Multi-year direct government agency / social security loans
Multi-year direct government agency loans are intended for pensioners and civil servants who are registered in the unitary management of credit and social benefits.
They can be requested to face family and / or personal needs and can have a duration of five years or ten years (in the first case they will be returned in 60 monthly installments, while in the second case they will be returned in 120 monthly installments).
To access the loan, it is necessary that the members of the Unitary Management of Credit and Social Benefits have at least four years of retirement useful for the pension and have paid contributions to the Management for no less than four years; for those enrolled in service, however, the indispensable requirement is an open-ended employment contract.
How to get direct loans
To obtain direct government agency multi-year loans, it is necessary to send the application electronically through the social security Multi-year Loans Web Questions service, as established by Presidential Determination number 95 of 2012, attaching the various documents required.
Those enrolled in the service can submit applications through the administration they belong to, while pensioners must refer to the Reserved Area of the social security website using their PIN. The attached documentation must certify the state of need, a medical certificate of sound physical constitution and any expenditure.
Costs and expenses of direct loans
The transferable portion must be equal to or less than one fifth of the pension or salary. An interest rate on the service is applied which is equal to 3.50% per annum, to which must be added a 0.50% for administration costs. The loan is repaid from the second month following the month in which the loan is granted.
A pending transfer cannot be renewed if a certain period of time has not elapsed since the transfer was initiated: this period is four years for ten-year loans and two years for five-year loans.
In any case, a ten-year loan can be requested before two years have elapsed since the start of a five-year loan, but on condition that the applicant has not in the past used other ten-year loans.
In the presence of a new concession, the one envisaged is extinguished in advance, while the quota of the compensatory premium is returned with a compensation with the premium due with respect to the new operation. At any time, however, it is possible to resort to the early repayment of the social security government agency multi-year loan by paying the residual debt : in this way, the applicant obtains the portion of the provision for risks relating to the “eliminated” period.
Guaranteed multi-year government agency / social security loans
The guaranteed government agency multi-year loans are loans insured by the social security for Public Employees Management against a series of risks, which include the reduction of the salary, the death of the member before the extinction of the assignment or the termination of the service which involves the absence of the right to pension.
These loans, like direct loans, can have a five-year or ten-year duration and are characterized by the same repayment methods (60 installments or 120 installments as appropriate), unless the applicant is left with a shorter period of service for the obtaining the right to a pension. In this circumstance, it is not possible to apply for a loan of longer duration than the period between the granting of the loan and retirement
Loans guaranteed by social security are paid off with salary deductions made every month up to one fifth of the monthly salary.
How to get secured loans
To obtain the government agency multi-year loans (today social security) guaranteed by social security, it is necessary to submit the relative application (multi-year guaranteed loan application form) to the administration of belonging in four different copies referring to the specific models made available by the institution: ‘you need to attach any type of expense voucher or other documentation.
The application must be accompanied by a medical certificate of sound physical constitution, which can be provided by a doctor appointed by the same administration, by a doctor on duty or by a doctor of the ASL, but in any case no later than 45 days before.
The application for the social security multi-year loan is sent by the administration of belonging to the lender, who also receives the demonstration declaration of the salary and returns the documentation to the administration after completing the contract proposal, which is sent to the social security Management of Public Employees .
How secured loans are calculated
The calculation of the guaranteed government agency long-term loans is made by multiplying the monthly installment – which corresponds to the transferable portion – by the number of monthly installments according to the duration of the loan. Net of social security withholdings, the transferable portion cannot be greater than one fifth of the salary, while the measure of the interest rate changes as it is decided by the financial companies and credit institutions. The latter are required to indicate the APR in a clear and transparent manner: otherwise, the application is rejected.
It should be taken into account that the administration fees and interest that are applied by the credit institutions, as well as a compensatory premium for the risk of insolvency in favor of social security, are included in the gross amount of the concession. This premium corresponds to 3% for 10-year loans and 1.5% for 5-year loans.
Finally, the concession also bears a sum relating to administration costs, equal to 0.50%. In the event that the applicant can be placed at rest over the age of 65, the compensatory premium measure is increased by 4% for 10-year loans and 2% for 5-year loans.
government agency multi-year loans (today social security), therefore, are loans that differ from the small social security / government agency loan and are intended for civil servants and retirees who guarantee the possibility of facing small or large expenses in a simplified way. The social security website is the portal to refer to for more detailed forms and information.