Brazil's Worker Credit Scheme Shows 73% Drop in Loan Size After One Year

A year after Brazil launched the private payroll‑loan product known as Crédito do Trabalhador, data from Serasa Experian indicate rapid expansion in contracts but a sharp decline in loan amounts. The number of contracts rose from about 11,000 to more than 25,000, while the average loan fell 73% – from R$ 8.6 thousand to R$ 2.3 thousand – and the average term dropped 48%. Competition increased, with the average number of financial institutions offering credit per company climbing from four to twenty‑one.

The Central Bank reported that monthly volumes released through private payroll loans surged from R$ 1.5 billion to nearly R$ 11 billion. Yet 78% of borrowers have more than 81% of their income tied up in debt, and 86% of loans went to borrowers with low credit scores. "O Crédito do Trabalhador levou bancos e empresas a reorganizarem a lógica de concessão diante de um novo perfil operacional do mercado," said Délber Lage, CEO of SalaryFits, a Serasa Experian subsidiary.

A regulatory change set to take effect on 23 June requires employers to check active loan contracts during termination procedures. Deductions may be applied up to 10% of the FGTS balance and, if opted, up to 100% of the termination fine, but only when a loan exists and the chosen guarantees are in place. Employers must consult the Portal Emprega Brasil and report correctly in eSocial.