates can quickly turn these loans into financial burdens for recipients.
Important points:
- Impact on debt: Reducing interest rates can help reduce the debt of INSS retirees and pensioners.
- Greater accessibility: Lower interest rates make loans more accessible and less costly for those who need them.
When do the new rates come into effect?
The new maximum interest rates come into force five business days after the publication of the CNPS resolution. From this period onwards, banks and financial institutions will be prohibited from offering loans and payroll cards with rates higher than the new ceiling of 1.66%.
How does the change affect INSS beneficiaries?
This change has a direct and positive impact on INSS beneficiaries. By limiting interest rates, retirees and pensioners will have better credit conditions, being able to take on financial commitments without compromising a large part of their income.
Important points:
- Financial security: With lower interest rates, beneficiaries have more financial security and a lower risk of over-indebtedness.
- Financial planning: Lower interest rates allow for better financial planning, enabling beneficiaries to use their money more effectively.
Challenges for banks and financial institutions
Although the reduction in interest rates is beneficial for INSS beneficiaries, it also presents challenges for banks and financial institutions, which will have to adjust their credit strategies to adapt to the new ceiling. This may include reviewing products and services offered, as well as seeking operational efficiencies to maintain profitability.
Important points:
- Market adaptation: Financial institutions will have to adapt quickly to the new rules to continue offering competitive products.
- Innovation: The need for innovation and efficiency in financial services may increase, leading to better practices and more accessible products.
Expectations for the future
Reducing interest rates is just one of the measures that can be taken to improve the financial situation of INSS beneficiaries. The government is expected to continue monitoring and adjusting credit policies to ensure that these vulnerable populations have access to fair and sustainable financial conditions.
Important points:
- Continuous monitoring: The effectiveness of the measure will be monitored, and adjustments can be made as necessary.
- Complementary policies: Other financial support policies can be implemented to expand benefits to retirees and pensioners.
Concluding
The reduction of the interest ceiling for INSS loans to 1.66% represents a significant step in the financial protection of retirees and pensioners. With this measure, the government seeks to ensure that these citizens can access credit in a fairer and more sustainable way, promoting greater security and financial planning.
We want to know your opinion! Leave your comments on how this measure could impact the lives of INSS beneficiaries and the financial market.
