Brazil’s central bank considers limits on unsecured loans — The Rio Times

Brazil’s Central Bank is considering introducing limits on unsecured loans and credit cards based on customers’ income. The initiative may also provide for stricter checks of borrowers’ ability to repay and more transparent disclosure of rates, terms and the cost of credit before a contract is concluded, The Rio Times reports.

According to the publication, Reuters reported on October 20 that a package of measures was being discussed, citing two sources familiar with the consultations. According to them, the regulator may introduce the new rules in stages. Brazil’s Central Bank did not comment on the information, and no official regulation has yet been published.

Household debt burden

In July 2026, Brazilian household debt reached 49.86% of their income over the previous 12 months, or 49.9% after rounding. This is close to the highest level since the beginning of 2020: in January, it stood at 49.92%.

Credit bureau Serasa counted 83.98 million people with overdue debts in August, 0.06% more than in July. Brazil’s Selic benchmark rate stands at 13.75%.

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The central bank’s Financial Stability Committee said at its August 25–26 meeting that household indebtedness remains at a historically high level, while the share of income allocated to debt servicing has reached a record. The meeting minutes state that the regulator is preparing measures for the timely recognition of risks and more sustainable lending.

What was reported about the possible measures

According to Brazilian media, banks may be required to assess whether a customer can repay a loan without placing an excessive burden on their budget, as well as whether the credit product corresponds to their financial situation. Central bank President Gabriel Galípolo said on September 24 that the regulator was concerned about the aggressive and potentially predatory offering of loans. According to him, the measures may primarily apply to the most expensive unsecured credit products.

The regulator is also studying Singapore’s experience, where unsecured lending for some borrowers is limited to a multiple of income. At the same time, it is unknown which specific credit products in Brazil could be covered by the potential limits, what their size would be and when they could be introduced.