Brazil President Lula sanctions R$ 30 billion credit law for drivers

President Luiz Inácio Lula da Silva has sanctioned a law providing up to R$ 30 billion in credit lines for taxi drivers, ride-hailing drivers, school transport drivers, and cooperatives. The initiative aims to facilitate the acquisition of new sustainable vehicles, including electric, hybrid, ethanol, or flex-fuel models priced up to R$ 200,000.

As a continuation of the Move Brasil program, the law allows for installments of up to 84 months. Interest rates for cars and motorcycles are set at 12.6% per year for men and 11.5% per year for women, inclusive of banking fees and spread. To qualify, ride-hailing drivers must have an active registration for at least six months and have completed at least 100 trips on the same platform during that period. Taxi drivers must maintain active licenses and fiscal regularity.

The credit lines will be operated by BNDES, Banco do Brasil, and Caixa Econômica Federal, with the Guarantee Fund for Operations (FGO) potentially covering up to 100% of individual operations. The law also permits financing for vehicle insurance, adaptations for drivers with disabilities, and safety items for female drivers.