Thanks to Government Agency loans with assignment of one fifth, workers and public pensioners can obtain credit at subsidized rates. But what are these loans, how do they work, what rates do they offer and above all how to request them? Let’s review all the answers.
Government Agency loans: how the assignment of the fifth works
The Government Agency Loans with assignment of the fifth are actually loans granted by Social Institute, given that Government Agency was abolished at the beginning of 2012. In fact, Social Institute is the new reference social security institution for public workers and pensioners.
Loans on assignment of the fifth involve an automatic repayment process, characterized by an installment that cannot exceed the maximum limit of 1/5 of the value of the monthly allowance, intended as a salary or pension.
Multi-year Government Agency loans and secured loans
What are Government Agency loans with assignment of the fifth? This category includes two types of products, direct multi-year loans and multi-year guaranteed loans. Direct multi-year courses are provided only for personal needs that fall within the purposes set out in the Social Institute Regulation (many options are covered, from car purchase to purchase of the first home).
The beneficiaries are members of the Unified Management of credit and social benefits who have:
- at least four years of service seniority;
- at least four years of contributions paid to the Unified Management;
- open-ended or fixed-term contract lasting at least three years.
Throughout the repayment period, the employment contract must be valid and the severance indemnity must be provided as a guarantee of reimbursement (for temporary workers).
Government Agency 2017 loan rates
The options in terms of duration are two: five-year or ten-year, we are talking about 60 or 120 monthly installments. As far as the rate is concerned, we find an annual nominal rate which corresponds to 3.50%. The beneficiary will also have to bear administrative costs, for 0.50%, and risk fund premium.
The request for funding must be sent using the online services of the Social Institute portal, in particular the service ” Multi-year Loans web applications ” will be used.
If the application is sent by workers on duty, it must be sent in collaboration with the reference administration. If, on the other hand, the applicant is a pensioner, the request must be sent directly using the reserved area of the Social Institute website (possession of the PIN issued by the social security institution is essential).
Secured multi-year loans: what they offer
The multi-year guaranteed loans are not granted by Social Institute but by banks or financial institutions that have defined an agreement with the social security institution. Therefore, the lending institutions determine the interest rate applied to the product.
Also in this case we are talking about Government Agency loans with assignment of the fifth with structured repayment in five or ten years. The applicant must provide the application in four copies to the reference administration.
Together with the application, a medical certificate of healthy physical constitution will be attached.