Loans to pensioners: the types and how to request them

All former state, parastatal and public administration employees can access the so-called Government Agency loans for pensioners (National Social Security Institute and assistance for public administration employees. Let’s start by saying that the Government Agency no longer exists: already in 2011 the Save Italy Decree led to the closure of this social security institution, but the loans for those who work or worked in the public sector continue to be called, by habit, Government Agency loans, although the reference body is currently the INPS.

The Government Agency loans for pensioners can be paid directly by the social security institution or through banks or financial institutions to which specific agreements have been stipulated. In the event that the loan is paid directly by the social security institution, the sum is financed by the Credit Fund, fed by the contributions paid by public employees, and is therefore bound to the availability of funds.

This type of loan for retirees is particularly advantageous thanks to subsidized interest rates, reduced repayment plans and more sustainable monthly installments.

Government Agency loans for pensioners: who can request them

Government Agency loans for pensioners: who can request them

Government Agency loans for pensioners can be requested by those who have worked in the public sector or in the public administration and receive an old-age pension. The applicant must also be registered with the Government Agency fund for Public Employee Management.

To apply for a loan for Government Agency pensioners it is necessary to download the appropriate form from the INPS website and present it, duly completed, according to the procedures required case by case. Among the necessary documents there are then the pension slip and a valid identity document.

The types of Government Agency loans for pensioners: the small loan

The types of Government Agency loans for pensioners: the small loan

The Small Loan Management Public Employees is – as the word itself says – a small loan to be used for daily needs or to meet small expenses, which is reimbursed with constant installments directly deducted from the monthly pension.

Public pensioners can also access this type of loan, but only if they are registered with the Credit Fund: the former public employee is registered if at the time of the application for retirement he has submitted a request to join the Credit Fund and then pays his contribution through retirement on the pension.
The amount of the Government Agency Small Loan can be equal to 1, 2, 3 or 4 net pension monthly payments, to be repaid over a period of time ranging from one to four years, with installments that cannot exceed one fifth of the pension monthly.

The application for the Small Loan can only be submitted online via the INPS website or via the toll-free telephone number from the 803164 or via patronage.
In this case it is not necessary to give reasons or to present expense documents.

Types of loans for retired Government Agency: multi-year loans

Types of loans for retired Government Agency: multi-year loans

The former Government Agency pensioners can also request a multi-year loan, which can be used to address some personal or family needs, which in this case must be documented.
The requisites for accessing a multi-year public employee management loan are the registration in the unitary management of credit and social benefits, at least four years of service and at least four years of contributions paid to the unitary management.

This type of Government Agency loan for retirees can have a duration of five or ten years, and can therefore be repaid with 60 or 120 monthly installments whose maximum amount cannot exceed 20 per cent of the pension amount.

The application to obtain a direct multi-year loan for the Public Management can be sent exclusively by telematic means through the online service called Web Multi-Year Loans; in particular, pensioners registered with the Credit Fund can submit the application, together with all the required documentation, through the reserved area of ​​the INPS website with their own Pin for completing and sending them online.

The documents that must be presented together with the application for the loan request for pensioners are a valid identity document, a medical certificate of sound constitution issued no later than 45 days before the application is submitted, the documentation attesting to the state of need and the possible expenditure depending on the motivation provided for in the Regulation.

Fifth pension assignment, how it works

Fifth pension assignment, how it works

Loans for former Government Agency pensioners are reimbursed by the fifth of the pension. How does it work?

First you need to calculate the transferable fee, which must not exceed 20 per cent (a fifth, exactly) of the salary or, as in this case, of the pension. For pensioners, an additional factor must be taken into account: the difference between the monthly payment and the net amount of the pension cannot be less than the so-called minimum pension, which for 2016 is set at € 501.89.

The particularity of the pension assignment is the fact that the loan repayment installments are deducted from the applicant’s net pension directly by the pension institution, thus eliminating the risks of forgetfulness or mistakes in the payment.

Loans with an agreement for pensioners

Loans with an agreement for pensioners

In addition to these forms of loans for pensioners Government Agency there is also the possibility of accessing agreed loans provided by banks and financial companies affiliated with the INPS, which thanks to these agreements can grant loans at advantageous conditions.

Generally speaking, these are unfinished loans, for which there is therefore no need to justify the request for money, granted in the form of personal loans with the assignment of the fifth or in the form of a loan.

The interest rate applied, as well as ancillary expenses, depend on the conditions set by the bank or the financial institution chosen; also the documentation to be presented to access the loan may vary from institution to institution.