The average interest rate on payroll loans for private sector workers rose from 58.4% in September to 59% in October, according to data published by the central bank on Wednesday. This level is close to the 59.1% level recorded in April, the first full month of validity of the new special payroll model, called the Credit for Workers.
The BC data covers both loans under the new and old models. The fees are higher than the level charged before the launch of the program. In 2024, rates ranged between 38.5% and 40.8% annually.
Some factors help explain this change, such as the expansion of borrowers, who now have different profiles and credit risks, which can lead to an increase in interest rates.
Furthermore, a British Columbia study showed that workers who received credit under the new model worked at smaller companies, earned less income and had fewer job opportunities.
Concessions continued to rise in October, with an increase of 4.3% compared to September, reaching R$6.7 billion. In February, for example, royalties totaled R$1.6 billion.
British Columbia’s head of statistics, Fernando Rocha, confirmed that October was the third consecutive month of concessions worth more than R$6 billion. In August, it amounted to R$6.1 billion and in September, R$6.4 billion.
Default rates with this method reached 5% in October, the same level as in September. This level is lower than what was practiced before the launch of the credit program for workers. In March, for example, the percentage was 7.5%.