Nubank expands secured credit offering and launches FGTS-backed loan
The experience is 100% app-based, from taking out the loan to managing its installments, with interest rates starting at 1.3% per month, depending on the customer's profile
Sep 12 , 2023
São Paulo, September 12, 2023 – Nubank is launching one more type of secured loan for its customers in Brazil: the FGTS-backed loan. The new product aligns with the company’s plan to expand its secure credit offering in 2023 and is gradually being made available to the eligible customer base.
FGTS (Severance Pay Fund for Length of Service) is a mandatory savings fund for employees in Brazil, in which employers are required to deposit a percentage of an employee’s monthly salary. The money can only be withdrawn in the birthday month of each employee or on specific occasions, such as after a job loss or to make a down payment on a property.
For this new offer, the interest rate practiced by Nubank starts at 1.3% per month, depending on an individual analysis of each eligible customer’s profile. “Today, we already offer the best rates on the market in other modalities, such as NuConsignado (Nubank’s payroll-backed loan), within our purpose of reflecting our cost efficiency on to the customer,” explains Livia Chanes, Nubank Brazil’s country manager. “We are focused on offering more and more credit options that are financially advantageous for customers and with reduced risk for the company. Loans backed by FGTS are one of the best examples in both aspects. The option also allows the customer to obtain credit responsibly, without compromising part of their monthly budget, optimizing their money,” she adds.
By opting for the FGTS-backed loan at Nubank, customers have the possibility of early withdrawal of up to 12 annual installments. The payment of the requested credit occurs annually and directly from the person’s FGTS account balance, without compromising their budget or monthly income. The request process and management of the loan – including the possibility of early repayment of annual installments – are done directly through the Nubank app.
The new product adds to other possibilities already offered by the company for loans with investments as collateral (Nubank’s RDB Planejado and Tesouro Direto), NuConsignado (currently available for federal public servants), and personal loans, available since 2019.
With the FGTS-backed loan, Nubank expands access to its credit line for a representative portion of its more than 80 million customers in Brazil. “In this sustainable and resilient expansion of our loan portfolio, Nubank starts serving a considerably larger customer base with an appropriate liquidity option for any emergency or plan. The complexity-and-bureaucracy-free experience, in a 100% digital process, allows us to offer competitive interest rates with total transparency,” says Livia.
For media inquiries, please reach out to firstname.lastname@example.org and email@example.com.
Instituto Nu and Descomplica launch a technology education program that can impact 10,000 socially vulnerable people
Instituto Nu celebrates more than 4,000 vacancies in technology courses and announces entrepreneurship vertical