In support of public, state and retired employees who find themselves having to face small unexpected or urgent expenses, the formula of Small Loan can be useful, a very convenient and safe way to access credit for those who request it.
Small loans: Let’s see in detail how it works
The Institute for Public Administration with the Save Italy Decree of 2011 was incorporated but retains its initial function, ie the provision of loans to public, state or retired employees . Law No. 214 of 2011 regulates the legislation for these loans.
The amounts that can be requested are strictly influenced by the debt amortization plan and, above all, are calculated on the basis of the applicant’s salary and the presence or otherwise of other loans that interest him. The duration of the Small Loan can be 12, 24, 36 or 48 months. For example, in the case of annual duration, the maximum amount that can be requested will be equal to the average amount of two net monthly payments.
For pensioners, on the other hand, the limit remains of not being able to exceed the threshold of one fifth of the salary with the deductions for the small loan.
For example, for an amortization plan of 36 months you can get an amount equal to six or three months based on the existence or otherwise of other deductions within the pay envelope, while for a small loan of 48 months you can get a sum equivalent to 8 or 4 net monthly payments.
Once the loan has been approved, the money will be paid directly into the current account indicated by the loan applicant. It is also possible, alternatively, to withdraw the money in cash from the Bank.
The following interest rates are applied to the loans:
- Interest rate (Tan) equal to 4.25% per annum
- Administration costs of 0.50%;
- Risk fund premium: an insurance policy whose value depends on the amount of the loan
Another interesting aspect of the loan is that with this type, if the beneficiary dies or remains in permanent disability due to a service or contracted in service during the repayment period of the credit obtained, the sums are not owed by the heirs .
The procedure for a retired beneficiary is much simpler
It is necessary to provide the application directly electronically, through the online services of the portal , on the .it website, by accessing the “Public Employee Management Services” section or through the Contact center (free toll-free number 803 164 ) or through one of the patronages agreement. The credit of the agreed amount will be paid in full to the bank or postal account provided by the applicant, while for the pensioner the IBAN is the one normally used to credit the pension.
The repayment of the loan starts from the second month following the one in which the payment of the expected sum occurs. It is also possible to renew the Small Loan 2016 once a certain minimum repayment period has ended, calculated with half of the total duration of the amortization plan initially envisaged.
Here is a concrete example. For annual loans, renewal can be requested and can be implemented after 6 months. The limit rises to 12 months for 24-month loans. The same proportions apply to loans of 36 months (3 years) and 48 months (4 years).