Social Institute Loans: What are they, who can access them and how to apply for them?

Starting in 2011, Government Agency closes its doors to open the way for Social Institute, the national institute of social security. As was the case for loans disbursed by the old entity, the disbursement of the capital belongs to the so-called lost fund.

This is an institution whose task is to recover the shares destined for the management sector of social and credit benefits i, which is fed by the shares of the members of the fund itself.

The Social Institute loans have the characteristic of being facilitated and of being dependent on a compulsory withdrawal which is carried out from the salaries of public employees who serve. The withdrawal involves the application of specific percentages:

  • 0.35 percent is taken from the salaries of civil servants;
  • 0.80 percent, which is added to 0.35 percent for master’s assistance;
  • 0.35 percent for the Italian post office groups;
  • 0.15% is taken from public pensioners.

To these sums that are withheld from remuneration, the sum that is generated by the interest to be applied to the Social Institute credit activities must be added.

The same subsidized loans can also be disbursed by other credit institutions, but only in the presence of specific agreements entered into with Social Institute.

What are the requirements to access Social Institute 2019 loans?

What are the requirements to access Social Institute 2019 loans?

The Social Institute loans are addressed not to all citizens of the Italian republic but only to workers or pensioners belonging to the public administration sector and their families. In particular, these loans are granted to:

  • those who are registered in the management of public employees;
  • retirees
  • pensioners and workers who are members of the credit fund and work for other administrations but who always fall into the civil servants category;
  • all those enrolled in master’s assistance;
  • employees of the post offices (Italian);
  • all pensioners who are part of a pension management with which they have taken out a loan by transferring the fifth.

The types of financing made available by Social Institute (former Government Agency loans) are numerous and diversified according to the amount requested and the purpose.

The most requested types are: multi-year direct loans or those that fall into the small loans category, secured loans and loans with the assignment of the fifth aimed at pensioners.

Small loans

Small loans

The small loans category includes three different categories: the small loan linked to public management, the postal loan and the master’s loan. All types are short-term forms of financing (one to four years).

The amount that can be requested is calculated on the basis of salary or pension so when the loan is of an annual duration it cannot exceed an average net monthly salary (of the pension or salary), in the case of a two-month two-month loan, three months if the funding is three years and so on.

The peculiarity of these types of loans is that the annual rate applied is more favorable than that which is actually applied on the market. However, there is the application of a percentage that is paid for the management of expenses and one for the provision of risks.
We know more closely the various types of loans that can be given.

The small loan pertaining to the so-called public management was created to meet the family needs of those who are registered in the fund, allowing them to receive small sums to be repaid through installments that are deducted directly from the pension or salary and that are returned in short term.

Loans for the management of postal funds is obviously a service dedicated to those who are part of the Italian postal group and the other companies associated with them. The requested capital is repaid on the basis of the mechanism of the transfer of the fifth. The loan term can vary from a minimum of one year to a maximum of four years.

While for the former members of the Enam institute the so-called small master loan has been designed which can be requested by subjects who have been in service or who have been put to rest for at least two years.

Multi-year loans

Multi-year loans

Multi-year loans (formerly Government Agency) now transferred to Social Institute are another category of financing that the institution can provide. Also, in this case, we have a subdivision carried out on the basis of the management (for example, public, masterful, of the post) to which the subjects belong.

Unlike small loans, multi-year loans allow access to much more considerable capital financing.

However, the application is accepted only in the case of certain needs. To obtain this financing, therefore, the applicant must provide Social Institute with detailed documentation demonstrating the need for the loan and any documentation demonstrating the expense to be faced.

This category of loans can only be requested by citizens hired on permanent contracts who must respond to certified family or personal needs.

Long-term loans linked to the management of postal funds can have a five-year or ten-year duration and can be disbursed only within the limits of the amount that can be transferred through the retention of the fifth on the salary. The purposes, in this case, must be those that the regulation expressly provides for such as serious diseases.

Among the long-term loans there are also the so-called secured ones through which Social Institute covers certain risk cases such as: the death of the member before the assignment has been completed, the cessation from work without the right to a pension and finally the cases in which the loan applicant’s salary is reduced.

Their duration can vary from a minimum of five years to a maximum of ten years.

How to apply for a loan to Social Institute?

How to apply for a loan to Social Institute?

The procedure to perform to apply for a loan to Social Institute is different according to the type of financing you intend to apply for. Obviously the first limit encountered is the institution’s financial availability.

Each year the institute’s budget is drawn up to determine the amount of sums that can be allocated to the disbursement of loans.

It is then necessary to download from the Social Institute website. Print and fill in the form and send it to the competent territorial office. Some questions provide for the possibility of being sent electronically and not through mail services.

It is then necessary to present to Social Institute all the documents that are requested in addition to the form which can be paper or electronic. In fact, the documentation varies according to the type of credit requested.

Social Institute interest rates

As with any loan, the loans granted by Social Institute are also subject to the application of interest rates. They range from 1.5 percentage points for master’s management to 4.24 percentage points applied to loans granted to members of master’s management.

What happens if the loan is not repaid?

Being a loan, the sum disbursed by Social Institute as capital must be repaid on the basis of what is determined in the contract. If the borrower does not return the sums on the basis of the agreed installment distribution, he will be entered in the register of protesters for failure to return the amount.

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