Social Security public sector loans at subsidized interest rates
Government Agency loans are a form of access to credit on special terms dedicated to public employees and pensioners. These are products granted by Social Security through a special credit fund, the Unitary Management of credit and social benefits. The strong point of the offer is the Social Security loan rates for civil servants, well below the market averages.
Being granted by the social security institution and not by banks and financial companies, as happens with traditional loans on the financing market. But what are the rates applied to Government Agency loans? To answer this question, a distinction must be made between small loans and multi-annual loans. Products that together make up the complete offer of Government Agency subsidized loans.
Government Agency 2018 loan conditions
Small loans are loans granted by Social Security to employees and retirees who face sudden expenses. They allow you to obtain sums up to a maximum of eight months of the applicant’s salary or pension. The repayment takes place with an amortization plan that extends for a period ranging from a minimum of 12 months to a maximum 48 months.
Multi-year loans, on the other hand, are designed for those who face significant costs, such as renovating their home or buying a car. The maximum amount that can be financed is defined on the basis of the income received by the applicant, taking into account the limits imposed by the Government Agency Loan Regulations. The repayment takes place with an amortization plan that extends over a period that can be 5 or 10 years.
Now that we have seen the general conditions of the Government Agency loans, let’s move on to the question of the Social Security loans rates for civil servants. For small loans we have a fixed interest rate of 4.25% regardless of the duration of the loan and the amount financed. The same applies to long-term loans, for which however the interest rate is fixed at 3.5%.
Administrative costs are added to the Tan, defined with the application of a rate of 0.5%. The borrower is then faced with the payment of a premium for the Social Security Risk Fund. Prize that is defined on the basis of the value of the loan, the duration and age of the applicant.
Online loan installment calculation
Public employees or pensioners who wish to apply for Government Agency subsidized financing, can assess in detail the impact of Social Security public employee loan rates by carrying out an online simulation. In fact, on the official Social Security website there is a service that allows you to simulate the online loan.
The application in question, accessible to all users, does not require authentication with Pin Social Security. The procedure to follow is simple and intuitive. Once all the data have been entered in the calculation form, the system indicates in a few seconds the main conditions applied to the loan: rate, amount, installment and incidental costs.