- December 12, 2019
- John Madrigal
- Comments Off on Government Agency Loans – Quick Online Request
Loans Government Agency 2018 affiliated, for employees and pensioners
The Government Agency periodically, on the basis of its budget availability, proposes loans on favorable terms, intended for members, pensioners or their families. The Government Agency loans after the absorption of the Entity by social security, are now managed by the social security itself, even if there have been no changes in the methods of disbursement and reasons. To date, in fact, the regulation applied to the small loan and long-term loans dates back to 2011.
Who can apply for Government Agency loans?
The loans disbursed directly by the Indap (five-year or ten-year direct multi-year loans) are financed with their own Credit Fund : the autonomous unitary management of credit and social services. In the case of both direct and indirect multi-year loans, a minimum duration of 4 years is also required for payments of the specific fund (it is reduced to two years for war maimed and disabled, or who obtains a medal for military valor), but this does not affect the amounts that may be requested, linked instead to the transferable portion (installment / income ratio at most equal to one fifth).
Membership of this Fund is mandatory for all Government Agency members, and optional for Government Agency pensioners (the application must be made at the time of submitting the application for retirement) or for public employees and retirees registered for social security purposes, other entities or institutions that are members of the Fund. Therefore, the categories of employees who can decide to join the Fund, and subsequently request the social security loans ex Government Agency, range from teachers to the armed forces and police, local government employees, ministerial offices, nurses, etc.
Subscribers, employees or pensioners who do not have the necessary qualifications to access the normal conditions of direct loans, will be able to resort to loans in agreement.
Differences between guaranteed and direct multi-year loans
In addition to the purposes for which they can be requested, the main difference lies in the rate applied. In fact, the interest rate for direct Government Agency loans is fixed at 3.5%, while for the guaranteed ones we must refer to the rates applied by the different banks.
The sending of the requested documents (such as self-certifications, family statuses, expense vouchers, etc.) remains ‘traditional’.
What types of Government Agency loans are still available?
The Government Agency therefore offers three types of loans:
- Small loan: this is a personal loan whose amount can be equal to 1, 2, 3, 4, 6, 8 months of your net salary for a duration of 1, 2, 3 or 4 years; no expense documentation is required, and can be renewed for a duration equal to half of the depreciation plan previously chosen.
- Direct multi-year loan: assignment of a fifth with a duration of 5 or 10 years; the cost documentation is required (for example between the purposes of the child’s birth, car purchase, marriage, restructuring, etc.).
- Guaranteed multi-year loan: assignment of a fifth with a duration of 5 or 10 years, granted by financial companies and affiliated credit institutions. The loan is guaranteed by the Government Agency against the following risks: – death of the member before the sale is settled; – termination of service without pension rights; – reduction of the salary of the transferor.
To these must obviously be added the mortgage, for which the purposes are much more limited than those required by the banks, but maintains very advantageous rates.
|Type of Loan||Interested||Loan duration||Loan cost||Administrative expenses|
|Small Loan Government Agency||Public employees and pensioners registered in the unitary management for credit and social services||12 months minimum
Max 48 months
|Direct Multi-year Loan||Public employees and pensioners registered in the unitary management for credit and social services||Min 60 months
Max 120 months
|Guaranteed Multi-year Loan||Subscribers to the unitary management for credit and social services||Min 60 months
Max 120 months
|Premium to cover insolvency risks
1.50% for five-year loans *
3.00% for ten-year loans *
* if the applicant is over 65 years old. The coverage calculation percentage will be, the applied rates will be 2.00% and 4.00% respectively.
The Small Government Agency loan also online
This is the Government Agency form of financing for which there is greater freedom of access. Until some time ago there was a double route, as in addition to the classic forms to be requested in paper form to their own administration, or to be downloaded on the Intranet or by the appropriate section of social security, there was also the possibility of presenting the application directly online, going to the Coiloan website and completing the compilation, using the guided procedure, in the self service section. There is no need to present income documentation, as the data is already present in the system. Today the mode is entirely electronic, and also allows you to follow the progress of the request.
As mentioned it is possible to take advantage of the online calculation of the installments, depending on the various durations chosen, thanks to the present tool that allows you to do simulations. The rates, regardless of the durations, are set at 5.00% with the addition of a 0.50% one-off as administration fees for the case (subtracted upstream from the amount granted).
Government Agency multi-year loans: some limits, affordable rates
The five-year or ten-year Government Agency loans represent the most requested form, as they allow obtaining fairly high sums, thanks to an amortization plan that can be 60 or 120 months. Access limits are:
- 4 years of seniority;
- 4 years of payment in the fund;
- demonstration of the causes that lead to the request, which must take place within a year of the event itself.
For these the total amount obtainable as installment is equal to one fifth of the salary (attention to the calculation of the real amount or transferable quota is made by the administration itself) multiplied by the duration of the chosen amortization plan (within the age limits of the applicant), but can be doubled by taking advantage of the loan with delegation. Given the limitations encountered in the event of a desire to renew, it is generally advisable to exploit the entire maximum transferable quota that the administration recognizes. The rates are: 3.5% plus one-off administrative expenses of 0.5% plus the portion of the risk provision.
As an example of calculation we have (in relation to the special tables available in pdf from the social security site).
Example: on the sum of 10,000 to be repaid in 10 years the installment will be 98.63 USD, but the expenses (which will be deducted from the amount requested) will be:
|0.5% one-time fee||Ages 18-59||Age 60-64||Age 65-69||Age 70-74||Age 75-80|
|50 $||228 $||464 $||790 $||1,314 $||2,239 $|
How to request direct ones
The method of requesting Government Agency direct loans takes place electronically but on two levels. The steps to follow are:
- the interested party asks his administration to fill in the specific form on the intranet;
- the administration sends the online application;
- the request will be in the personal area of the applicant who has two possibilities: proceed with the approval so that the loan request is final and official and is processed, or cancel it and stop the process.
The interested party may also request changes or additions or do nothing but in this case, after 30 days from the date of dispatch by the administration, the system cancels the request. To consult the application and approve it, or subsequently to follow the process, the path to follow in the personal area is:
- Approval Question (if we want to proceed to the formalization of the request);
- Consultation Forwarded Questions (to see how far the practice is, if required documentation must be presented, etc.).
If the loan request is accepted, the sum will be credited net of accessory costs (and expenses) by transfer to the account entered during the request phase.
Guaranteed Multi-year Loans Government Agency
The number of banks and financial institutions that stipulate specific agreements changes from year to year, so we must keep ourselves constantly updated.
The Government Agency offers its own guarantee, only if the hypotheses foreseen by the Regulation are verified. Also in this case there are additional costs to be incurred, which are: 0.5% one-off administrative costs and the “compensatory” risk premium (between 1.5% and 3%, which rises by half a point for the over 65 years).
The rates depend on the agreements as well as the presence of additional accessory costs to be paid to the credit or financial institution.
Government Agency loans: what are the delivery times?
The timing is extremely variable. As regards the small Government Agency loan and the multi-year loans disbursed directly, we are not faced with rapid investigations, also due to the high volume of applications received (assessed by a limited number of employees), and the fact that it can happen not to see your request satisfied.
For example, for the small loan, delivery times range from 45 to 60 days. In the case of those affiliated, the times are reduced and depend on the credit policies adopted by the banks.
Cession of the fifth Government Agency: what alternatives?
The state and public employees, but also the parastatals, who have not completed all the requisites required to be able to apply for financing to the Government Agency (therefore with the exclusion also of the guaranteed long-term loans), have however the possibility of obtaining loans at cheaper rates., requiring a normal fifth assignment.
This is due to the fact that, even if the Government Agency does not directly take over guarantees, it does so indirectly, due to the stability that characterizes the public employment. With lower risk, you therefore have a lower rate than private employees. But we must be cautious in research, as there may be two aspects that should not be underestimated, and in any case not to be taken for granted:
- the age of the applicant (with the transfer of the fifth Government Agency the maximum age at maturity is 90 years, but many institutions stop at 75 or at most 80);
- the application of lower average rates must be clearly highlighted already in the budget (also specifying the categories that can benefit from them, for example ministerial and armed forces, etc.) proper, without allowing themselves to be convinced by a simple feasibility document.
What benefits do you have with the agreements?
To see the level of concession that the agreements can offer, we take into consideration the proposal of Banca Unicredit.
Unicredit provides salary backed loans to public, private and retired employees. If we compare the conditions applied to private employees and civil servants we see that, for a duration of 120 installments and an installment of 300 USD, we will have:
- Public Employees
Amount to be repaid at maturity $ 36,000.00 with a 6.13% APR and 5.50% Tan, while the amount funded is approximately $ 27600;
- Private Employees
Amount to be repaid at maturity $ 36,000.00 with a 9.79% APR and 8.80% Tan and amount disbursed $ 23,306.13.