Small social security 2020 Loan: who is it for?
As we mentioned in the introductory paragraph, the small social security loan is aimed at civil servants and retirees, in detail, those who have a permanent contract, who have been in the “workforce” for at least 4 years and who have paid the relative contributions to the same Unified Management.
In addition to active employees, retired former civil servants can also apply for the small social security loan.
How to apply for the Small Loan
Request via downloadable form : to submit the request for the small social security loan, it is necessary to fill in the forms provided by the institute (HERE and download the form), once completed, these must be delivered to the office of competence / belonging which will forward everything for electronically.
Otherwise if you are unable or find it difficult to use the site, you can go directly to the social security offices to which you belong and manage the file with the support of the staff made available by the institution.
Online loan application: for all those who are familiar with the computer, it is possible to apply for the loan directly from the social security website. Below we indicate the link to the page which explains how the loan works, on the right there is the button with the words “Access the Service”.
Documents needed to apply for the loan online:
- make sure you have your PIN or national service card. The pin is the 5-digit numeric code that is released after having made the identification procedure;
- the salary must be credited to a postal or bank account where the loan will later be credited,
To use the service you need to enter your private area with your login credentials, you will need to enter your tax code and PIN. Alternatively, the national services card can be used, or via SPID (unique digital identity).
Once you are logged in, the system offers several options, here are the main ones:
- perform simulations and then calculate the installment for the amount requested;
- apply for a small loan;
- monitor the progress of the practice.
After completing the funding request, an social security official will check all the parameters and, if necessary, will make the changes requested based on the latest position updates.
Any changes made may slightly modify the data obtained from the simulation made on the site, with the consequent variation of the amounts to be returned.
Small social security Loan: interest and management costs
To be calculated on the gross amounts, the interest required to obtain the small social security loan is 4.5% to which must be added a 0.50% withholding tax which is equivalent to a 5% APR. This percentage includes administration costs and the portion intended to cover the risk provision. These sums are automatically withheld when the loan is disbursed.
For more detailed information, you can view the pdf file (source of the article) made available by social security by clicking on the link below.
The small social security loans have 4 repayment methods, each of which allows you to request an amount equal to a total of monthly payments which vary as a consequence of the repayment timescales. Following the details:
- Small annual loan, repayable in twelve monthly installments. This loan includes an amount equal to an average monthly salary or pension received by the applicant;
- Small two-year loan, repayable in twenty-four monthly installments. In this case, the maximum amount that can be requested is an amount equal to the sum of four months;
- Small three-year loan, in this case the maximum amount that can be requested is equal to the sum of three months and is repayable in thirty-six installments;
- Small four-year loan, the monthly payments that can be requested as a loan are four and the repayment installments are forty-eight.
In the event that the applicant does not have other outstanding mortgages or assignments of the fifth of the salary, it is possible to request double the amounts from those mentioned above. In detail… the annual loan may be of 2 months, the biennial loan of 4 months, the triennial loan of 6 months, the four-year loan of 8 months.
Another determining factor for obtaining the loan lies in the clause that the loan cannot be longer than the
The small social security loans are simple to obtain, which is why they had in 2017 and are likely to have great success in 2020. Thanks to the facilitations made available by the institution, the interests are low and the installments to be paid monthly are easily sustainable.
If you need more information, you can consult the social security website, which also provides the forms to be filled in to apply for funding.