All the benefits of the Social Institute Ex Government Agency offer Direct and Guaranteed Long-term Loans
Social Institute ex Government Agency multi-year loans, what do they offer? They are products on sale of the fifth that allow you to receive credit for many purposes. Find out now what they are, how they work and what the access requirements are.
Subsidized loans granted by Social Institute
Government Agency no longer exists, for this reason we talk about Social Institute ex Government Agency multi-year loans. The reference point is therefore represented by the National Social Security Institute which provides the credit provided (with the exception of guaranteed long-term loans).
To be able to enter the Social Institute ex Government Agency multi-year loan offer, further clarification is essential. There are two long-term loans: direct and guaranteed loans. The former are granted by Social Institute, while the guaranteed ones are disbursed by banks and financial companies that have entered into the Social Institute agreement.
Direct multi-year loans
We begin our study with the multi-year direct loans for public management. Who can get them? They are suitable for public employees and pensioners enrolled in the unitary management of credit and social benefits.
They can be requested for the needs specified by the Social Institute regulation. These are mainly personal needs : from the purchase of the main house to the car.
The long-term direct contracts are based on the assignment of the fifth, the installment therefore cannot exceed the maximum limit of 1/5 of salary or pension.
Who can get funding
The applicant must be able to count on at least four years of service and four years of contributions paid to the Unified Management.
It is preferable that the user has a permanent contract. For those who work on fixed-term contracts, they must bear in mind additional special requirements.
The worker, hired with a contract with a duration of at least three years, must confer the TFR as a guarantee of reimbursement. Not only. During the refund, the employment contract must be valid.
There are two options for the Social Institute ex Government Agency multi-year loan term: five or ten years, which translate into 60 or 120 monthly installments. The rate is really competitive, in fact we have a nominal annual rate corresponding to 3.50%.
Administrative charges (0.50%) and the provision for risks also affect the convenience of the loan. The latter is defined based on the duration of the loan amortization plan and the age of the applicant. To find out all the rates applied to the Social Institute Risk Fund premium, simply consult the appropriate table, present at the end of the Social Institute Loan Regulation.
Government Agency secured multi-year loans: what do they offer? The other product that falls into the multi-year loan segment is made up of Multi-year Loans Guaranteed for Public Management.
In this case, Social Institute does not pay the loan but takes care of guaranteeing it against a series of risks:
- death of the member before the end of the funding;
- termination of service without pension entitlement;
- salary contraction.
As with direct multi-year loans, repayment takes place in five or ten years. The loan amortization plan is carried out in monthly installments. The amount of the interest rate is variable and is established by the lending institution.
In addition to the interest rate, the following expenses are also charged on the gross amount of the benefit:
- administration fees charged by the lender;
- a rate for Social Institute administration costs (0.50%);
- a compensatory premium to be paid to Social Institute for the risk of insolvency.
The latter premium is 1.5% for five-year loans and 3% for ten-year loans. The loan application must be submitted to the home administration, in four copies.
In the event that the borrower is left with a shorter period of service than that foreseen for the duration of the repayment plan, the duration of the loan cannot exceed the period between the granting of the loan and the date for retirement.