The measure could affect payroll taxes for public employees and INSS beneficiaries, vehicle financing and credit cards
Shortly after the announcement of a new cut of 0.50 percentage points in the base interest rate by the Central Bank, the Banco do Brasil and the Caixa Econômica Federal announced the reduction of interest on credit lines for individuals and legal. On Wednesday 20th, the Monetary Policy Committee (Copom) decided to increase the Selic rate to 12.75% per annum.
At Banco do Brasil, reductions can reach 0.04 percentage points per month. In the individual segment, the bank will reduce payroll taxes for public employees and INSS beneficiaries; vehicle financing; automatic; wage; benefit; renovation; 13th salary; and credit card.
According to BB, in INSS payrolls, the minimum rate will drop from 1.75% monthly to 1.71% monthly. The cap of the line will go from 1.89% per month to 1.85% per month. In public payroll loans and structured credit, which have guarantees, rates start from 1.19% per month and 1.21% per month respectively.
In the case of credit to legal entities and micro and small businesses, the bank will offer lower interest rates on securities discount lines, working capital, secured accounts and other products. According to BB, the reductions vary depending on the degree of relationship with customers.
The new rates for natural persons will be available from Thursday 21st. In the case of lines for legal persons, the reductions will come into force from Friday 22nd.
In early August, when Copom began the interest reduction cycle with another 0.5 percentage point reduction in the Selic, the bank subsequently also announced a series of interest reductions.
“And this movement already allows us to establish better conditions in the granting of credit, always observing good banking practices, supported by a favorable macroeconomic scenario, added to our permanent monitoring of loan product rates, with the aim of always establishing the more favorable conditions for our customers”, the president of BB, Tarciana Medeiros, said on a social network at the time.
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At Caixa, on lines for individuals, the average interest on payroll lines of credit will drop from 1.61% per month to 1.55% per month. This data includes all payroll lines that Caixa offers, such as those intended for INSS beneficiaries or private payroll loans.
For micro and small businesses, the bank has reduced monthly working capital rates by 0.22 percentage points, which now start at 0.99%. Furthermore, according to Caixa, the payment term is now up to 60 months, with a grace period of six months, depending on the modality.
The institute will also reduce interest on working capital lines for medium and large businesses. In the Special Business Installment Credit, the average rate will be CDI + 0.25% per month, compared to the previous rate of CDI + 0.28% per month. In the Special Credit of Investment Companies the rate went on average from CDI + 0.32% per month to CDI + 0.29% per month.
The president of Caixa, Rita Serrano, says in a statement that subsidized credit accelerates economic activity and that the bank encourages this process. “(Interest reduction) These are measures that reach all Caixa customers, helping companies to invest and hire again, and so that people can dream and plan their lives again,” he says.
At the beginning of August, when Copom began the Selic round of cuts, Caixa announced a reduction in interest on payroll loans intended for INSS beneficiaries.
Source: Terra
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