This also includes the disbursement of loans; therefore even if the wording regarding the loans remains Government Agency, it is in all respects a decentralized task to the National Social Security Institute, to which to submit the application and must accept it.
The small Government Agency loan is a loan that is granted to pensioners and civil servants at a subsidized and variable interest rate, to be repaid in 12 to 48 installments. Let’s see how to submit the request to access it with advantages and features.
Brief introduction to the small Government Agency loan
With the small Government Agency loan, pensioners and civil servants can take advantage of small sums of money to support unexpected and particularly urgent expenses.
In truth, with the approval of the 2011/201 “Save Italy” decree, the Government Agency has been absorbed by Social Institute, therefore the Social Institute Public Employees Management is still providing the loan. Public sector employees and pensioners registered in the “Unitary Management of Credit and Social Benefits” with at least 4 years of contributions paid, can take advantage of this credit product.
This type of loan is a loan in all respects, in fact it is subject to a highly subsidized variable interest rate. The debt is extinguished in 12,24,36 or 48 monthly installments.
Of course, each installment includes a principal and an interest portion. The amount varies according to the amount requested and the duration of the repayment, while the loan to be requested is bound by the amount of the salary or pension.
The Government Agency Small Loan is required to face small expenses, sometimes parents ask for it to help out the child who is preparing to start a family and needs a home.
The subsidized interest rate invites you to apply for the loan which is always more advantageous in the end than applying to a lender. The procedure is carried out more easily and due to the fact of reducing the installment directly from the salary or pension, no further guarantees are required since the paycheck and the pension is already a valid promise of payment.
What is the small Government Agency loan?
When we speak of the Small Government Agency Loan we mean a loan that is granted to public employees and pensioners. With the DM n. 45/2007 the government, making use of the silence-assent rule, extended the possibility of accessing subsidized loans to all public employees and pensioners, even if not registered with Government Agency.
If you intend to apply for funding and you are part of this category, you can find the forms by connecting to the official site of the Social Institute ex Government Agency, or by going personally to the provincial or territorial office of the Social Institute. Another valid and convenient alternative is to submit the application electronically through the “bank Portal”. By staying comfortably at home you can solve the practice by following all the necessary indications.
How does the Lite lender company work?
The civil servant who wants to apply for a small loan can also do it online. If you are familiar with using the computer, you can enter the reserved area of ”Lite lender Company”, an easy-to-use feature that allows you to send your application without going personally to the Social Institute offices. You simply have to follow the instructions suggested by the guided procedure, fill in the online form where some data is already contained and send the request electronically.
Before sending the application, it is possible to carry out some simulations defining the amount of the installment, the amount of the loan, the repayment duration.
Once you have chosen the solution that best suits your needs, forward your request. By entering your personal area you can monitor the condition of your practice and the progress.
The service is available at any time of the day.
To be able to access it, you must identify yourself through a PIN or alternatively the National Service Card is also valid. In order to obtain financing, you must indicate the current account where you get your pension or salary credited. In case you have difficulties in filling in, you can take advantage of an assistance service that will accompany you during the compilation of the application. If you have doubts about it, you can cancel the request, not only that but the software will also allow you to request the early repayment of the debt and view the status of the application. As soon as the Social Institute has accepted your request, it will proceed to credit the sum to the current account indicated by you.
Small loans ex Government Agency, who can apply for them
The request for a small loan ex Government Agency can only be submitted by public or retired employees of the Public Administration, registered for at least four years in the Unified Management of credit and social benefits, called the Credit Fund.
This is a service that operates for the management of credit and social benefits, for the civil servant the registration is automatic at the time of hiring.
Furthermore, it should be known that it provides for a cost of 0.35% operated as a deduction from the paycheck, which together with the small withdrawals made on all civil servants serves precisely to satisfy the needs of consumer credit and social benefits.
A different situation regards pensioners, for whom enrollment in the Credit Fund is not secure. If not originally envisaged at the time of hiring, the intention to join the Credit Fund must be indicated at the time of submission of the pension application.
This involves withdrawing 0.15% of the pension to meet its credit needs. In conclusion, to request the small loan you need:
- be a public employee;
- be a pensioner of the Public Administration;
- have been registered for 4 years in the Unified Management of credit and social benefits.
Who can access credit
While it may seem like an advantageous solution for those looking for a small loan, not everyone can access this credit solution. As previously mentioned, the loan application is addressed to employees and pensioners of the public administration . In particular, small Government Agency loans are available to all those who are registered in the “Public Employee Management”.
The gap also involves workers and pensioners employed in other public administrations who are registered with the Credit Fund and with Magistral Assistance.
Employees of the Poste Italiane Group and pensioners who belong to the categories indicated above and who can take out the loan by assigning one fifth of their pension can resort to the subsidized credit. It should also be noted that accessing small Government Agency loans entails risks if the beneficiary does not fulfill the payment of the installments.
The money taken must be returned and as with any other loan, when a default is detected, the name of the blessing is communicated to the Central Risks and written on the Register of Protestants. The data are kept for a period of between 12 and 36 months. Once the deadline has passed, the debtor’s name is automatically deleted from the list of bad payers and disappears permanently from the database.
The amount payable with the small loan ex Government Agency
As expressed in the name of the type of financing, we are talking about a small amount. There is the possibility of requesting a loan equivalent in minimum to a monthly salary or pension up to a maximum of four.
However, you can also request double the monthly payment, as long as there are no other deductions on the paycheck or pension.
The repayment of both small loans varies from a minimum of 12 months to a maximum of 48 months. For clarity we have:
- Small loan ex Government Agency one month : you can request from a minimum of one month to a maximum of four. Amortization is envisaged in a minimum of 12 installments and a maximum of 48;
- Small loan ex Government Agency double monthly : you can request a minimum of two months to a maximum of eight months, repayable within 48 installments.
It is obvious that in the case of the request for a small loan equivalent to twice the monthly or pension the monthly installment is higher.
The request for the small loan ex Government Agency
The request for the disbursement of the small loan ex Government Agency is different according to whether it is presented by a public worker or a pensioner from the Public Administration. In the first case, you need to fill in a specific form in the secretariat of your administration or connect to the Social Institute website, which has obviously absorbed the Government Agency website.
In the case of the pensioner, the request can be presented mainly online, but you can also contact the appropriate Contact Center, at 803164, or go to the patronage.
The small loan is a credit line that does not provide for the presentation of a reason for the request.
That is, it is sufficient to submit the application using the appropriate form, without attaching any documentation justifying the application as is the case for long-term loans ex Government Agency. Furthermore, it should be remembered that there must be no burdens on the salary or pension that prevent the possibility of disbursing the loan, like other loans.
Cost of the small loan ex Government Agency
The loans disbursed by the institution are characterized by a good convenience in terms of expense for the repayment, since the interest rate is low compared to market levels.
The Nominal Annual Rate is 4.25%, however it is not the only factor affecting the total cost of the loan. In fact, there are other items that entail an increase in the amount due to be repaid with depreciation. With the small loan are charged:
- 4.25% TAN ;
- administration and management costs equal to 0.5% of the total disbursed;
- deferral interest : these are interest calculated on the day the loan is disbursed. The amount usually depends on the date of the mandate;
- contribution to the Risk Fund, the amount of which is calculated according to the age category of the applicant. These percentages are indicated in a special attachment issued annually by Social Institute.
Remember that the monthly payment can be equivalent to a maximum of one fifth of the salary or pension. It must be sustainable, without seriously affecting the monthly income, causing problems for the applicant for the payment of the debt contracted with the institution.
Once the application for the small loan ex Government Agency has been submitted, on average, one to two months pass for the disbursement of the loan. Obviously this is a fairly long period of time, greater than the case of a request made to a banking or financial institution.
This depends on the load of applications submitted to the social security institution, on the ranking of the request submitted by the employee or pensioner and on the amount of funds available at the Social Institute.
In this regard, it should be remembered that, in the event that the loan cannot be disbursed due to lack of funds, it has signed agreements with private financial companies. In fact, in the event that the failure to disburse the loan is due to the Credit Fund, it is possible to obtain it almost at the same conditions from one of the financial companies indicated by Social Institute.
Different types of small Government Agency loans
As regards small Government Agency loans, we can distinguish three different types. The “Small Public Management Loan” is aimed at those who are members of the Fund and their families and allows you to receive small amounts to be repaid quickly with constant installments to be deducted from your salary or pension. The “Small Loan for Post Office Fund Management ” is a loan that affects the employees of the Italian Post Office or staff working for companies associated with the group.
Thanks to the assignment of the fifth of the salary they can access the credit by returning the sum to two, three, four or twelve months. Finally, the “Small Loan Gesione Magistrale” is reserved for all people who are members of the former ENAM who have been on the placement lists for at least two years or are in service. All three types of financing fall into the category of short-term loans with repayments to be made in a maximum of four years.
If the repayment takes place in a year, the sum granted corresponds to the average of a net monthly salary, if the repayment is biennial two months are taken into consideration, for three-year loans the disbursement is three net months, we pass to four monthly payments for reimbursements lasting four years. The advantage lies in the application of the interest rate which is much easier than the rate offered by the market. In addition, rates are applied that affect administration costs and a contribution from the risk provision.
Small loan for employees with fixed-term contracts
The possibility of applying for the small loan ex Government Agency is also possible to public employees subject to a fixed-term contract.
However, there are limitations, related to the type of contractual bond. In fact, it is not possible to request a loan longer than the period that will remain for the performance of one’s service, since it would be impossible to satisfy the debt amortization constraint. For example, if a year remains, the employee can apply for a loan which he can repay within the maximum time with the regular payment of 12 months.
Renewal of the small loan
You can proceed with the renewal of the small loan ex Government Agency, that is, to obtain a new liquidity. It is necessary that the minimum amortization time has elapsed, indicating in the regulations of the social security institution governing the loans.
The payment of at least 6 installments is required for biennial loans, 12 installments for biennial loans, 18 installments for three year loans and at least 24 installments for four year ones.
Early repayment of the debt is possible, but it is necessary to spend the time indicated on the request for renewal of the debt.
Death or transfer of the applicant
If the loan has been paid out regularly, in the case of the death of the civil servant or pensioner, the social security institution will not act against the heirs demanding the return of the due domma.
In this case the loan expired is considered. If the public employee is transferred to another administration, the same office will provide the necessary communication of the data to the new assignment.
Small Government Agency Loan: advances 2019
The small Government Agency loan regulation for 2019 should be almost unchanged. Like any loan, the one granted by Government Agency is also subject to interest.
The percentages vary according to the type of financing. The “Small Public Management Loans” are subject to the rate of 4.25%. A fixed interest rate of 5% and a rate of 3.50% for long-term loans are applied to “Small Loans for Post Office Fund Management”. An interest rate of 3.50% is calculated on the “Small Magistral Management Loans”.