BRASILIA - The Brazilian government on June 12 unveiled a subsidized credit scheme designed to enable app-based delivery drivers to purchase motorcycles, a measure presented by Planning Minister Bruno Moretti at the presidential palace in Brasilia.
Under the program, eligible female drivers will be offered loans with an annual interest rate of 11.5%, while male drivers will receive financing at an annual rate of 12.5%, both lower than the central bank's current benchmark rate of 14.5%.
State-run banks Caixa Economica Federal and Banco do Brasil have been designated to extend the financing to qualified borrowers. Moretti said a government-managed fund will absorb part of any losses to reduce credit risk for the participating lenders. He did not provide immediate details on the total volume of credit that will be available through the program.
Eligibility and covered vehicles
The scheme is aimed at purchases of motorcycles produced in Brazil, with electric models explicitly included among eligible vehicles. To qualify, app-based delivery drivers must have been registered on their platform for at least six months and have completed a minimum of 100 trips or deliveries. The program will also be open to cyclists, motorcycle couriers and taxi drivers who have been formally employed by the same company for at least six months.
Loan terms and repayment
According to a government statement, borrowers will benefit from a two-month grace period before repayments begin, and loan tenors may extend up to 48 months.
Policy context
Officials described the motorcycle credit initiative as one element of a package of quasi-fiscal measures the government has introduced since the start of the year. These measures, which are not reported as direct impacts on the federal primary balance, are intended to stimulate demand ahead of the October elections. President Luiz Inacio Lula da Silva is seeking a fourth non-consecutive term.
Other measures mentioned by authorities include a broad program to renegotiate overdue consumer debt, initiatives to encourage truck purchases and support for vehicle financing aimed at ride-hailing drivers. Finance Minister Dario Durigan reiterated plans on the same day to launch, later this month, a government program to renegotiate personal loans and other types of consumer debt for Brazilians who are current on their payments.
The program combines lower-than-benchmark interest rates, state-backed lending and a government loss-coverage fund to target a rapidly growing segment of the workforce that relies on two- and three-wheeled vehicles for income. Precise details on the scale of funding and longer-term fiscal treatment of the measures were not disclosed at the launch.