It was a Piper PA-42 1000. Twin Turboprop. Crew 1-2. Pax 6-9.
It could have handled that load theoretically. But it would likely be near max load if not over.
If not over, any engine fault, any climb would be impossible.
So yea, probably an overload condition.
Or maybe not...
The agency in a post on X said the plane hit the chimney of a home and then the second floor of a building before crashing into a mobile phone shop in a largely residential neighborhood of Gramado. More than a dozen people who were on the ground were taken to hospitals with injuries including smoke inhalation, with two said to be in critical condition.
Weather was not mentioned.