Social Institute loans for retirees
Social Institute loans for retirees: how do they work? Introduced in the post-war period, the loan on cession de quinto is a particular type of financing that allows you to obtain credit only thanks to the presence of a paycheck or pension.
Initially reserved for employees, the possibility of taking out extinguishable personal loans through the assignment of the fifth was also extended to holders of pension treatments. In order to guarantee maximum protection for its pensioners, Social Institute has defined the methods and conditions necessary to grant these loans.
But how do Social Institute loans for pensioners work? These are loans on assignment of the fifth, granted by banks or financial companies, which are repaid by direct deduction from the installment from the applicant’s pension. Charge that is made by the Social Institute.
Who can request them
The institution then pays the pension net of the monthly installment to be repaid to the lender. As the name suggests, the transfer of the fifth provides for a maximum amount for the installment equal to the fifth part of the pension net of taxes.
Who can get Social Institute loans for retirees? all holders of social security treatment have access to financing with the exception of the following services:
- civil disabilities;
- family allowances;
- pensions and social allowances;
- monthly allowances for disability pensioners;
- income support allowances;
- Exodus benefits pursuant to art. 4 of Law no. 92/2012 paragraphs 1 to 7 – ter.
In the case of a pension with joint ownership, the portion of treatment not attributable to the applicant is excluded from the transfer of the fifth.
The conditions applied by the Social Institute convention
Before paying the installment withheld from the pension to the bank or financial provider of the loan, Social Institute checks the presence of certain conditions aimed at guaranteeing the protection of the pensioner. First of all, the lender must have all the legal requirements to grant this type of financing.
Having ascertained this condition, it is essential that the rate applied to the sale is lower:
- the anti-usury “threshold rate” if an accredited financial institution grants the loan;
- at the conventional rate established for the reference age group, for loans granted by financial institutions affiliated with Social Institute.
For the purposes of the approval of the Social Institute it is essential that the Social Institute loans for pensioners provide for a monthly installment not exceeding one fifth of the pension and in the contract must be indicated all the expenses related to the financing (preliminary investigation, interest, insurance premium for priority, commissions and early extinction).
Government Agency loans for public and state pensioners
In addition to the loans on the assignment of one fifth of the pension granted by banks and financial institutions affiliated with the social security institution, the former Government Agency pensioners can also benefit from loans at subsidized conditions granted directly by Social Institute.
In fact, the Institute grants subsidized rate loans to public employees and pensioners registered with a particular Credit Fund, the Unitary Management of credit and social benefits. The loans dedicated to Social Institute pensioners are divided into two categories: small loans and multi-year loans.
Small loan 2017
The small Social Institute ex ex Government Agency loan are subsidized rate credit lines that allow you to access sums of up to a maximum of eight average monthly pension payments received by the applicant. The repayment plan can range from 12 to 48 months and the interest rate is fixed at 4.25%.
In addition to the Tan, administration costs and a share for the payment of the Social Institute Risk Fund also apply to the gross amount of the loan. Administrative fees are 0.5% while the value of the premium varies according to the duration of the loan amortization plan and the age of the applicant.
The loan application must be submitted electronically, using the special online service made available by Social Institute. Alternatively, you can request assistance from the Social Institute Contact Center, or contact a patronage. In any case, there is no need to justify the request for financing in any way, since small loans fall into the category of personal loans.
Five-year and ten-year financing
As regards long-term loans, these fall into the category of loans aimed at or granted to meet specific expenses. Social Institute, in fact, grants these credit lines exclusively to meet documented needs which must fall within the cases indicated in the Social Institute Loan Regulation.
Social Institute loans for long-term pensioners can last five or ten years and the maximum amount that can be financed varies according to the reason for which the loan is requested. For example, the loans required for the purchase or construction of the residence house allow access to sums of up to € 150 thousand to be repaid in 10 years.
If, on the other hand, a loan is requested for the purchase of the car, the maximum amount payable is 20 thousand USD. Amount to be repaid with a five-year amortization plan.
In any case, the interest rate (Tan) applied is fixed at 3.5% and, as for small loans, it is necessary to take into account the administration costs (equal to 0.5% of the gross amount of the loan ) and the risk fund premium.
Those who wish to apply for Social Institute loans for long-term pensioners must download the appropriate application form from the Social Institute website and submit the request online, using the dedicated service on the Social Institute.it portal.
Finally, remember that on the official Social Institute website there are online services that allow you to simulate the subsidized loans granted by the institution (both small and multi-year loans) and the calculation of the transferable portion of the pension. For more information on Social Institute loans and other services provided by the institution, please refer to the official Social Institute portal.