July 30, 20 - 11:37 am - LABS

Brazilian small businesses to access loans of up to BRL 50,000 through POS devices

The Brazilian Congress approved a new line of credit of BRL 10 billion to be granted via POS devices used by retailers. Loans will be 100% backed by the National Treasury, as the measure is another attempt to unlock credit for small entrepreneurs during the Covid-19 pandemic.

Individual microentrepreneurs, micro and small businesses will have access to them, as they are segments that have had more difficulty in accessing credit in traditional lenders.

POS terminal
Photo: Shutterstock

Through the POS devices, creditors will receive information about the amount they will be entitled to. “Everything can be done electronically,” explained Ligia Ennes, deputy undersecretary of the Economic Policy Secretariat of the Ministry of Economy, to Estadão. Banks will offer the loans, but the Treasury will act as a guarantor.

Interest rates are up to 6% per year on the amount granted and terms are set to 36 months for payments, including a six months grace period. The amount of available credit will be calculated based on the monthly average billing observed in the previous 12 months before the pandemic. Loans can reach up to double that average, but it cannot exceed BRL 50,000.