Starting on Friday, March 21, 2025, private sector workers in Brazil will have access to a new payroll loan model known as the "Crédito do Trabalhador". This initiative aims to provide more affordable credit options for employees who operate under the Consolidation of Labor Laws (CLT) framework and microentrepreneurs (MEIs). The Brazilian government has projected that approximately 47 million workers will be eligible for this new loan model, effectively targeting a large part of the workforce.
The Brazilian Ministry of Finance, lead by Fernando Haddad, emphasized that the launch of this new credit system is a significant step in facilitating access to low-interest loans without the need for traditional agreements between financial institutions and employers. "Starting this Friday, workers will utilize their Digital Work Card (CTPS) to access loans tailored specifically for them," Haddad stated during a recent speech.
With this new payroll loan, the repayment will be deducted directly from the worker's salary through the eSocial system. This system integrates various employment-related data and makes it easier for banks to assess borrowers’ risks, theoretically resulting in lower interest rates. Currently, interest rates for private sector loans can reach up to 103% annually. However, with the implementation of the "Crédito do Trabalhador," the government estimates that this rate could drop significantly, to about 40% annually.
Eligible workers include all employees with a formal contract, which encompasses domestic workers and rural laborers, in addition to MEIs. The process of accessing this loan involves a digital application through the CTPS app, where workers permit financial institutions to access essential information, including their name, CPF number, company tenure, and salary margin available for consignment.
According to the ministry's estimates, over 80 financial institutions are prepared to offer this loan. Once workers authorize access to their data, they can expect to receive personalized loan offers within 24 hours. After reviewing their options, they will have to finalize the contract through the bank's electronic channels.
This system also allows workers the flexibility to switch to better loan offers via a portability feature, which will enable them to transfer their payroll loans to different banks starting June 6, 2025. Workers also have the option to migrate existing loans to the new model from April 25, reinforcing the initiative's flexibility.
For those already enrolled in a payroll loan scheme, migrating to the new model is expected to be straightforward within the same banking institution. The government anticipates that this transition will benefit up to 19 million workers in the next four years, resulting in an injection of around R$120 billion into the credit market.
One of the notable features of this loan is the ability to utilize part of the worker's FGTS (Guarantee Fund for Time of Service) as collateral. Specifically, borrowers can use up to 10% of their FGTS balance and will also be able to draw upon the 40% fine from their severance pay in the event of dismissal. If a borrower is terminated, any remaining debt can still be deducted automatically from future payments should they find new employment.
The move to streamline the borrowing process is particularly significant at a time when the Brazilian economy is grappling with challenges. The new loan system counters some of the financial difficulties faced by workers, especially those who may have found it tough to access credit previously due to strict traditional requirements.
Experts note that the changes are advantageous, providing workers with greater financial opportunities as interest rates decrease and lending conditions become more favorable. The ease of use and digital access also cater to younger and tech-savvy workers eager for quick solutions regarding their financial needs.
As Brazil prepares for the public unveiling of the "Crédito do Trabalhador," both government officials and workers alike are watching closely, anticipating the impact this enhanced access to credit may have on household spending and the overall economy. A balance between economic improvement and worker welfare is hoped for as this new model begins its rollout.
