Brazil's social security agency, the INSS, said on Monday (24) that retirees and pensioners who do not have facial biometrics registered in government databases will be able to take out payroll-deducted loans, known locally as consignado, by validating their bank account details. The rule is set out in a normative instruction from the agency and is already in force, according to a report by news portal G1, which cited an official statement.

When a beneficiary logs in, state IT company Dataprev checks whether a biometric record exists in government databases. If none is found, the system allows access through the federal Gov.br portal and validates the user's banking data, which then serves as authentication in the Meu INSS app to authorize loan contracts. The agency said facial biometrics remains the main way to access this type of credit, and the change should extend the service to people without a biometric record.

"In practice, the change prevents the lack of a biometric record from blocking access to the loan. Bank data authentication becomes an alternative for these people, while the express authorization of the benefit holder remains mandatory," the INSS said in a statement.

Rule followed discount scandal

The biometrics requirement for payroll loans took effect in May this year, under a law passed in 2026. It was adopted to protect retirees and pensioners after a scandal over unauthorized deductions made by entities and associations from INSS pensions and retirement benefits. The Federal Court of Accounts (TCU), Brazil's public spending watchdog, had also recommended the use of biometrics to curb fraud.

Portability

The new rule also covers loan portability, when a beneficiary moves the debt from one bank to another. The request is made to the destination bank and authorized through Meu INSS, either by biometrics or, without a biometric record, by bank data validation. Signing the Portability Authorization Form is still required.

The originating bank has up to 20 days to confirm the operation. If it does not, the portability request is automatically cancelled.