Loan guide for retirees
Social Institute pensioners’ loans are produced on assignment of the fifth, or loans whose installment cannot exceed 1/5 of the pension treatment. The refund process involves automatic withholding from the monthly check.
Loans for Social Institute pensioners are divided into two categories : those granted directly by the social security institution and those granted by banks and finance companies. In this article we will see in detail what the characteristics of the loans are and how to request them.
Loans granted by banks
In the case of loans for Social Institute pensioners granted by banks or financial companies, it is up to the pensioner to select the financing that best suits his needs. Social Institute will then provide the bank or financial company with the installment provided for in the amortization plan.
The duration of the loan cannot exceed 10 years. As regards the constraints to be respected, we also have insurance coverage relating to the risk of retiree’s retirement.
Not all retirees are eligible for Social Institute pensioner loans. There are some treatments that are excluded, here are what they are:
- pensions and social allowances;
- civil disabilities;
- monthly allowances for disability pensioners;
- income support allowances;
- family allowances;
- pensions with joint ownership for the portion not attributable to the person requesting the assignment;
- exodus benefits.
The application procedures
What is the procedure to follow to get Social Institute pensioner loans? The pensioner is called first of all to have the communication of the transferability of the pension. This is a document that specifies the maximum value that the loan installment can take.
The process of requesting the transferable quota is quite simple. However, the applicant, or the pensioner, must report to Social Institute. The document must therefore be provided to the selected provider.
The pensioner can choose to define the financing with a bank or financial institution affiliated with Social Institute. In this case the loan application process is simplified.
In fact, the communication of the transferability of the pension will be requested directly from the bank to Social Institute.
Another non-secondary aspect inherent to the affiliated bodies is represented by interest rates, which are very competitive.
How to calculate the amount
The maximum amount of funding is defined in relation to the pension. The installment cannot in fact exceed 1/5 of the pension.
The pensioner must keep in mind, however, that the monthly allowance considered net of any tax and social security deductions is relevant.
The installment cannot compromise the size of the minimum pension, which is calculated every year.
The role of Social Institute
Those who intend to take out a loan with a credit institution affiliated with Social Institute, will enjoy a series of advantages. Social Institute will in fact carry out some checks on the bank or financial institution involved. Checks that guarantee a greater guarantee of transparency and convenience for the pensioner.
For example, the social security institution will ensure that all costs are indicated in the contract: from the preliminary investigation to the commissions. Not only. Social Institute also checks that the bank or financial institution chosen by the pensioner has all the legal requirements for granting loans on assignment of the fifth.
For the purposes of granting the loan, it is also essential that the rate applied (and indicated in the contract) is lower than the anti-usury threshold rate set periodically by law. The installment, on the other hand, must not exceed the fifth part (20%) of the net amount of the monthly pension.
Social Institute subsidized loans for pensioners 2017
Now that we have seen in detail the conditions applied to Social Institute pensioners’ loans granted by banks and finance companies, let’s move on to those granted directly by the Institute.
Before reviewing the conditions, however, it is necessary to specify that these loans are granted exclusively to public pensioners. In order to access credit, the pensioner must also be registered with a special Fund, the Unitary Management of credit and social benefits.
Having said this, let’s move on to Social Institute ex Government Agency loans at subsidized rates. They fall into two categories: small loans and multi-year loans. The former fall into the category of personal loans, and are therefore not related to the purchase of particular goods or services. Therefore, no particular expenditure documents must be submitted when applying.
We begin the question of the requirements with those foreseen for the small loans for pensioners Social Institute ex Government Agency. In this case, to obtain the credit it is sufficient to be a public pensioner registered in the aforementioned Social Institute Unit Management.
For long-term loans, on the other hand, there are various requirements to be met. Also in this case, enrollment in the Unitary Management is foreseen, but a minimum working seniority is also required. The applicant must in fact be able to have at least four years of service seniority useful for retirement purposes.
Not only. Social Institute ex Government Agency multi-year loans can only be obtained by those who also have a contribution contribution to the Unitary Management of not less than four years.
Amounts and refund
The small loans for pensioners Social Institute ex Government Agency allow access to relatively low sums. The amount that can be financed depends on the amount of the pension allowance received by the beneficiary and on the duration of the amortization plan.
In fact, for each year of duration it is possible to obtain a sum equal to a monthly pension. The funding can last from 12 to 48 months, and it is therefore possible to obtain:
- annual loans with an amount equal to a monthly pension;
- biennial loans with an amount equal to two months’ pension;
- three-year loans with an amount equal to three months’ pension;
- four-year loans with an amount equal to four months’ pension.
In the event that the applicant does not have other pension deductions in progress, it is also possible to request small loans for pensioners in two months (annual loans with an amount equal to two months, biennial loans with an amount equal to four months, etc.).
In any case, the amortization plan is in monthly installments and requires the application of an interest rate (Tan) equal to 4.25%. The rate of administration costs of 0.50% and a share for the payment of the Social Institute Risk Fund premium are also applied to the gross amount of the service.
The latter is defined on the basis of the age of the applicant and the duration of the loan. The relevant table can be consulted on the official Social Institute website.
Multiannual funding 2017
On the other hand, the issue for multi-year Social Institute ex Government Agency loans is different. Since these are targeted loans, the amount payable varies according to the expenditure you want to make. To give an example, for the purchase of the first house it is possible to obtain up to 150 thousand USD to be repaid in 10 years.
The duration can be 5 or 10 years, depending on the purpose. The rate is instead fixed at 3.5%. As for small loans, long-term loans are subject to administration costs and the premium for the Social Institute Risk Fund.