As of Friday, April 25, 2025, the new CLT payroll loan is now available on all bank platforms, marking a significant shift in how Brazilian workers can access credit. This initiative, which has been in effect since March 21, aims to provide lower-cost loans to formal sector employees, including those in rural and domestic work, through authorized financial institutions.
The rollout of this loan type has been gradual, with major banks like Banco do Brasil, Itaú, and Santander only recently joining the program. According to the Brazilian Federation of Banks (Febraban), about 26% of individuals currently using unsecured personal credit could benefit from this new payroll loan, which represents R$ 83.8 billion of the total R$ 322.6 billion in personal credit in Brazil.
Banco do Brasil has announced that its payroll loan comes with interest rates ranging from 1.46% to 3% per month. Similarly, Caixa Econômica Federal has indicated a range of 1.60% to 3.18% per month. However, the average interest rates for these loans are still under review, as the government hopes that this new phase will help lower overall borrowing costs.
Fernando Haddad, the Minister of Finance, expressed optimism about the program, stating, "I think the scale will change, and the quality of what is being granted will also change." This sentiment reflects the government's hope that the new payroll loan will expand the credit available to the private sector from an estimated R$ 40 billion to R$ 120 billion.
Under the new system, workers can apply for loans directly through their bank's app, eliminating the previous requirement to use the Digital Work Card (CTPS Digital). The loan allows for automatic deductions from salaries, with a cap of 35% of gross income—including bonuses and other benefits—dedicated to loan repayments. In addition, borrowers can use up to 10% of their FGTS (Fundo de Garantia do Tempo de Serviço) balance and the full amount of their severance pay as collateral.
As of April 23, 2025, R$ 8 billion had already been disbursed across 1.47 million contracts, with the average loan amount per worker being R$ 5,502.02 and the average monthly installment at R$ 337.14. The states of São Paulo, Rio de Janeiro, Minas Gerais, Rio Grande do Sul, and Paraná have seen the highest levels of borrowing.
Despite the cautious approach of larger banks, smaller institutions like Agibank have been quick to offer competitive rates. A JPMorgan study indicated that Agibank had the most offers available at the program's launch, while larger banks gradually began to participate, with Itaú and Nubank stating they would join in early April.
Experts predict that the current balance of payroll loans could quadruple over the next four years, reaching R$ 120 billion. Milton Rabelo from VG Research noted that banks with lower exposure to the CLT payroll loan could potentially see higher growth rates compared to those like Itaú and Santander, which have more established personal loan portfolios.
Analysts from Nord Investimentos highlighted that while banks might see an increase in their credit portfolios, the lower interest rates associated with the payroll loans could compress their profit margins. Hugo Cabral noted that the CLT payroll loan could reduce the financial spread, which is the difference between interest rates charged and paid, thereby impacting bank profitability.
For Nubank, which has a significant portion of its credit portfolio in personal loans, the new payroll loan could pose challenges. Larissa Quaresma from Empiricus noted, "Nubank is a loser in our estimate. The company will be forced to offer the CLT payroll loan, which we expect will lead to a decline in its return on equity (ROE)." However, analysts from Goldman Sachs have a more optimistic view, suggesting that Nubank's strong balance sheet and technological capabilities could position it well in the long run.
In terms of dividend payouts, Banco do Brasil is expected to be the highest dividend payer in the coming year, with estimates suggesting returns of around 11%. Other banks like Itaú and Santander are projected to pay between 8% and 11%, but their status as state-owned banks may affect investor perceptions.
The introduction of the CLT payroll loan represents a significant shift in the Brazilian credit landscape, providing workers with more accessible and affordable borrowing options. With over 80 financial institutions expected to participate, the competition could lead to better rates and terms for consumers.
As the government anticipates a reduction in interest rates and an increase in credit availability, the potential for growth in this sector seems promising. The upcoming implementation of portability between banks, set to begin on June 6, 2025, will further enhance consumer options, allowing borrowers to switch lenders more easily.
In conclusion, the launch of the CLT payroll loan is poised to reshape the borrowing landscape in Brazil, offering workers new opportunities for financial support while challenging traditional banking practices.
