In the consumer credit market, there is the possibility for civil servants and pensioners of the Public Administration to take advantage of the subsidized loans granted by Government Agency.
Thanks to the Save Italy Decree, the National Institute of Social Security and Assistance for Public Administration Employees has been incorporated by Social Institute. In fact, the application for the disbursement of one of the Government Agency loans is submitted to the National Social Security Institute. Consequently, even if the Government Agency wording remains, to all intents and purposes these loans are granted by Social Institute.
In order to benefit from the Government Agency subsidized loans, one must be classified in the public sector or be retired from the Public Administration. For the former, there is the possibility of requesting the loan from those who have signed an open-ended, fixed-term employment contract or other types allowed by law such as flexible work at a State Administration or are employed by the Regions, Provinces and Municipalities . Beyond this, it is necessary to be enrolled in the Unitary Management of Social and Credit Benefits.
In the case of civil servants, registration is automatic when the subordinate employment contract is signed, in the case of pensioners the request must be submitted at the time of retirement.
The types of consumer credit disbursed by Government Agency are: small loans, multi-year direct loans, multi-year guaranteed loans and loans to pensioners with the assignment of a fifth.
These are the financial instruments for consumer credit granted by the National Institute of Social Security, which require the essential conditions examined above to be disbursed and differ in the type of application, the amount of the loan and the presence of a guarantee on the amount granted.
This type of consumer credit is particularly advantageous in several respects. It is granted without the need to present a reason for the disbursement of the sum of money.
It is not necessary to show any documentation attesting to a state of need or need, just fill in the appropriate form. For workers, you can go to your administration or by following the online procedure on the Social Institute website. For pensioners, it is presented online or by contacting the patronage.
The payable amount is as follows:
The amortization of the two disbursement methods is the same: the loan can be repaid in 12, 24, 34 or 48 installments. Obviously the amount of the monthly installment varies according to the type of small loan granted, but it can never exceed one fifth of the salary or pension.
In the case of double monthly payments, there must be no other weights, such as any previous loans. If the civil servant is subject to a fixed-term contract, he can apply for the loan.
Nonetheless, the amount payable is commensurate with the remaining period of service, to guarantee the refund of the amount granted. The TAN is 4.25%, to which must be added 0.5% for administrative and management costs, deferral interests at the time of submitting the application and the contribution to the Risk Fund.
There are basically two differences between a small loan and a multi-year loan: the amount payable, greater in the case of the second type, is that to obtain this loan, it is necessary to provide the documentation required by law. In fact, the multi-year loan is allowed for personal, family needs and from 2011 also for the purchase of the first home in favor of an adult child who wants to create his own autonomous family.
The documentation must be submitted within one year of the request. Public and retired workers of the Public Administration registered in the Unitary Management of credit and social benefits can apply for the loan.
Workers must have a four-year permanent employment contract and the same amount of time must have elapsed for the payment of contributions to the Credit Fund. In the case of employees with a temporary contract, they determine not less than three years, they can request a loan provided that the TFR is transferred to guarantee the repayment of the amount paid.
Amortization is expected in 60 installments or 120 monthly installments. The maximum amount is one fifth of the salary or pension, while the interest rate is 3.5%, to which are added 0.5% of management and administrative expenses and a premium for the Risk Fund. The loan request must be submitted exclusively electronically, by connecting to the specific reserved area of the Social Institute website for the management of the former Government Agency.
The guaranteed multi-year loans are subject to the same regulation as the direct multi-year loans, the difference is that the National Social Security Institute guarantees the disbursement of the sum through the Credit Fund.
This is done to protect against events such as the death of the debtor, dismissal for termination of service without entitlement to retirement or reduction of salary.
Social Institute has signed special agreements with banks and financing institutions in order to grant retirees the possibility of applying for a loan at advantageous conditions. In order to obtain this consumer credit, the pensioner is required to report the transferability of the pension within the limit of a fifth.
From here the amount of the monthly installment is determined, for which the transferable portion requested from Social Institute must be sent to the bank or financial institution with which to sign the contract. However, in the case of the presence of an agreement, the bank or institution will process the request directly via an electronic connection.
According to the agreements signed by the National Institute of Social Security and who has adhered, the conditions to which the loans are subject are very advantageous, such as the interest rate and the administrative and management costs.
Regarding the calculation of the monthly installment, it should be remembered that this cannot exceed the threshold of the fifth of the salary, but neither can it be such as to fall below the poverty threshold established by current legislation.
In the case of small loans, the times vary from 45 days to two months, for direct or guaranteed multi-year loans we speak of a minimum of 60 days to a maximum of 90.
This period of time depends on the number of applications submitted, on the ranking and on the possibility of the Credit Fund to satisfy the financing. In the event that this fund is not sufficient, Social Institute has signed agreements with private companies for the provision of loans at advantageous conditions.