Brazilian salary-backed credit market expands 225% amid high interest rate environment

Salary-backed credit in Brazil surged from R$ 43 billion to over R$ 140 billion between March and June 2026, driven by consumers seeking lower-interest alternatives to high-cost revolving credit. This shift reflects a structural pivot in household debt management as banks and fintechs prioritize secured lending to mitigate delinquency risks in a high Selic rate environment.