In São Paulo, lending between individuals is legal if the mútuo contract is in writing, the interest stays below the Lei da Usura cap, the money moves by Pix or TED and the claim appears in the lender's IRPF income tax return.
South America's largest city
With more than eleven million inhabitants in the municipality and over twenty million in the metropolitan area, São Paulo accounts for a major share of Brazil's GDP. Shopkeepers, employees and informal workers often turn to family loans to avoid expensive bank credit.
Faria Lima, Paulista and the fintech ecosystem
Avenida Faria Lima and Avenida Paulista host banks, asset managers and lending fintechs. Some operate as SEPs, peer-to-peer lending platforms authorised by the Central Bank; always check this authorisation before entrusting funds to an unfamiliar app.
Immigrant communities and informal loans
Japanese in Liberdade, Koreans in Bom Retiro, Bolivians in Brás, Lebanese and Syrians: the city hosts many diasporas where financial mutual aid flows outside the banks. These arrangements are better put in writing, as our page on loans to immigrants points out.
Agiotas and violent debt collection on the outskirts
In some outlying districts, illegal lenders advance small sums at extortionate monthly rates and collect through threats. This agiotagem falls under Law 1,521 of 1951; a victim of threats should file a complaint, even while still owing money.
Mútuo contracts and São Paulo cartórios
São Paulo has many cartórios de notas and Registro de Títulos e Documentos offices. Recognising signatures and then registering the contract gives it a certain date and third-party effect; a deed signed with two witnesses is enforceable before the São Paulo Court of Justice.
Usury: the same ceiling as elsewhere in Brazil
The Lei da Usura limits interest between individuals to twice the legal rate, now indexed to the gap between the Selic rate and IPCA inflation. A loan between neighbours in Mooca or Itaquera therefore follows the same rules as one agreed in Brasília or Recife.
Tax: the claim in the Paulista lender's IRPF
The lender enters the amount lent under Bens e Direitos and declares interest received as personal income. The State of São Paulo may also claim ITCMD if a family loan turns out to be a disguised gift; see our page on private loans and tax.
Fake loan golpes on Instagram and WhatsApp
Profiles claiming to represent a São Paulo financeira promise credit with no Serasa check, then demand a registration or insurance fee by Pix. The loan never arrives: this is the advance-fee fraud described in our report on fake lenders.
Fundação Procon-SP and the Public Defender's Office
Fundação Procon-SP deals with complaints against financeiras, banking correspondents and credit apps. The Defensoria Pública of the State of São Paulo gives free advice to modest households, notably when facing a usurious contract or a contested seizure.
Online police station and São Paulo civil police
The state civil police let you file a boletim de ocorrência for fraud online. Large computer frauds can be passed to specialised units; provide the Pix keys, the profile names and screenshots of the conversations you had with the fraudster.
USP students and young workers
The University of São Paulo and the many private faculties attract students from all over the country, often supported by their families. A parental loan for the rent of a room in Butantã or for tuition fees also deserves a dated written record.
Rio, Brasília and national rules
Since the rules on usury, tax and platform authorisation are federal, our national guide to peer-to-peer loans completes these local pointers. Paulistanos lending to a relative in Rio de Janeiro will also find the remedies available in the other metropolis.
Steps for a secure private loan in São Paulo
- Ask the borrower for their Registrato statement and, if they run a business, the status of their CNPJ.
- Write a mútuo contract in reais stating the monthly rate, the term, the guarantees and late-payment interest.
- Have two witnesses sign and get the signatures recognised at a cartório de notas in the city.
- Pay the money by Pix or TED into an account in the borrower's name and keep the comprovante.
- Before using an app, check that it appears among the institutions authorised by the Banco Central.
- Declare the claim, the debt and the interest in the IRPF, then keep every repayment receipt.
What a private loan costs in São Paulo
| Item | Guide in reais | Comment |
|---|---|---|
| Freely agreed interest between individuals | Capped at twice the legal rate, indicative | Legal rate indexed to Selic minus IPCA since 2024 |
| Signature recognition at a cartório | Per-signature fee set by the State, indicative | Proves the signatories' identity |
| Registration at Registro de Títulos e Documentos | São Paulo fee scale, indicative | Recommended for large amounts |
| SEP platform commission | Varies by platform | Read the total effective cost before signing |
| ITCMD on a disguised gift | Rate set by the State of São Paulo | Risk if the loan is never repaid |
| Fee charged by a fake Instagram lender | Total loss | Report to the police and the bank |
Useful supporting documents in São Paulo
- RG, CNH or RNM for foreign residents, plus CPF
- Comprovante de residência in São Paulo
- Holerite payslip, bank statement or income tax return
- Mútuo contract signed by two witnesses
- Signature recognition from a cartório
- Pix or TED comprovante
- Repayment table
Missteps and scams in the Paulista metropolis
- Paying a taxa de cadastro by Pix to a so-called financeira on Avenida Paulista contacted through Instagram.
- Letting a neighbourhood agiota keep your bank card, your password or a cheque signed in blank.
- Lending a large sum in cash in a Brás shop without anything in writing, which makes the claim almost impossible to prove.
- Signing a contract in Portuguese without understanding it as a recent migrant, instead of having the Defensoria review it.
- Choosing a loan app missing from the Central Bank list or one that demands access to all the phone's contacts.
Private loans in São Paulo: practical answers
Are peer-to-peer lending platforms legal in São Paulo?
Yes, if the Central Bank has authorised them as a Sociedade de Empréstimo entre Pessoas. Before investing or borrowing, look the company up in the official list of authorised institutions and read the total effective cost stated in the proposed contract.
Can a foreigner living in São Paulo borrow from a private individual?
Yes. A foreigner holding a CPF and a migration document can sign a mútuo contract just like a Brazilian. They must understand the Portuguese text; if in doubt, the Defensoria Pública or a lawyer can explain it before signing.
What should I do about threats from an agiota?
Do not pay under pressure, and file a complaint with the civil police describing the threats, the sums paid and the rates demanded. Agiotagem is an offence, and a judge can reduce usurious interest, which the Defensoria can help you request.
Whom should I contact after a fake Instagram loan in São Paulo?
Call your bank at once to trigger the Pix refund mechanism, file a boletim de ocorrência online and report the profile to the social network. A complaint to Procon-SP is useful if a real company was involved in the transaction.