Brazil's Worker Credit Program Spurs Multiple Loans per Borrower

A Serasa Experian analysis of 191,798 contracts signed up to April 2026 found that 74% of workers using the Crédito do Trabalhador have two or more active consignado loans. More than half of those with multiple loans (54.6%) obtained credit from different banks, and 29% of second‑loan borrowers face higher interest rates than on their first loan. Smaller loans of up to R$1,500 represent 44% of contracts and carry interest about 7% higher than larger‑value loans.

The Crédito do Trabalhador was introduced by the Brazilian federal government in March 2025 as a payroll‑deduction loan specifically for private‑sector employees with formal (CLT) contracts. It is promoted as a customized alternative offering lower interest rates due to reduced default risk and allowing borrowers to choose among multiple lenders rather than being tied to a single employer agreement. Advocates highlight four benefits: a product designed for CLT workers, lower rates, easier access, and flexibility in lender choice.

A complementary survey by the Brazilian Association of Financial Education Professionals revealed that 83% of users do not know the interest they pay, and 69% have active credit restrictions, indicating limited awareness of loan costs.