Also for 2017/18 Social Institute, the National Institute for Social Security, offers loans to all public employees at subsidized rates, with liquidity coming from the Social Institute credit fund itself or from agreements with some banking institutions. Two, in particular, the types of credit that public employees can take advantage of. Let’s find out what they are, together with the requirements that are needed to obtain a loan.
Small loan and multi-year loans
Social Institute loans to civil servants can be of two types: small loans or multi-year loans. A small Social Institute loan, however, in turn can be annual, biennial and so on, up to a limit of four years.
- The small Social Institute loan is paid to civil servants (or pensioners) who have to incur small unexpected expenses. An annual loan of this type corresponds to the payment of an average net monthly salary, to be repaid in twelve months, with installments and interest rates equal to 4.25% per year (for administration costs and the risk provision rate can consult the handbook made available by the institution). A two-year loan corresponds instead to the disbursement of two monthly salaries to be repaid in twenty-four months and so on, up to the small four-year loan in 48 months (see also Small Government Agency loan). However, it should be stressed that if the civil servant does not present any other withholding on the salary (and consequently the small Social Institute loan represents the only form of credit required) he can even request double the sum of the salary (in this case an annual loan would amount two months, two years four months, three years six etc.).
- Multi-year loans are instead the most substantial loans that Social Institute provides to civil servants with certain requirements and particular eventualities (such as removals, maintenance work for the home, purchase of a car, illness) for a duration that ranges from five to ten years, repayable in installments ranging in number from 60 to 120 (see also Government Agency multi-year loan). In this context, care must be taken that the installment does not exceed one fifth of the net salary amount, then calculating in the repayment an interest rate of 3.50% and a rate for administrative expenses of 0.50%.
The requirements to be met
To apply for an Social Institute loan, civil servants or pensioners will have to meet certain requirements that vary according to the type of credit they want to use. For the small loan, no special features are needed, just being public employees enrolled in the unitary management of credit and social benefits and submitting an application through appropriate forms available in all Social Institute offices (retirees have the obligation to complete the online application).
Different is the matter for long-term loans, for which certain requisites of the applicant are required: in addition to enrolling in the unitary management of credit and social benefits, you must have at least four years of service as a public employee with a permanent contract and at least four years of contributions payments. For those who have a fixed-term contract, these other variants must be considered: first of all, the contract must not have a duration of less than three years, and secondly, the worker must make his TFR available as a guarantee of obligation.