CMN approves interest on Fies Empreendedor loans during grace period

On Friday, July 10, the Conselho Monetário Nacional (CMN) approved a change to the regulation of the Fies Empreendedor credit line. The amendment means that borrowers – students and former students who are current with their Fies payments – will now be charged interest during the grace period (carência). Previously the program exempted interest while payments were suspended. The interest will be calculated on the principal amount, capitalised into the total debt, and may reach up to 11.19% per year (8.94% for financial institutions and 2.06% for Union resources). The grace period remains up to six months for individuals and twelve months for legal entities. Loans continue to be managed by Banco do Brasil and Caixa Econômica Federal. The rule change is intended to align the programme with market practices while still encouraging entrepreneurship among compliant Fies borrowers, but it raises the overall cost of the financing.