INSS Allows Payroll Loans Without Facial Biometrics for Retirees
Listen to the story
Brazil's social security institute, INSS, has released a new type of loan for retirees and pensioners.
This loan is a payroll-deductible loan, known in Brazil as consignado.
With this loan, monthly payments are taken directly from the person's pension.
Previously, applicants needed facial biometric verification to access this loan.
Facial biometrics is a security check that uses a photo or camera to confirm identity.
Now, INSS has removed this requirement for retirees and pensioners.
This change may make it faster and simpler for people to request the loan.
At the same time, a program called Novo Desenrola is being discussed.
Novo Desenrola focuses on the consignable margin of retirees.
The consignable margin is the part of a person's pension that can be used to pay back loans.
According to the report, a new law could change how this margin works.
The law might block the use of 10% of the monthly pension payment.
This 10% is currently often used for payroll loan payments.
If the law passes, it could directly affect how much retirees can borrow.
It is not yet clear when this law might be approved or take effect.
Many retirees and pensioners are expected to follow this issue closely.
The changes could affect millions of people who receive INSS pensions.
Financial experts may also comment on how this impacts household budgets.
For now, INSS has confirmed only the removal of the biometric requirement.
Further details about Novo Desenrola have not yet been fully announced.
Vocabulary8 words
- INSS
- the Brazilian government office that pays pensions
- payroll-deductible loan
- a loan paid back directly from salary or pension
- consignado
- the Brazilian name for a payroll loan
- facial biometric
- a check using your face to prove identity
- Novo Desenrola
- a government program about loans and pensions
- consignable margin
- the part of pension money allowed for loan payments
- identity
- who a person is
- household budget
- the money a family plans to spend
Quiz
Answer key
1. A payroll-deductible loan 2. Facial biometric verification 3. 10% of the monthly pension payment
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Brazil's social security institute, INSS, has released a new type of _____ for retirees and pensioners.
This loan is a payroll-deductible loan, known in Brazil as _____.
Previously, applicants needed facial _____ verification to access this loan.
Now, INSS has removed this _____ for retirees and pensioners.
At the same time, a program called _____ is being discussed.
Novo Desenrola focuses on the consignable _____ of retirees.
The law might block the use of _____% of the monthly pension payment.
This 10% is currently often used for _____ loan payments.
It is not yet clear when this law might be _____ or take effect.
For now, INSS has confirmed only the removal of the _____ requirement.
Discussion questions
- Why do you think facial biometrics was required for these loans in the first place?
- Do you think removing biometric checks makes loans safer or riskier? Why?
- How might a 10% block on pension payments affect retirees financially?
- Should governments limit how much of a pension can go toward loan repayments? Why or why not?