Financial loans agreements conditions and request

Banks and financial companies in agreement

Banks and financial companies in agreement

We often hear about affiliated financial Government Agency loans but few have a clear understanding of what it is and above all how to apply for it. The first thing to clarify when analyzing the question is that the Government Agency financial loans with which we have agreements are not a product accessible to everyone.

Although these are loans granted by banks and financial companies, in fact, these products provide for intervention by Social Institute. Reason why access to credit is reserved exclusively to those who are registered in a specific Social Institute Fund ex Government Agency. Fund that takes the name of Unitary Management for credit and social benefits.

Not only. In order to obtain funding, the civil servant must also be in service. The applicant must also be able to count on a minimum of four years of service in the employment relationship useful for retirement purposes. The presence of at least four years of contributions paid to the aforementioned Unitary Management is also required.

The Government Agency financial loans with which we have an agreement are also called guaranteed loans, since they enjoy coverage provided by Social Institute. The social security institution takes care of guaranteeing the financing if it occurs in one of the following situations.

  • Termination of service without having the right to a pension;
  • reduction of the beneficiary’s salary;
  • death of the beneficiary before debt settlement.

Amount and repayment of guaranteed Government Agency loans

Amount and repayment of guaranteed Government Agency loans

The guaranteed Government Agency loans granted by affiliated banks and financial companies are products based on the assignment of the fifth. They therefore provide for monthly installments cut directly from the payee’s paycheck. The installment amount, as the name suggests, cannot exceed the fifth part of the beneficiary’s monthly net salary.

Secured multi-year loans can last five or ten years. If the applicant has a few years left to retire, only loans with a duration shorter than this period can be obtained. In other words, if the applicant submits two years for retirement, it will be possible to obtain a loan with a maximum duration of two years.

Let’s move on to the repayment of the loan. The amount that can be financed is defined by the bank or financial company that provides the loan. In the same way, the interest rate is defined by the lender. In addition to the costs owed to the bank, the borrower also faces administration costs and a compensatory premium for the risk of insolvency. Charges to be paid to Social Institute.

How to apply for affiliated financial loans

How to apply for affiliated financial loans

But who grants the approved Government Agency financial loans? The loans are provided by credit institutions and financial companies authorized to grant loans of this type as established by art. 15 of Presidential Decree no. 180/1950.

To know the terms of the agreements signed by Social Institute with the various credit institutions and which banks and financial institutions have signed up to, you can consult the relevant page on the official Social Institute website.

As far as the application is concerned, those who wish to obtain Government Agency loans from banks and affiliated financial institutions must transmit the application to the administration they belong to. The request must be sent in 4 copies. The office will then take care of forwarding the application to the chosen credit institution.

Government Agency Loan Withdrawal Time For Facilitated Loans

Government Agency loan disbursement and necessary time

Government Agency loan disbursement and necessary time

When you need to access credit, the timing of a loan can be a crucial factor. A scenario that affects not only loans disbursed through the traditional banking circuit, but also those granted by Social Institute in favor of public employees and pensioners. In this study, we will therefore address the issue of Government Agency loan times of disbursement.

The first thing to clarify before dealing with the Government Agency loan issue timing is that the Government Agency loan offer consists of several products. There are in fact both direct and secured loans.

The former are paid directly by the social security institution through a special credit fund. The guaranteed loans, on the other hand, are products granted by banks and financial companies affiliated with Social Institute and guaranteed by the Institute.

Conditions of the Government Agency 2018 loan offer

Let’s start by talking about direct Government Agency loans. These fall into two categories, small loans and multi-year loans. The small loans involve the granting of relatively low amounts to be repaid in 12, 24, 36 or 48 months. The interest rate is fixed at 4.25%.

Multi-year loans, on the other hand, can last for 5 or 10 years. The sum that can be financed is defined according to the purpose of the loan, as established by the Government Agency Loan Regulation. The amount that can be financed can also exceed 100 thousand USD, the rate is fixed at 3.5%.

Much like direct Social Institute multi-year financing, secured loans can last 5 or 10 years. The amount payable varies according to the income received by the applicant, the rate is defined by the lending bank.

Without this premise, let’s move on to the timing for the disbursement of Social Institute ex Government Agency loans.

Government Agency loans disbursement times for direct and guaranteed loans

Government Agency loans disbursement times for direct and guaranteed loans

Speaking of the timing for the granting of loans, we start from direct financing. For the small Government Agency loan, disbursement times are approximately 60 days from the date of receipt of the application.

Longer times for the disbursement of long-term loans, for which it takes about 90 days. Again, the period is calculated from the date on which the social security institution receives the loan application.

The reason why the times for the granting of long-term loans are more dilated is due to their characteristics. Being loans aimed at Social Institute, it takes more time to evaluate the request, and the various documents attached to the request.

Finally, let’s move on to the timing for the disbursement of guaranteed Government Agency loans. In this case the times can also be very extended, since the procedure for the request is quite complex. It should also be considered that the timing for the granting of credit may vary according to the chosen credit institution.

What are the differences between installment and loan?

Each person wants to somehow provide for himself, trying to satisfy all his needs and requirements. Sometimes additional funds are needed for this, many immediately think about a loan or an installment plan, not even knowing what their difference is. Many people confuse these concepts, because both credit and installment plan are designed to ensure that a person will have to pay a certain period of time for a certain amount of money. Let’s finally figure out what are the differences between installments and loans, as well as what their advantages and disadvantages are.

What is a loan?

What is a loan?

Credit is a financial relationship between a credit institution and a borrower. A person can borrow the amount of money he needs, while signing a specific agreement on the fulfillment of all requirements, namely paying a certain amount of money on a monthly basis and avoiding delays. The bank usually pays for a full one-time purchase of a person and he subsequently monthly returns funds with an interest rate for use.

What is installment loan?

What is installment plan?

Installments can be called a method of acquiring goods in a store where the seller offers the buyer to pay for the goods in equal parts, without additional payments. So the store gives you the opportunity to give the amount for the purchase in parts, which will be quite convenient for the buyer, while the store will thus increase the demand for its range and popularize its outlet. Here, the user must return the funds monthly until the goods are paid in full.

Advantages and disadvantages of installment and loan

Advantages and disadvantages of installment and loan

It is very difficult to immediately understand which of the options will have the most advantages, therefore it is worth highlighting them all, and also not to forget about the disadvantages, because there may even be more of them.

Among the advantages of a loan are the following:

  • The ability to pay for purchases immediately, and then pay the loan;
  • The flexibility of design allows the borrower to take, for example, a loan for household appliances * at the right time, and then make purchases;
  • It is very easy to pay unforeseen expenses with a loan;
  • A person immediately receives money in his hands;
  • Safe clearance and receipt of funds.

There are enough advantages, but let’s see what benefits installment has. The main advantages of installments can be called:

  • No need to pay an additional commission or other payments, except for the goods;
  • Minimum requirements from the borrower (do not need a lot of documents);
  • Draw up very quickly, literally 15 minutes;
  • No guarantors or collateral required.

The advantages of both credit and installment plan are quite significant, and there and there you can get the necessary service and be satisfied. It is worth considering now the shortcomings of these services in order to accurately understand that everything is better.

Significant disadvantages of the loan are:

  • High interest rate, which sometimes exceeds half of the loan amount itself;
  • A short lending period, which is not convenient for everyone;
  • Sometimes a bank can give out only a certain amount, it can be less or more for a person’s needs, which is very inconvenient.

There are drawbacks in loans, but they are not very significant, what will be the disadvantages in installments and how they will differ. Installment has its drawbacks, namely:

  • Installment is issued for a very short period, which is not always convenient;
  • Be sure to make a down payment for the product and most often it should be more than half the cost;
  • Since the installment payment period is not long, purchase fees will be increased, which can be very large.

Having considered all the advantages and disadvantages of both installment plan and loan, we can conclude that in both cases there are pluses that make the service very profitable, but at the same time there are also disadvantages that are not so beneficial for borrowers. Differences between a loan and an installment plan are obvious, so before buying, you should know what will be more profitable for the person himself, because only he will decide how it will be more convenient for him to pay for his purchase, as well as which option will be most convenient for him. Each person must independently decide which option will be more convenient for him in a particular situation.

How to get a “Warm loan”?

Every month, people receive receipts for utilities, in the winter payments increase several times, because you need to pay for electricity, gas, as well as for heating. Today, the state is trying to meet its citizens, therefore, it offers a special program “Warm credit”. The meaning of such a project is to take money from the country’s budget and partially cover the payment of public utilities for citizens.

Such a loan can be issued, but if it cannot be done, a person can get a microloan from a bank not on simpler terms, which will not require him to collect documentation or pledges with guarantors. This design takes very little time, and a person gets everything that he needs quickly and on favorable terms.

Warm credit, what is it?

Warm credit, what is it?

After studying the statistics, you can see that most of the earnings of people families go to pay for utilities. At the same time, with each next heating season, the amount for warming the room increases. Many people advise starting with warming the house itself in order to keep everything warm in it rationally, but it is worthwhile to understand that such a solution for many people will be very difficult financially, because it is very expensive to warm the house. People can also invest in a meter, as well as in an energy-efficient system that can save up to 70% of heat and will pay off in just a few heating seasons. Of course, such a system will be very expensive, not many will be able to immediately find the right amount for installation. Today, the state is meeting and proposes the program, to all who wish to make their premises energy-efficient, this can be either a private or a multi-storey building.

To warm the building, a loan is taken from the bank, equipment is purchased and installed, then the state calculates the costs and reimburses them, and the residents of the house will just have to pay extra for the remaining costs. Improving the heating system takes place in several stages, first you need to change the windows in the entrance and insulate the facade of the building, then in the living rooms you also need to replace the windows. The last stage includes the installation of a boiler with temperature control, which residents can set themselves, depending on the weather conditions of the seasons. Having examined what warm credit is, let’s move on to the state program and how it works.

Conditions for applying for a warm loan

Conditions for applying for a warm loan

Before applying for a loan, you should study its conditions, because there are quite a few factors that can affect the receipt of funds. For example, each bank requires a certain set of documents from the borrower, you can get a form for financial statements on the condominium-based insurance for the past six months. Also, a prerequisite for a loan is that the borrower will have to prove that the funds went as intended.

Confirm the purpose of the loan will help acts on the work performed, as well as checks on the purchase of the necessary equipment. If a lot of people live in an apartment building who receive a subsidy, then the state will be able to recover the amount even more, the main thing is to provide all the necessary documents that will prove the presence of subsidies among the residents.

Loan benefits

Loan benefits

It should be understood that when applying for such a loan, the borrower will not need to bring a security deposit in the form of movable or immovable property, also if you apply for a loan at PrivatBank, you will be able to take advantage of the grace period where the first three months you will only need to pay the interest rate, without the body the loan itself.

If the loan is issued in an apartment building, then there will be no need for each tenant to take a certificate of income from work. If you are applying for a loan for a private house, then the borrower needs to provide a certificate of employment, which should indicate a salary of at least 5,000 dollar.

Is it worth seeking financial for personal loan?

Personal loans should be seen as an emergency resource to be used only as a last resort. This is because this type of credit is usually expensive, especially in financial. While the average interest charged on personal loans made at banks is between 5% and 6% per month, on finance, the rate may be close to 20%.

To have an idea of ​​comparison, taking a loan of $10,000 at an interest of 20% per month, you will pay $1500 more in interest per month than if you had contracted a 5% line.

Before making this decision, which will compromise your budget in the coming months, it is essential to answer some basic questions:

 

Do you really need that money?

money loans

Taking out a personal loan is on the joke. The operation must not be contracted on impulse. Think about your real need for that money.

 

Is it possible to wait a while and save the amount you need?

If you decide that you really need the money, assess your urgency now. Is it possible to wait a while until you can collect the total or even partial amount so that you can take out a personal loan for a smaller amount?

Can you borrow from someone closer?

money loans

Borrowing money from friends and family, for example, the agreed interest rates tend to be much lower (sometimes symbolic) when compared to interest rates in the market.

 

Will the final installments fit your budget without blowing it?

This is one of the main practical factors to be considered when taking out a personal loan. There is no point in making a commitment that will end up destabilizing your budget and creating a snowball of debt. Take the opportunity to check that the distribution of your expenses is in line with the 50-15-35 rule.

 

What is the amount of interest charged? Are they the best option you can get on the market?

money loans

Another super important factor to be evaluated when seeking a personal loan is the interest charged. Compare here the interest rates charged by the main financial institutions in the country.

Will I borrow from the bank or finance?

You already know that, in general, the interest on personal loans in finance companies is usually higher than in banks. However, they offer some advantages, such as the possibility of lending money to people with a dirty name, something that does not happen in banks. These must be the two main factors to be weighed in your decision.

New Government Agency first home loan for employees and public pensioners

 

Public employee or pensioner is not sufficient for access to credit

Public employee or pensioner is not sufficient for access to credit

Buying a house is one of the reasons why Italians are more willing to go into debt. Thanks to the consequences of quantitative easing applied by the MCB, this is a particularly advantageous period for those who wish to apply for a mortgage. A scenario in which the Government Agency mortgage for first home purchase is one of the most competitive offers.

It is a product dedicated exclusively to those who refer to the public sector. They then have access to mortgage Government Agency for first home purchase only public employees and retirees.

However, being a public employee or pensioner is not sufficient for access to credit. It is also necessary to satisfy a series of requirements. First of all, to be registered with the Social Institute Credit Fund, the Unitary Management of credit and social benefits. Fund to which the applicant must be registered for at least one year.

In order for the Government Agency mortgage for first home purchase to be granted, it is also necessary that the public employee or pensioner who submits the application does not own any other home located on Italian territory. Requirement that also extends to other members of its family.

However, there are some exceptions, namely scenarios in which it is possible to obtain the Government Agency mortgage for the purchase of a first home even if already a homeowner.

Amounts and refund

Amounts and refund

Now that we have seen who the Social Institute ex Government Agency mortgages are aimed at for the purchase of the first home, let’s move on to the financeable amount and the repayment conditions.

By using these products, it is possible to obtain a sum of up to 300 thousand USD.

The amount payable, however, cannot exceed the value attributed to the property during the appraisal by the technicians appointed by Social Institute. In the same way, it is not possible to obtain a sum higher than the purchase price that was declared in the deed of sale of the real estate unit.

The repayment plan is in the French style and provides for constant and deferred half-yearly installments. It can last 10, 15, 20, 25 or 30 years. However, mortgages requested by those who have already turned 65 are an exception, in which case the maximum expected duration is 15 years.

The new rates 2018

As regards the interest rate, it can be fixed or variable. In the first case we have a Tan defined on the basis of the loan to value (LTV) method or in relation to the relationship between the value of the mortgage and that of the house. Below is the table with all the values ​​applied to the Tan for fixed rate first home mortgages.

Those who opt for variable rate mortgages instead can benefit from a Tan equal to the value of the 6-month Euribor plus 200 basis points.

Government Agency mortgage application

Government Agency mortgage application

Finally, let’s move on to the question of the Government Agency loan request for first home purchase. The loan application must be sent electronically, through the online service on the Social Institute.it site.

To send the request you must be in possession of the Social Institute Pin. code that can be requested at an Social Institute office or using the wizard on the Social Institute website.

Loan for public employees early retirement at 62 years

Public employees retirement: the consequences of the reform

Public employees retirement: the consequences of the reform

The reform of the Public Administration, Legislative Decree 90/2014, provides for a rejuvenation of the public sector. In fact, PA employees will be able to retire at 62 with the maximum contributions achieved. A novelty that applies to both employees and managers who, having reached the necessary years of contributory seniority, may also be retired ex officio.

The reform also abolished detention in service, canceling the rule that allows those who exceed the age set for retirement to continue working. The standard is already in effect from August 31, 2015 for teachers and from October for all other categories. Exceptions are military and magistrates, for whom it will activate on December 31st.

Public employee pension expenditure

Public employee pension expenditure

Nothing to do instead for the 4 thousand teachers of ” Quota 96 ” for which the government has not yet managed to find the necessary funds to cover their retirement. But what are the effects that the civil servants pension reform has had on the state coffers?

According to what was announced, the expenditure for pensions paid by Social Institute to civil servants amounted, on January 1, 2015, to a total sum of 65 billion USD for 2,818,300 social security treatments. An increase of 0.16% compared to those recorded on January 1 of last year.

Obviously, a greater number of pension treatments corresponds to an increase in the overall expenditure of civil servants, which in fact rose by 0.75% in 2015. This is what emerged from the data of the Social Institute Public Employees Management Observatory, published last May 15.

Pension calculation: civil servants cost more and more

Pension calculation: civil servants cost more and more

On 1 January 2015, on average, the monthly pension allowance for civil servants was $ 1,772.9 gross, $ 10 more than in the same period of the year. The average amount of treatment, explains the Institute, is 2,175.1 USD for men compared to 1,486 USD for women. Female workers represent 58.4% of the total public pensioners, but receive on average a check equal to 68.3% of that of men.

By checking the data for individual pension funds, it is clear that the highest number of pension treatments, 1,677,746, are paid by the State Employee Pension Treatment Fund.

Following are the pensions paid by the Pension Fund for Employees of Local Authorities, 1,054,013, and those of the Healthcare Fund with 68,540 total treatments. The Teachers’ Pension Fund and the Official Judicial Pension Fund close the line with 15,095 and 2,906 pensions paid respectively.

The expenditure for the new pensions paid was 2.5 billion, equal to 4% of the total expenditure. The average amount of civil servants’ pensions paid out in 2014 was instead 1,872.8 USD, a good 6% more than the average amount relating to the total of current pensions.