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Brazilian digital loan platform Geru eyes consigned credit segment

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Brazilian digital loan platform Geru eyes consigned credit segment

Brazilian online loan platform Geru Securitizadora de Créditos Financeiros SA is expanding to the consigned credit segment by offering discounted payroll loans to retirees and pensioners of social security institute INSS, Reuters reported.

The credit line is in partnership with local BNP Paribas SA unit Banco Cetelem SA. Loans will range from 2,000 Brazilian reais to 80,000 reais and will have a rate of 1.8% per month, according to Geru.

INSS will allow beneficiaries to allocate up to 30% of their income for loan repayment.

Geru will emphasize value-adding features such as agility and transparency to attract INSS beneficiaries who have their payroll loans at other institutions, said Ana Carla Rodrigues, Geru's payroll manager.

The volume of payroll loans for INSS beneficiaries hit 117.5 billion reais in January, up 14.8% year over year, data from Banco Central do Brasil said.

As of March 2, US$1 was equivalent 3.26 Brazilian reais.