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President Jair Bolsonaro signed last Friday the 2nd, a provisional measure that allows expanding the margin of payroll loans for retirees and pensioners of the National Institute of Social Security (INSS), increasing to 40% of the benefit amount.
Before, the limit for payroll was up to 35%, 30% of the amount of retirement or pension and 5% with a credit card. The measure increased the margin to 40%, 35% for payroll loans and 5% for credit cards.
However, the measure is temporary. The new limit applies to loans granted in the next three months, until December 31, 2020, the date on which the decree of the state of public calamity due to the coronavirus pandemic will cease to be in force.
In addition to considering the beneficiaries themselves, who will have access to more credit, the increase in the limit also represents gains for the banking sector. Experts estimate that, with the increase in the consignable margin, the concessions can grow 17%.
The payroll deductible credit line corresponds to 11% of the credit available in the country’s financial system, the largest being for individuals. In addition, it is relevant for banks of all sizes and even digital.
The scenario is favorable for the increase in concessions. This is because the Selic rate is currently the lowest in history, at 2% per year. In addition, the payroll deductible line of credit has a low delinquency rate, between 2% and 3%, which makes it a more stable option in this time of crisis.
The banking system wins
According to experts, the banking system in general will benefit from the provisional measure that establishes the increase in concessions, especially small and medium-sized institutions focused on payroll loans.
According to XP Investimentos analyst Marcel Campos, Banrisul should be more prominent, as 45% of the bank’s portfolio comes from this type of loan.
However, traditional banks also have a lot to gain. Banco do Brasil’s payroll deductible credit line corresponds to 13% of its portfolio. In Santander, 12% of the loans are offered in this modality. Bradesco and Itaú Unibanco contribute, respectively, 10% and 7% of their portfolios in payroll loans.
Also according to the analysis of XP Investimentos, the measure should reduce the granting of credit on the payroll credit card. This is because traditional payroll loans have more affordable interest rates, as well as the ability to negotiate with other banks.
Also Read: FGTS Birthday Retirement Can Increase Payroll Deductible Credit By 5X
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