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7h ago

FGTS Birthday-Withdrawal Advances Drop 80% After New Rules as Banks Seek Easing

The banking association says a new R$100 minimum installment drove the decline, cautioning the credit line may become unviable without relief.

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Overview

  • November volumes fell from about R$ 3 billion to R$ 600 million, according to ABBC.
  • The association says the restrictions hit low-income, credit-constrained workers, noting 9 million unemployed among 26 million prior users and 74% with negative credit records.
  • ABBC attributes roughly 90% of the decline to the new R$ 100 minimum per annual installment.
  • The Council’s package also added a 90-day waiting period, limited advances to five years until October 2026 then three years, set a R$ 100–R$ 500 band per installment, and restricted each worker to one operation.
  • A survey of five lenders covering about 40% of operations found only 25% approval in the new private payroll-deducted credit at rates above the prior 1.79% a month cap, and ABBC proposes a R$ 50 floor plus removal of the one-operation cap to limit the drop to roughly 35% instead of a slide toward 5% of earlier volumes.