Background on the Change and Its Relevance
Currently, workers can only obtain payroll-backed loans from the bank where they hold their salary-receiving account. However, starting August 29, 2025, the Mexican central bank, Banco de México (Banxico), has introduced new regulations that will allow workers to apply for these loans at any bank of their choice, while the deductions will still be made from their original salary account.
Banxico’s New Regulations
On this Friday, Banxico issued new provisions concerning the use of labor benefits as collateral for financial services contracted by workers. These regulations expand existing credit options, enabling any bank to offer payroll-associated credit.
The central bank explained that the new regulation will allow workers to use their salaries and labor benefits, deposited in their payroll accounts, as a payment source for any credit they choose to contract with lending institutions.
Banxico emphasized that these changes aim to broaden financing options, allowing any bank to offer payroll-linked credit. This move will also encourage competition among financial institutions, resulting in better credit terms for workers by giving them the freedom to select the most suitable lender.
The bank added that these modifications and additions in the issued provisions establish an additional credit mode alongside existing ones.
According to Banxico, these measures aim to foster a more competitive and accessible financial environment by providing workers with more options for meeting their financing needs.
What are Payroll-Backed Loans?
Payroll-backed loans, as per Banxico’s information, are credits given to workers whose salaries are deposited into a payroll account at a financial institution.
Traditionally, these loans have been offered by the same bank that provides both the payroll disbursement service contracted by the company and the salary deposit accounts for workers.
Unlike other consumer credit types, payroll-backed loans have the bank directly deducting loan payments from the worker’s payroll account without requiring an intermediary payment process.
Currently, payroll-backed loans account for approximately 25% of the total consumer credit issued by banks.
As of May’s end, the balance of the bank credit portfolio for payroll-backed loans stood at 402 billion pesos.
Key Questions and Answers
- What are payroll-backed loans? Payroll-backed loans, also known as salary-linked credit, are financial products offered to workers using their salaries deposited in payroll accounts as collateral.
- Why is this change significant? The new regulation by Banxico allows workers greater flexibility in choosing the bank for their payroll-backed loans, fostering competition and potentially leading to better credit terms.
- What percentage of consumer credit do payroll-backed loans represent? Payroll-backed loans account for around 25% of the total consumer credit issued by Mexican banks.
- What was the payroll-backed loan portfolio balance as of May 2025? The balance stood at approximately 402 billion pesos.
