Brazil Raises INSS Payroll Loan Interest Ceiling from 1.66% to 1.80% per Month

Jan 9, 2025, 08:02 PM

On Thursday, the Brazilian government approved an increase in the interest rate ceiling for payroll loans offered to retirees and pensioners of the INSS (National Social Security Institute), raising it from 1.66% to 1.80% per month. This is the first time under President Lula's administration that the ceiling has been increased. The decision was made by the National Social Security Council (CNPS) after discussions involving the government and banks. Banks had advocated for a higher increase to 1.99% per month to restore profitability but were not granted this higher rate, leading to some frustration among financial institutions. The new ceiling means that retirees and pensioners will face higher interest rates on their payroll loans.