Government Agency Loan, Guide: How It Works and What It Offers
Government Agency loan: what it is
The Government Agency loan is a resource that allows public employees and pensioners to receive liquidity at subsidized rates. It is declined in various loans, able to respond to numerous needs. But what are the characteristics of the Government Agency loan, why choose it and to whom is it addressed? Here are all the answers you are looking for.
The Government Agency loan is actually offered by Social Institute, given that the National Institute of Social Security and Assistance for Public Administration Employees has been abolished. Its functions have passed to Social Institute, which has set up Public Employee Management.
In reality there is not a single Government Agency loan, but several credit lines designed for the different needs of the former Government Agency members. So let’s see what are the main opportunities to access credit.
Small Government Agency Social Institute loan
One of the most interesting resources is undoubtedly the Small Social Institute loan ex Government Agency. What is it about? It is a product that ensures liquidity without having to indicate the reason behind the request and not even having to attach to the documentation relating to the expenses.
The Small Loan is a solution for incurring rather small unexpected expenses. The beneficiaries are public employees and pensioners registered in the unitary management of credit and social benefits.
The loan amount starts from a minimum of one month, but eight months can be reached, intended as the beneficiary’s salary or pension. The value of the loan is to be related to the duration: 12, 24, 36 or 48 months.
The interest rate is 4.25%, to which administration costs (0.50%) and risk provision premium are added.
Multi-year Government Agency Social Institute loans at 3.50%
Another interesting option in the context of the Government Agency Social Institute loan is the multi-year direct loans. Products that allow you to receive high amounts but in compliance with the purposes set out in the Social Institute Regulation. Expenses must be documented.
Multi-year direct loans provide for a repayment on the assignment of the fifth. This means that the installment cannot exceed 1/5 of the net monthly allowance.
As regards the duration, the loan proposes five-year or ten-year repayment plans (60 or 120 monthly installments).
The interest rate is 3.50%. As for the Small loan, administration costs (0.50%) and risk fund premium must be added.
Government Agency Social Institute guaranteed multi-year loans: what it is
Another valid solution is represented by long-term guaranteed loans. These are not provided by Social Institute but by affiliated banks and financial companies.
The pension fund covers certain risks:
- death of the member before the end of the refund;
- end of service without pension entitlement;
- salary contraction.