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Nu launches payroll loans for retirees and pensioners of the National Institute of Social Security in Brazil

October 26, 2023
Por
Mariana Ribeiro
Mariana Ribeiro
Repórter no Valor Econômico
📷
LinkedIn
The product joins the alternative for federal civil servants, announced in March.
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Nubank announced today the expansion of its payroll loans offer, now for retirees and pensioners of the National Institute of Social Security (INSS). The product joins the alternative for federal civil servants, announced in March.

About the product

The new option will be available gradually over the coming months to the eligible customer base. According to Nubank, the institution's entry into the category is part of its strategy to expand its operations in low-risk lending, "reducing complexities and passing on to customers the efficiency gains obtained in this process".

Payroll loans for pensioners will start at 1.35% per month. The bank's option for civil servants has an average rate of 1.4% per month, according to Central Bank (CB) data.

"Nubank will continue to actively contribute to the evolution of the payroll deduction market with this digital proposal," said Livia Chanes, Nubank's head of operations in Brazil, in a statement. "This allows us to offer competitive rates, with a complexity-free experience, now also available to pensioners who increasingly rely on our platform."

The entity highlights that the transaction is carried out digitally and that the customer can see the rates and the total effective cost (TEC) of the loan during the simulation.

Growth in its offering

As part of NuConsignado's evolution, Nubank has also started testing the payroll loan portability option with part of its federal civil servant customer base. The same tests will soon be conducted with INSS pensioners.

In recent months, the bank has expanded its range of secured lending options. Eligible customers can now take out personal loans based on investments made through the Nu platform and make early withdrawals from the FGTS.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y de ellas son responsables sus autores. No reflejan ni comprometen el pensamiento u opinión de Latam Fintech Hub, por lo cual no pueden ser interpretadas como recomendaciones emitidas por la platafomra. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista sobre el ecosistema Fintech.

Nubank announced today the expansion of its payroll loans offer, now for retirees and pensioners of the National Institute of Social Security (INSS). The product joins the alternative for federal civil servants, announced in March.

About the product

The new option will be available gradually over the coming months to the eligible customer base. According to Nubank, the institution's entry into the category is part of its strategy to expand its operations in low-risk lending, "reducing complexities and passing on to customers the efficiency gains obtained in this process".

Payroll loans for pensioners will start at 1.35% per month. The bank's option for civil servants has an average rate of 1.4% per month, according to Central Bank (CB) data.

"Nubank will continue to actively contribute to the evolution of the payroll deduction market with this digital proposal," said Livia Chanes, Nubank's head of operations in Brazil, in a statement. "This allows us to offer competitive rates, with a complexity-free experience, now also available to pensioners who increasingly rely on our platform."

The entity highlights that the transaction is carried out digitally and that the customer can see the rates and the total effective cost (TEC) of the loan during the simulation.

Growth in its offering

As part of NuConsignado's evolution, Nubank has also started testing the payroll loan portability option with part of its federal civil servant customer base. The same tests will soon be conducted with INSS pensioners.

In recent months, the bank has expanded its range of secured lending options. Eligible customers can now take out personal loans based on investments made through the Nu platform and make early withdrawals from the FGTS.

Las opiniones compartidas y expresadas por los analistas son libres e independientes, y solamente sus autores son responsables de ellas. No reflejan ni comprometen el pensamiento o la opinión del equipo de Latam Fintech Hub y, por lo tanto, no pueden interpretarse como recomendaciones emitidas por la plataforma. Esta plataforma es un espacio abierto para promover la diversidad de puntos de vista en el ecosistema Fintech.

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