New Rules for Loans for Retirees and Pensioners in 2023: What You Need to Know

The National Social Security Council approved the reduction of the minimum interest rate charged on payroll loans for retirees and pensioners of the INSS.

Thus, the maximum interest rate will now be charged at 1.7%, down from 2.14%, as it was previously. Credit card operations are also changing, with the payroll loan rate set at 2.62%.

The lawyer specializing in social security law, Gerson de Souza, clarifies the situation regarding loans that have already been contracted and explains how this change works in practice.

"The first point we can highlight is that those contracts signed before this change will continue normally, both in terms of duration and interest rates. But regarding new contracts, banks are retreating," declares the specialist. He further clarifies the reason for this retreat. "Private banks have already stated that this would not bring a favorable profit condition because there are operational costs. And government banks, such as Banco do Brasil and Caixa Econômica, have stated that they will analyze the situation," he explains.

Thus, the new rule has already come into effect, and banks will have to comply with what has been determined. "It is very important to understand that there is a ranking of bank interest rates. You can access the Central Bank and specify the type of product and see all the banks in order from highest to lowest interest rates," advises Gerson. "At this moment, it is up to the retiree or pensioner of the INSS to access the Central Bank and see what interest rates the banks are practicing. If they find banks offering under these new rules, that is where they will have the most advantage," he adds.

Gerson explains that there are some alternatives for those seeking lower interest rates when taking out a payroll loan. Retirees and pensioners can follow some shortcuts. "What was affected was the INSS payroll loan, but nothing has changed regarding the public payroll loan or the loan that is secured by the FGTS balance. Therefore, retirees and pensioners who find themselves in different situations, such as working after retirement, being public employees, or having FGTS balances, will also be able to access this modality on the FGTS balance," says Gerson.

It is also possible to renegotiate existing loans through portability. The specialist recommends that this portability be done without withdrawal. "In this model without withdrawal, you simply continue and can reduce the installment amount. But it is important to be cautious when doing this, as the migration of interest rates can increase the debt," he explains. "Therefore, it is important to review the loan contract and make a comparison," he adds.

It is worth noting that financial planning is essential when taking out loans and negotiating existing debts. Always seek qualified professionals and stay informed about the changes.

*Gerson is available for further clarifications and can answer questions regarding other social security matters.