End of Auxilio Brasil charging? understand what is happening

The Auxílio Brasil Payroll Loan was created this year to give credit to beneficiaries of the social program. Although the method is not unprecedented in the country, it is the first time it has been offered to those enrolled in the Income Transfer Program. Until then, the service was only for civil servants, retirees, and retirees from the INSS (National Institute for Social Security).

The service was approved by the President of the Republic, Jair Bolsonaro (PL) in August this year. However, he was only released in October, on the eve of the elections. The delay was due to the organization of Auxílio Brasil’s payroll, according to the Ministry of Citizenship. The volume ran into a quandary with the banks over interest rates.

After the election, many Brazilians are struggling to get the loan. So, the question arises: is this the end of Auxílio Brasil’s payroll? Continue reading this article to find out the answer.

Can the Brazilian aid shipment be extinguished?

First of all, it is important to talk about the rules of Auxílio Brasil Payroll Loan. As mentioned earlier, there was a quandary between Finance Intuition and the Ministry of Citizenship. The authority defended a lower interest rate than the banks suggested. In the end, it was determined that payrolls can charge up to 3.5% per month, more than double the amount charged on payrolls for public servants, who average 1.72%.

In addition, paying off the Auxílio Brasil Payroll Loan can hurt up to 40% of a family’s benefit. This means that when the service is contracted, R$240.00 out of R$600.00 is already committed. Leaving a family with a monthly income not exceeding R$360 per month.

Due to the rules, Auxílio Brasil’s charge has always been controversial. After all, there has been a debate about the ethics of charging high interest rates to the low-income population. Three of the largest banks in the country, for example, do not offer method recruitment. Finally, the Federal Court of Auditors (TCU) warned of the danger of the proposal being electoral, designed to help get Bolsonaro re-elected.

After its defeat at the polls, Caixa changed the rules for granting a loan. Although there was no official clearance, a report from the UOL portal found that state-owned employees had orders to restrict Auxílio Brasil’s payroll. In addition, reports of Brazilians unable to hire the service have increased.

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TCU and MP Caixa investigate

In light of this, in theory, the shipment of Auxílio Brasil is still there. But the future of the sport is uncertain. In addition to the TCU, the Public Prosecution Service (MP) is also targeting the state-owned company. The bodies are checking whether the state could be used improperly, in favor of Bolsonaro, in the elections. Some private banks continue to provide the service.

So far, the new government department has not yet commented on the case. What is known, however, is that Caixa employees submitted a document to the transition team asking Lula to cancel Auxílio Brasil’s payroll, at the risk of being over-indebted to the low-income population.

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