INSS Allows Payroll Loans for Beneficiaries Without Facial Biometrics
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INSS, Brazil's social security agency, has announced new rules for beneficiaries who have not completed facial biometrics.
These beneficiaries will now be allowed to take out a consignado loan, a type of loan where payments are automatically deducted from a person's benefit each month.
Instead of a face scan, banks will use bank data validation to confirm the identity of the beneficiary before approving the loan.
This change means people who could not use biometric systems, for various reasons, will not be excluded from access to credit.
However, INSS has also introduced a safety rule: new beneficiaries will not be able to take out a consignado loan during the first 90 days after starting to receive benefits.
This 90-day block is designed to prevent fraud, since criminals sometimes try to open new benefit accounts to request loans quickly before proper checks are made.
The measure aims to balance two goals: giving more people access to credit while still protecting them and the system from scams.
INSS beneficiaries include retirees and people who receive disability or other social benefits. Many rely on consignado loans because the interest rates are usually lower than other types of personal credit.
The agency has not given further details in the summary about specific banks or interest rates involved in this new process.
Officials say the new validation system should make it easier for beneficiaries without biometrics to access credit safely and legally.
Vocabulary11 words
- facial biometrics
- using a photo of your face to prove who you are
- consignado loan
- a loan paid back automatically from your monthly income
- bank data validation
- checking bank information to confirm someone's identity
- beneficiary
- a person who receives government payments
- fraud
- illegal action to trick people and steal money
- disability benefit
- money given to people who cannot work due to health problems
- identity
- who a person is, proven by documents or data
- credit
- money lent to someone that must be paid back
- interest rate
- the extra cost of borrowing money, shown as a percentage
- measure
- an official action taken to solve a problem
- retiree
- a person who has stopped working, usually due to age
Quiz
Answer key
1. To help beneficiaries without facial biometrics access loans 2. Beneficiaries cannot take out a consignado loan 3. True
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
INSS, Brazil's social security agency, has announced new rules for beneficiaries who have not completed _____.
These beneficiaries will now be allowed to take out a _____, a type of loan.
Payments are automatically deducted from a person's _____ each month.
Instead of a face scan, banks will use _____ to confirm identity.
New beneficiaries will not be able to take out a consignado loan during the first _____ days.
This block is designed to prevent _____.
Criminals sometimes try to open new benefit accounts to request loans before proper _____ are made.
The measure aims to balance access to _____ while protecting beneficiaries.
INSS beneficiaries include retirees and people who receive _____ benefits.
Officials say the new system should make access to credit safer and more _____.