Loans for Government Agency state employees on assignment of the fifth
State employees enjoy a facilitated channel for access to credit thanks to the subsidized loans provided by Social Institute. With the elimination of the Government Agency (defined by the Save Italy decree passed by the Monti government) all the practices provided towards employees and pensioners of the Public Administration have passed under the responsibility of the Social Institute Public Employee Management.
Among these we find ex Government Agency loans, credit lines at special conditions which can be disbursed directly by Social Institute or by credit institutions affiliated with the Institute. Loans granted by the institution through the Social Institute credit fund (the unitary management of credit and social benefits) are called direct, while those granted by banks and financial institutions under the convention are called guaranteed loans.
Small loans for state employees
Social Institute ex Government Agency loans are divided into small loans and long-term loans. Small loans are loans granted by Social Institute to employees and pensioners of the Public Employee Management registered with the Social Institute credit fund to meet sudden and urgent economic needs.
The amortization plan has a constant installment and can last 1, 2, 3 or 4 years. The interest rate is fixed for the entire repayment term at 4.25% and the amount that can be financed varies according to the duration of the loan and the salary received by the applicant. For each repayment year, the applicant can obtain a sum equal to two average net monthly payments received. Amount which, in the case of other sales in progress, is reduced to one monthly salary for each year of the duration of the loan.
The repayment of the credit takes place by assigning a fifth of the salary or pension. The maximum amount of the installment cannot exceed the fifth part (20%) of the applicant’s salary or pension after tax.
Loans for state employees for the purchase of goods and services: multi-year loans
We then find the multi-year loans, which unlike the small loans can be granted both by Social Institute and by institutions in agreement. In the latter case, the social security institution undertakes only to guarantee the credit against the risk of reduced wages, loss of job without right to retirement and death of the debtor.
Furthermore, on the basis of the agreements signed with Social Institute, the credit institutions undertake to apply lower interest rates to the loans than the market averages. While small loans fall into the category of personal loans, multi-year loans are loans aimed at the purchase of goods or services.
Precisely for this reason, Social Institute issues direct multi-year loans only in the face of documented needs falling within the cases provided for by the Social Institute Loan Regulation. The duration (which can be five or ten years ) and the loanable amount of the loan are defined on the basis of the reason for which the loan is requested, as established by the Loan Regulations. The tan is fixed at 3.50%.
Only pensioners and employees of the Public Employee Management registered for at least four years with the Social Institute Credit Fund with a length of service useful to the pension of not less than four years can access direct multi-year loans. For members of the service, the presence of an indefinite-term employment contract is required.