Government Agency financing for public employees and pensioners
Life holds many small and large contingencies that often require an economic commitment. From this point of view, public employees and pensioners have one more opportunity than the other workers: the Small Social Institute loan ex Government Agency. What is it about? What are the advantages offered to customers? How to request it.
Small loans 2017
First of all a formal clarification. The current small Social Institute loan was once disbursed by Government Agency, but this social security institution has been canceled and its functions have been transferred to Social Institute. Hence the name Small loan Social Institute ex Government Agency.
It is a product that allows to obtain a liquidity useful to face emergencies of public employees and pensioners enrolled in the unitary management of credit and social benefits. The repayment processes are structured in 12, 24, 36 or 48 installments.
Amounts and rate
The sums vary from a minimum of one to a maximum of eight net salaries of the applicant ‘s salary or pension. As far as interest rates are concerned, the application of a nominal annual interest rate corresponding to 4.25% is arranged.
Administrative expenses, equal to 0.50%, and a premium for the Social Institute Risk Fund, which varies according to the values reported in the Social Institute regulation, are added to the Tan.
Presentation of the application
Application procedures change based on the status of the applicant. If this is a member of the service activity, the applications must be submitted to the Administration of belonging, this, in turn, will take care of sending them electronically.
If, on the other hand, the applicant is retired, the applications must be sent directly electronically using the service made available by Social Institute on the official portal. On the same portal it is also possible to download the request form (in Pdf format).
Being a non-finalized financing, beyond the status of the client, this will not have to provide any expense documentation or even produce reasons or medical certificate.
How the Government Agency 2017 multi-year loan works
We remind you that Social Institute financing is not limited to the small Social Institute loan ex Government Agency. For more demanding needs, in economic terms, we have multi-year solutions, which consist of direct multi-year loans and guaranteed multi-year loans.
Direct loans make it possible to obtain liquidity in the face of documented personal and/or family needs, provided they are part of the requests set out in the Social Institute Regulation. The beneficiaries are always public employees and pensioners registered in the unitary management of credit and social benefits.
The repayment plan is of two types: five-year (60 monthly installments) or ten-year (120 monthly installments). The installment cannot exceed one fifth of salary or pension. The amounts that can be financed instead vary according to the reason for which the loan is requested, as established by the Social Institute Loan Regulation.
An annual nominal interest rate of 3.50% is applied to the gross amount of the loan . As for the small Social Institute loan ex Government Agency, administration costs are also provided (0.50%) and a premium for the payment of the Social Institute Risk Fund. The repayment of the installments takes place in the second month following that of the concession.
The multi-year secured loans are instead disbursed by banks and financial institutions affiliated with Social Institute, therefore we cannot determine the interest rates set by the lending institutions.
However, on the basis of the agreement signed with the Social Security Institute, banks and financial institutions that provide guaranteed multi-year loans are obliged to apply favorable interest rates to loans.
It is also necessary to specify that for the Social Institute to give its consent for the disbursement of the loan, the credit institution must indicate the APR applied. Rate which must be compared with the average rates indicated in the decree published, on a quarterly basis, by the Ministry of Economy in the Official Journal.
As the name suggests, the Social Institute guaranteed multi-year loans also enjoy a guarantee from the social security institution which undertakes to cover the financing in cases of reduction of salary, termination of service and death of the beneficiary.
How to calculate loans
Those who wish to calculate the installment of a loan ex Government Agency can use the special online simulator on the Social Institute.it website. However, this is a service that only concerns loans granted directly by Social Institute, i.e. the multi-year loan and the small Social Institute loan ex Government Agency.
To access the web application it is necessary to connect to the official Social Institute website and select “Services and Services” and from here choose the “Public Employee Management: simulation calculation of small loans and multi-year loans” service.
At this point, the user must choose one of the three calculation methods made available by the institution (loan simulation; loan simulation for ideal installment; loan simulation for specific amount) and enter the required data in the appropriate form.