The landscape of payroll loans is evolving, with new rules creating opportunities for both fintech companies and investment funds.
According to Alberto Raman, president of the Raman Group, these changes are directly tied to their expertise in the financial sector.
“We are closely following the changes to the payroll-deductible loan rules, as they have to do directly with our area of expertise,” he stated. The government has been working since the start of the year to make payroll loans more accessible, and these efforts are paving the way for new and innovative solutions.
Government Initiatives to Simplify Payroll Loans
In February, the Minister of Labor and Employment announced a significant partnership between the Ministry of Finance, Caixa Econômica Federal, and the Ministry of Labor. This initiative aims to reduce the bureaucracy surrounding payroll loans, allowing employees to access credit more easily and with fewer intermediaries.
A key component of this initiative is the Digital Work Card, which is poised to become the primary tool for payroll loans among private-sector employees. Under the new rules, workers will be able to apply for loans via their mobile phones, directly accessing credit from their payrolls.
This marks a departure from the previous process, which required involvement from banks that had agreements with employers. The measure, approved by the FGTS Board of Trustees, was announced by the Ministry of Labor and is now awaiting publication in the Federal Official Gazette, along with a legal amendment to finalize the new process.
Relaxed Rules for INSS Insured Individuals
Another significant development is the easing of restrictions on payroll loans for new retirees and pensioners. The government agency responsible for social security, INSS, has issued a Normative Instruction that allows individuals to apply for payroll loans within the first 90 days of receiving their benefits.
This is a major shift from the previous rule, which had imposed a stricter restriction since 2022. This new rule will take effect in 2025 and will apply to those who are newly retired or receiving pensions.
Opportunities for Fintech’s and Investment Funds
The government’s new approach to payroll loans has opened up a range of new opportunities. With the increased flexibility in loan access, fintech companies and investment funds are emerging as viable alternatives for obtaining credit.
One such example is the Raman Group, which recently launched its own payroll loan fund. Registered with the Brazilian Securities and Exchange Commission (CVM) and managed by Monte Capital, the fund aims to diversify the available options for payroll loans.
The fintech arm of the Raman Group initially provided financial solutions to businesses and has grown to manage a portfolio of nearly R$400 million. Additionally, the company has acquired VemCard S.A., a specialist in payroll benefit cards, which has already generated R$200 million in credit rights.
The future looks promising for the Raman Group, which has ambitious plans for growth in this sector. “By investing in people and technology, our fund comes at a very opportune time, when it has never been easier to acquire credit as advantageous and secure as payroll loans. Our intention is to operate up to R$1 billion in credit rights,” says Alberto Raman.
Conclusion
The new rules surrounding payroll loans represent a shift towards greater accessibility and flexibility, benefitting employees, retirees, and businesses alike. With fintech companies and funds like the Raman Group leading the way, the payroll loan market is set for significant expansion.
As digital solutions become more integrated into financial services, payroll loans may soon become easier and faster to obtain, providing a secure and beneficial form of credit for millions of people.
