Characteristics and requirements of financing
The Social Institute Public Employee Management (which includes all the former Government Agency services) periodically offers loans at subsidized conditions for state employees and pensioners. These are the so-called subsidized loans ex Government Agency, credit lines designed to meet needs of various kinds. But let’s see how to get simulation Government Agency loans.
In addition to loans granted by affiliated banks and financial institutions, in fact, members of the Public Employee Management can access loans disbursed directly by Social Institute, through a specific Credit Fund: the autonomous Unitary Management of credit and social services. These loans are divided into small loans and multi-year loans. Let’s see the characteristics in detail.
The small loan
The small loans fall into the category of personal loans and allow you to obtain, within the limits of the budget available to the Institute, sums in the order of several miles with which to cope with sudden and urgent needs. Workers and public pensioners enrolled in the unitary management of credit and social benefits have access to small Social Institute ex Government Agency loans.
Small loans can have an amortization plan of 12, 24, 36 or 48 monthly installments, consisting of a principal and an interest. The amount that can be financed varies according to the duration of the repayment: for each year it is possible to obtain an amount equal to two average net monthly salaries or pensions received by the applicant.
Amount that is reduced to an average monthly salary for each year of depreciation if the applicant has other on-going deductions in progress for assignments of the fifth. The repayment takes place by direct reduction of the installment from the salary and the interest rate is 4.25% (for all durations).
Multi-year loans, on the other hand, are granted only in the face of documented economic needs falling within the cases of the Social Institute loan regulation. these loans can only be obtained by employees and pensioners of the Public Employee Management who have been registered with the Social Institute credit fund for at least four years and have a retirement useful life of not less than four years. For members of the service, the presence of an indefinite-term contract is also required.
The loan can have a five – year or ten – year duration and the monthly installment cannot exceed the fifth part (20%) of the applicant’s salary or pension after tax. The tan is fixed at 3.50%.
We remind you that on the gross amount of subsidized loans ex Government Agency (both small and multi-year), in addition to the interest rate, a rate for administration costs equal to 0.50% and one for the risk provision premium, defined in based on the age of the applicant and the duration of the amortization plan. But let’s move on to the Government Agency simulation loans issue.
Calculate the installment with the Loan Handbook
Those who want to know the rates for the risk fund, the amount of the monthly installment and the financing net of expenses, can resort to the Social Institute Loan Handbook available on the Institute’s website through the path: “Home – Archive – Management of Public Employees Dedicated Area – Benefits – Credit – Loan Installment Calculation – Documentation ”. In this way it is possible to have a clear statement of all the ex Government Agency loans disbursed by Social Institute.
The Handbook is in fact composed of a series of tables that illustrate all the conditions applied to loans for public employees and pensioners paid directly by Social Institute.
For each type of loan (small annual loan, small two-year loan, etc., five-year loan, etc.), the Handbook considers a wide range of amounts payable, and consequently of monthly installments. The amounts of interest, the risk fund premium and other expenses applied to the loan are also indicated.
Still in the context of Government Agency simulation loans, we take into consideration the calculation of some amortization plans relating to Multi-year loans and Small loans. Using the tables in the Handbook, we consider, in our hypothetical scenario, an employee under the age of 59 who requests a ten-year multi-year loan of 10 thousand USD (gross amount).
The installment will be 98.63 USD, while administrative costs amount to 50.00, to which we must add the costs related to the Guarantee Fund (228.00). The net sum supplied to the beneficiary is 9,679.09 USD.
If the request is instead of 6 thousand USD, the installment is reduced to 59.18 USD. Administrative charges correspond to 30 USD and those of the Guarantee Fund are 136.80 USD. The net sum paid to the customer is $ 5,807.45.
We therefore consider a small biennial loan of 3 thousand USD, intended for an employee under 59. The installment in this case is 130.50 USD, against which we have administrative costs of 15 USD and guarantee fund charges of 10.50. The net sum supplied is 2,958.93 USD.
The same employee who instead wants to obtain a small four-year loan of 6 thousand USD, will have to support an installment of 135.93 USD. Administrative costs are 30 USD, Guarantee Fund expenses reach 72 USD. As for the net amount we will have 5,866.86 USD.
Alternatively, it is possible to carry out a simulation through the Government Agency simulation loan service active on the official Social Institute portal. To access it is necessary to follow the path: “Home – Services and Services – Management of public employees: simulation of calculation of small loans and multi-year loans”.
Once the Government Agency simulation loan application is reached, the user must choose one of the following calculation methods :
- Loan simulation;
- Simulation for ideal installment;
- Simulation for specific amount.
Then it will be sufficient to insert the requested data in the appropriate calculation form. In a few seconds the system will propose all the Social Institute ex Government Agency loans (both small and multi-year loans) accessible to the user, based on the data entered.
For each loan, the main characteristics of the amortization plan are indicated, from the amount payable to the monthly installment up to the various expenses applied to the loan.