Increase the credit offer for 60+ pensioners: find out how

With an eye on the 60+ segment, financial institutions are launching new alternatives for payroll loans

The report published by the National Family Observatory in 2021 reveals that about 70% of the elderly living in Brazil have a monthly personal income of up to 2 minimum wages. Having to deal more often with health care, medicines and special care, this age group is also the one most affected by inflation and the one most exposed to poverty, bearing in mind that around 25% of the population living in the homeless in Brazil are over 60 years old.

The survey also reveals that more and more elderly people have become the reference person in the family, i.e. responsible for housing expenses, such as rent and condominium expenses.

As highlighted by the Observatory, the percentage of people over 60 referenced in their family cycles grew by more than 50% between 2001 and 2015, which means that this segment is progressively looking for letters of credit that make it possible to match the ‘health care with the guarantee of a roof over their heads for their loved ones, as well as other expenses for food, transport, water, electricity, etc.

Credit cards for retirees

In response to this demand, several banks have offered letters of credit specialized in this segment, taking payroll loans as a guarantee from institutions such as the National Social Security Institute – INSS. When taking out the INSS paycheck loan, retirees and retirees are faced with at least 35 options on the market that offer loans whose installments are deducted directly from the monthly paycheck.

This type of card has an interest rate at least 6.7% higher than the Selic, which is currently 13.75% per year, and remains at at least 2% per month.

In addition to the INSS salary loan, many have resorted to other options whose fee is fixed, such as the public salary loan – whose interest can reach 60% more than the Base Rate – and the private salary loan – which also exceeds it the Rate of pay: more than 60% per year.

In the midst of this research personal loans were also frequently taken out. In this area, however, interest can reach 1,166.20% per annum, an amount that exceeds the Base Rate by approximately 900% per annum.

Credit alternatives with lower interest rates

Contradictorily, those who make up the 60+ segment are among the largest creditors of the Brazilian state, due to the fact that retirees are a large part of the holders of public debt securities, the so-called precatorios.

The so-called precatorios are titles that correspond to more than 60 minimum wages acquired through the winning of compensation cases, brought by private individuals against bodies of different spheres of government power, and which can take more than 36 months to reach the hands of the applicants .

Aware of this scenario, Matri Bank, the first precarious bank in Brazil, has created a payroll loan solution based on these government bonds that take time to pay off, in order to offer an alternative so that thousands of retirees can “get out of the grip ”, as highlighted by the managing director of the institution, Gustavo Messias.

Entitled MatriCred, the solution allows precaution holders in the Union, the state of São Paulo and the municipalities of São Paulo to use their securities as collateral for immediate trading of securities, with the lowest interest rates in the market (1 .4% per month for the final customer), the absence of monthly installments and the exemption for applicants to undergo a credit analysis or income test to receive the amounts – even for negative ones.

In addition to credit, Matri Bank also provides its customers with MatriNow, an advance service that allows creditors to receive up to 72% of the total value of the precarious debt in less than 3 days from signing the contract.

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Source: Terra

Rose

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.