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The Federal Government Imposes New Interest Rate Cap on Payroll-Deducted Loans and Changes Rules for Automatic Deductions, Bringing More Transparency and Financial Relief for Workers and Retirees
The federal government has decided to tighten the reins on interest rates for payroll-deducted loans, and the change promises to directly impact the finances of millions of Brazilians.
The new rule imposes a limit on the rates charged by banks and redefines how automatic deductions will be made from payroll.
The idea is simple: to give breathing room to those who are in debt and bring a bit of transparency to one of the most popular (and controversial) types of loans in the country.
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What Changes in Practice
From now on, financial institutions will have to respect a fixed interest rate cap for payroll-deducted loans — those deducted directly from the salary or INSS benefit.
Additionally, the regulation restricts how much can be deducted from the salary each month, preventing workers from being left with virtually no disposable income.
Another important point: banks will have to clearly and upfront show the total cost of the loan and the actual amount of the installments.
Gone are the tiny print and contracts that confuse more than they inform.
Why the Measure Was Necessary
For years, the payroll-deducted loan was marketed as the “salvation of cheap credit.”
In practice, what was seen was the opposite: rates varied by as much as 3.23 percentage points between banks, leaving thousands of Brazilians drowning in hard-to-pay debts.
In many cases, deductions swallowed nearly half of their salaries.
According to the Central Bank, household debt hit a record high in 2025, with payroll-deducted loans representing an increasingly larger share.
The new rule arises precisely to contain this domino effect, ensuring that credit becomes a help, not a sentence.
Relationship with Previous Laws
The decision complements the Law No. 15.179/2025, enacted in July, which expanded access to payroll-deducted loans for private sector workers and allowed the use of FGTS as collateral.
If the law opened the door to credit, the new measure attempts to put on the brakes, balancing the game between banks and consumers.
Now, it will be up to the Central Bank and Procon to oversee compliance with the rules and punish those who insist on exceeding the charging limits.
Stricter Rules for Automatic Deductions
Among the most anticipated changes are the new deduction parameters:
- Maximum deduction of 35% of salary or benefit.
- Express digital authorization from the worker for new contracts.
- Minimum grace period of 90 days between repayment of one loan and taking out another.
- Mandatory monthly statement with deducted amounts and the remaining debt balance.
These measures aim to put an end to the vicious cycle of “loan on top of loan,” which turned credit into a trap.
Relief for Those Who Need It Most
Retirees, pensioners, and public servants are among the main beneficiaries.
With lower interest rates and more transparent contracts, the government hopes to reduce the average cost of credit by up to 20% in the coming months.
And, on top of that, reduce scams against the elderly, a growing problem throughout the country.
Economist João Medeiros from the Institute of Public Finance sums up the sentiment:
“Credit doesn’t need to disappear. It just needs to stop being a nightmare. This rule puts the consumer back at the center of the game.”
Not Everyone Is Satisfied
On the other side, the banking sector reacted poorly.
For large banks, limiting rates may reduce the availability of credit and discourage operations in this modality.
The criticism is recurring: finding a balance between protection and financial freedom always generates friction.
But for the government, the moment demands restraint, and the debt data speaks for itself.
What to Do If You Already Have a Payroll Loan
If your contract is active, it will not be automatically altered, but it’s worth reviewing the conditions.
Check the interest rate, compare it with the new cap, and if it’s above, request a renegotiation.
The new regulation also facilitates the portability of the debt, allowing you to switch to another bank that offers lower interest rates.
If the institution refuses to adjust the contract, the consumer can contact Procon or the Central Bank, which now have the power to intervene.
A New Credit Scenario
The Treasury bets that, over time, the market will adjust.
Credit will continue to exist, just in a more responsible way.
The idea is to stimulate consumption without pushing Brazilians to the brink of debt, and to transform payroll-deducted loans into an instrument of inclusion, not financial exclusion.
Will it work?
Time will tell.
But for the first time in years, workers seem to have a real chance to breathe before signing the next contract.
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