Characteristics of loans for state employees
Despite the elimination of Government Agency, the services dedicated to employees and pensioners of the public administration have passed the responsibility of Social Institute. In fact, since January 2012 the Institute has been responsible for guaranteeing former Government Agency services and services, including Social Institute loans for civil servants, which are divided into small loans and long-term loans.
How the small loan works
Small loans are credit lines granted by Social Institute to public employees and pensioners registered in the unitary management of credit and social benefits, to respond to sudden and urgent needs.
These are therefore personal loans at favorable conditions which allow access to sums in the order of a few thousand USD. The loan can have a duration of 1, 2, 3 or years and for each year it is possible to obtain two average net monthly payments received by the beneficiary.
Amount that is reduced to an average monthly payment if the applicant has other deductions in progress for assignments of one fifth of the salary or pension. The interest rate is fixed at 4.25%.
As far as long-term loans are concerned, these loans are aimed at the purchase of goods or services, falling within the cases provided for by the Regulation. Funding can last 5 or 10 years.
Duration and financeable amount are defined according to the reason for which the loan is requested, as established by the Social Institute Loan Regulations. The interest rate is 3.50%, regardless of the repayment duration.
Administration expenses and Risk Fund premium
We remind you that on the gross amount of Social Institute loans for civil servants and pensioners, in addition to the interest rate, a rate for administration costs of 0.5% and one for the Social Institute Risk Fund also apply.
The latter is variable depending on the duration of the amortization plan and the age of the applicant. To know all the rates applied for the Risk Fund premium, you can view the relevant table at the end of the Social Institute Loan Regulation.
Who can get Social Institute funding for government employees
While for small loans, registration in the Unitary Management of credit and social benefits is sufficient, other requirements are required to access multi-year loans.
In addition to the registration to the Unified Management, in fact, it is also necessary to have four years of service usefulness for the pension and as many years of contributory payment to the aforementioned Fund. For those enrolled in service who require a multi-year loan, the presence of an indefinite-term employment contract is required.
However, even employees with a fixed-term contract can access multi-year loans, provided that they are extinguishable over the period of validity of the contract which must not be less than three years. In this case, however, the applicant is obliged to assign the TFR to guarantee the repayment of the loan.
Presentation of the application
But how to get Social Institute loans for civil servants ? Small loans and long-term loans can be requested exclusively online, by following the specific sending procedures available on the Social Institute.it portal.
Online application forms are available directly on the Social Institute website. To reach and download the modules it is necessary to follow the path: “Home – Services and Services – All modules – Management of Public Employees – Registered / Retired – Credit and social services”.
It should be noted that those enrolled in service activities can submit applications exclusively through the Administration they belong to, while the pensioners registered in the can submit their request autonomously by accessing the reserved area of the Social Institute portal.
How to calculate the loan
Those who wish to learn more about the conditions applied to Social Institute loans for civil servants before taking out a loan can take advantage of the special simulation service.
It is a web application that allows the user to choose between three calculation items :
- Loan Simulation;
- Loan Simulation for Specific Amount;
- Loan Simulation for Ideal Installment.
To access the service, simply connect to the official Social Institute portal and follow the path: “Home – Services and Services – Public Employee Management: simulation of the calculation of small loans and multi-year loans”.
On the official site of the Social Institute there is also a service for the personalized simulation of loans that allows you to make an Social Institute loan calculation online taking into account the data present in the Social Institute archives.
Loans affiliated with Social Institute
Up to now we have talked about the loans granted directly by Social Institute, public and state employees can also access Social Institute loans at subsidized conditions granted by banks and financial institutions affiliated with the institution.
These are the so-called secured multi-year loans. As the name suggests, multi-year secured loans have several characteristics in common with multi-year loans granted directly by Social Institute.
How the Government Agency loans in the convention work
Even in this case, in fact, the loan can have a five-year or ten-year duration. The amortization schedule is in monthly installments. The monthly payment cannot exceed the fifth part of the salary received by the applicant, net of social security withholdings.
Although the convention loans are granted by banks and financial institutions, Social Institute is committed to guaranteeing financing. In fact, the institution covers Social Institute loans for civil servants against the risks of:
- reduction of the salary received by the worker;
- termination of service without retirement;
- death of the beneficiary.