Senate approves use of the balance of the Guarantee Fund for payroll loans

Private sector workers may hire payroll loans using up 10% FGTS balance.
14/07/2016 07h23 - Updated 14/07/2016 07h37
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The full Senate approved on Wednesday (13), Provisional Measure 719, which allows private-sector workers to hire payroll loans using up 10% the balance of the Guarantee Fund for Employees (FGTS) as collateral.

Pay to lose validity, the MP was approved at night this Tuesday (12) the House. Or text, now goes to presidential approval, also allows the loan agreement giving as collateral to 100% the value of the termination fine, in the case of dismissal without cause.

The rapporteur of the MP in the Senate, Benedito de Lira (PP-AL), We made some changes in the text of the measure, but, as the changes were writing only, the proposal does not need to return to House.


The average interest rates of payroll loans are among 25% e 30% a year in the public sector and for retirees. In the private sector, However, because of the high turnover, rates are in the surrounding 41%.

With the new type of guarantee, the goal is to reduce interest charges, as explained Senator Lindbergh Farias (PT-RJ). Lindbergh recalled that the interim measure was published in the government of President Dilma Roussef away.

The MP provides that the Trustees of the FGTS Board set the maximum number of installments and the monthly minimum rate of interest being charged by institutions in payroll loans. The CEF shall determine the procedures required to comply with the new rule.

Source: Agency Brazil

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