How subsidized loans for public employees and pensioners work
Social Institute Government Agency loans: what are they and how do they work? These are loans reserved for public employees and pensioners with competitive rates. They allow to respond to many needs, which define the different refund conditions. Let’s examine all the main proposals.
Before describing the funding in detail, it is necessary to clarify an essential aspect of access to credit. The National Institute for Welfare and Assistance for Public Administration Employees has been abolished and its functions have passed to Social Institute.
The functions and activities, including credit, are now managed by the Social Institute Public Employees Management. For this reason we are talking about Social Institute Government Agency loans.
The small loan
The small loan is a loan that allows you to receive credit without having to submit any reason or even documentation on the expenses you want to incur.
Who are the beneficiaries of the Government Agency Social Institute Small Loan? This is a credit line addressed to public employees and pensioners enrolled in the unitary management of credit and social benefits.
The applicant can obtain a sum that corresponds to a minimum of one up to a maximum of eight net monthly payments. As regards the repayment process, the options are numerous: 12, 24, 36 or 48 months.
The interest rate applied is very competitive. We have a nominal annual rate of 4.25%, however administrative costs (0.50%) and risk provision premium must be added to this.
Characteristics of multi-year loans
Direct multi-year loans, on the other hand, provide for the submission of expense documentation. The request must also comply with the purposes set out in the Social Institute Regulation.
In general, the purposes concern personal or family needs. The categories of beneficiaries are the same as for the small loan.
In the case of employees, it is preferable to have a permanent contract. For fixed- term workers, the employment contract must be active for the entire repayment period of the loan. The severance indemnity must be provided as a guarantee of reimbursement.
Multi-year direct loans are based on the assignment of the fifth, which means the installment cannot exceed 1/5 of the beneficiary’s monthly allowance.
The options regarding duration are two: five-year and ten-year loans (60 or 120 monthly installments).
Another key element is the interest rate. There is a nominal annual rate corresponding to 3.50%. However, administration costs (0.50%) and risk provision premium must be added to this.
How to submit the application
Both for small loans and for multi-year Social Institute Government Agency loans it is necessary to submit the credit request electronically. The application forms are available, in Pdf format, on the official Social Institute website.
To download them, you need to connect to the home page of the Social Institute website and follow the path : “Services and Services – All modules – Management of Public Employees – Registered / Retired – Credit and social benefits”.
Once downloaded and filled in, the application form must be sent to Social Institute, with all the documents requested attached according to the type of financing. The application is sent via the Social Institute website for pensioners, while civil servants in service activities must contact the Administration they belong to.