What is and who can apply for a small Government agency loan
Are you a civil servant or a former civil servant and you need a small sum of money quickly? The Government agency Small Loan can be a cheap and easy solution. Here are the features and how to get it.
The Government agency is the social security institution for employees of the Public Administration and despite having been incorporated, with the 2011 financial maneuver, into the INPS (National Institute of Social Security) continues to maintain for public and former employees of the special and distinct prerogatives compared to those granted to employees of the private sector. Among these is the Government agency Small Loan which allows you to receive small sums of money, destined in most cases to resolve unexpected or urgent expenses. The same is governed by Decree Law 201 of 6 December 2011, subsequently converted into Law No. 214 of 2011. Among the advantages of this type of disbursement there is the possibility of obtaining money also with other ongoing loans.
The first question to answer is who can apply for a small Government agency loan
The Government agency Small Loan is reserved for civil servants and pensioners who have had a public employment relationship and are registered in the Unitary Management of credit and social benefits.
The procedure is characterized by slenderness, in fact the methods for being able to request these small sums differ according to whether the public employment relationship is still ongoing, or is terminated as it is a retired employee. In the first case, the form filled in in its entirety, downloadable from the INPS website in the section dedicated to civil servants, must be delivered to the home administration which will handle the forwarding to the competent Provincial or Territorial Office. In the second case, the application must be sent electronically.
Since these are small Government agency loans, as for most personal loans, it is not necessary to indicate the reason for the request or document the same, therefore it can be asked for any reason, even simply to buy the children’s bedroom or to take a holiday, moreover no medical certificate is required.
What amounts can be requested through the Government agency Small Loan
The amounts to be requested are strictly related to the debt amortization plan, they are also related to the presence of other payroll withholdings. It is established that the duration of the Government agency Small Loan can be 12, 24, 36 or 48 months. In the event of an annual duration, the maximum amount that can be requested is equal to the average amount of two net monthly payments, the amount is reduced to one monthly in the event that other deductions are already in progress on the salary or pension, such as the transfer of the fifth or other secured loans. For pensioners, the limit remains on not being able to overcome deductions of more than one fifth of the monthly treatment, a limit applied to all types of amortization plan.
If the loan must be repaid in 24 monthly installments, the amounts are double compared to the previous ones and therefore the equivalent of 4 months of average salary or pension, or 2 months if there are other deductions in progress.
The criterion for determining the amounts that can be disbursed for loans to be repaid in 36 and 48 months is proportional to that already seen, therefore for a three-year amortization plan an amount equal to six months or three months can be obtained based on being there or less other on-going deductions. For a loan to be repaid in 48 months, on the other hand, a sum equal to 8 net monthly payments or 4 net monthly payments can be obtained.
Also withdrawing the sums is very simple because once the funding request has been accepted, the money will be paid directly into the postal or bank account indicated by the applicant, or they can be withdrawn in cash at the Government agency Cashier Bank.
The reimbursement of the sums paid, however, takes place with deductions on the paycheck and therefore without particular charges for the debtor who will not have to fill in bulletins or queue.
Government agency Small Loan Interest Rate
At this point it is important to talk about the interest rate applied to the small Government agency loan. In reality, simply talking about the interest rate is an understatement, it is more appropriate to talk about the cost of financing which consists of three items:
- Interest rate (TAN), equal to 4.25% per annum, lower than the personal loan proposals usually disbursed;
- administration costs corresponding to 0.50%;
- finally the risk provision premium, an insurance policy whose value depends on the amount of the loan and whose amounts can be found on the regulation downloadable on the INPS website, in the same section where the application forms are located.
Government agency Small Loan renewal method
Finally, some peculiarities of the small Government agency loan remain to be explained. In particular, after an initial amortization period, corresponding to half of the initial term, it is possible to request renewal, for example if the initial amortization plan is 24 months, this benefit can be obtained after paying 12 installments.
Guarantees of the Small Loan Government agency
Government agency small loan: whoever asks for a loan often fears that, in the event of an accident, the same could fall on the family who may not be able to face the repayment of the same, with the Government agency loan this does not happen because if the beneficiary dies or in the event of permanent disability due to service or contracted during the repayment period of the credit obtained, the sums still to be paid are not due by the heirs. Unlike the case of transfer to another Administration, in this case the office which up to that moment has proceeded to withhold the sums to be repaid, will have to communicate to the new entity with which the employment relationship exists all the details of the small Government agency loan and therefore this will continue the relationship.