What is the Small government agency loan
Small government agency loan: as can be seen from the term, it is a loan that is granted to those entitled who request it and can be repaid in 12, 24, 36 or 48 installments consisting of a portion that corresponds to the capital and one that corresponds to the interests.
The government agency provides the small loan without asking for justification regarding the reasons for the request, so it is not necessary to attach any type of documentation to the application and can be used according to your needs.
The requested amount can therefore be paid in cash at the bank of the Institute or, if you prefer, it can be credited to your bank or postal account.
How to get a small government agency loan
To obtain the “Small government agency loan”, one proceeds in two different ways according to the category to which it belongs. In this case, if you are part of the members still in service, you will have to download the appropriate application form from the INPS website in the section dedicated to the Management of Public Employees, under the former government agency, small loan item, which must be completed in all its parts. The application must then be submitted to the home administration which will then take care of transmitting it electronically to the competent office.
Retired members, on the other hand, can only submit the application electronically. By filling in all the required fields, you can send the application directly to the former government agency, the loan will then be disbursed in the next stage according to the accreditation methods indicated.
What amounts can be requested
The amounts of the small government agency loan vary according to the applicant’s remuneration, we see the different cases:
If applying for an annual loan, the amount must be equal to 1 net average monthly salary or pension. The requested sum will be repaid in 12 monthly installments. However, it is possible to request a sum equal to 2 monthly payments, if there are no ongoing deductions for assignments of the fifth of the salary or pension. As regards pensioners, the limit of the fifth transferable remains valid.
In the case of a two-year loan, an amount equal to 2 net average monthly salaries or pensions may be requested. In this case, the sum received must be returned in 24 monthly installments. Also in this case, up to 4 monthly payments can be requested, with the maximum limit of the fifth transferable for the pensioners and if there are no other retentions in progress for assignments of the fifth of the salary.
For a three-year loan, an amount equal to 3 net average monthly salaries or pensions may be requested. This amount must be repaid in 36 monthly installments. In the event that the person making the request has no other deductions in progress for assignments of the fifth, he may request up to 6 monthly payments, for pensioners the limit of the fifth transferable remains.
If you apply for a four-year loan, the amount that can be requested is equal to 4 net average monthly salary or pension. The loan must be repaid in 48 monthly installments. Up to 8 monthly payments may be requested if there are no other deductions in progress for assignments of the fifth. For pensioners, the limit of the fifth transferable applies.
Interest and expenses
As with all loans, although this has a subsidized rate compared to what the loan market is, the government agency on the loan provides for interest, a rate for the provision for risks and one for administration costs. Here is the detail:
- the nominal annual interest rate is 4.25%
- administration fees are 0.50%
- the rates of the risk provision are variable, the full prospectus is reported in the loan regulations which can be consulted on the INPS website in the Public Employees Management section ex government agency loan loan.
Here are some particular cases foreseen concerning the small government agency loan.
The remaining debt of the loan granted is not required in the event of the borrower’s death or if a permanent or absolute disability of the employee caused by the service or contracted to service occurs.
- If the employee decides to switch to a different Administration, it will be the office that has taken care to withhold the monthly withholdings to inform the new office about the data of the government agency for the small loan in progress. In this way, the monthly withholding tax can continue.
- Those who have the need, can request the renewal of the small loan once the minimum amortization period of the requested loan has elapsed, which corresponds to half the effective duration of each plan. For example, as regards the annual amortization plan, at least 6 months corresponding to 6 paid installments must have passed to request a renewal of the loan.
This type of financing is convenient compared to the financial proposals of banks or other credit institutions. The fixed annual nominal interest rate makes it highly competitive and, for those who belong to the categories that can request it, it can be the perfect solution for a sudden expense or for any need for small liquidity.