Governo fixa novo teto da taxa de juros do consignado para segurados do INSS.

The Brazilian government has finally decided on the ceiling interest rate of consigned loans for INSS (National Institute of Social Security) beneficiaries in March. The issue was controversial as the ceiling rate had been reduced, and banks had suspended lending. The National Social Security Council (CNPS) established a new interest rate ceiling of 1.97% per month, below the initial percentage of 2.14%.

Not all financial institutions are practicing this rate, and many banks have adopted rates below the limit, which will benefit those seeking consigned loans. According to the Minister of Social Security, Carlos Lupi, the limit is only established as a reference, and the institution has autonomy to set its interest rate, as long as it is below or equal to the ceiling.

“I will soon show the rates to you, and I guarantee that they are falling well below what has been limited as a ceiling. I believe that just by discussing this issue has shed light. When you light up a path, you see it better,” Lupi said. He also claimed that “all the rates Practiced are falling below 1.97%,” but he did not mention any names.

The consigned loan has already been one of the cheapest loan types in Brazil, considering that the risk of default is very low. Interest rates have been reduced, consequently the loan has become even more attractive to customers.

Background of the Decision

The controversy surrounding the consignment loan interest rate started in mid-March, when Lupi announced that the maximum interest rate would be lowered from 2.14% to 1.70% per month. However, claiming that the rate was not sufficient to cover the operation’s costs, Caixa Econômica Federal, Banco do Brasil, Itaú, Bradesco, and other banks suspended their lines of credit. The banks made this decision without the president’s approval, Luiz Inácio Lula da Silva (PT), causing dissatisfaction within the government.

To address the problem, new meetings were held, and the ceiling rate was set at 1.97% per month. After the announcement, public and private banks communicated that they would resume offering consigned loans. It is essential to remember that, in this loan modality, the monthly installments are deducted directly from the beneficiary’s payroll.

The reduction of the consignment loan interest rate is a considerable relief for many INSS beneficiaries who rely on these loans to manage their finances. Furthermore, considering the challenging times that the Brazilian economy is facing, lower interest rates will benefit consumers and may stimulate the economy in general.

In summary, the resolution of the controversy surrounding the maximum interest rate of consigned loans for INSS beneficiaries is a victory for public policy. The Brazilian government’s measures to regulate the market and minimize the impact of interest rates on consumers and taxpayers have paved the way for a more transparent and stable lending environment.