Are you planning to buy the car but don’t have the necessary liquidity? If you find yourself in this situation, the way to go is to use dedicated credit lines. However, not all loans provide affordable rates and generally conditions able to fully respond to your requests. Public employees and pensioners have an ace up their sleeves: Government Agency loans for car purchase 2017. Here’s how they work.
Loans for car purchase: which one to choose
What are they, what do they offer and how can I apply for Government Agency loans for car purchases? They are products supplied by Social Institute, given that Government Agency is no longer active, characterized by favorable rates.
The contractual elements are different depending on the financing, in common Government Agency loans for car purchase 2017 have the public of the beneficiaries.
These are products designed to answer the questions of public employees and pensioners related to the unitary management of credit and social benefits.
However, the applicant must keep in mind that the requirements vary significantly.
The small loan and Government Agency Social Institute 2017
The Small Public Management Loan is a loan granted by Social Institute, designed to meet any need of the beneficiary as long as it is of limited economic size.
We are therefore not talking about a loan specifically designed for the purchase of the car but it can also be used for this purpose. Thanks to its flandibility of use.
What are the requirements to consider? It is a product tailored to the needs of employees and retirees enrolled in the Unitary Management of credit and social benefits.
Those who are hired on fixed-term contracts can obtain funding only for the years in which the contract is active.
Small loan rates 2017
Who chooses this product at what interest rates are they facing? Social Institute has thought of a nominal annual rate of 4.25%. Clearly, the holder of the loan will also have to weigh the costs chapter.
Which ones are they? There is a contribution for administration costs which accounts for 0.50%. The risk provision premium must also be taken into consideration.
In addition to the rate, the employee or pensioner cannot neglect the duration factor: 12, 24, 36 or 48 months. What is the amount that the public worker can receive?
The sum ranges from a basic threshold of once the salary or pension up to a limit amount equal to eight times the monthly allowance.
What the Government Agency 2017 Multi-year Loans offer
Another option that falls within the scope of the Government Agency loan offers for car purchase is represented by Multi-year direct loans for public management.
Again we are dealing with credit lines granted by Social Institute. The repayment process is based on the assignment of the fifth. From a practical point of view what are the implications?
The installment is automatically subtracted from the salary or pension and cannot andceed 20% of the monthly credit. A feature that makes the repayment plan simple and immediate.
In spite of the small loan, the direct multi-year is available only for requests that respect the purposes indicated in the Social Institute regulation. What are the admitted questions? They range from the purchase of the first house to the andpenses for the wedding.
Analyzing the permitted purposes, we find ” Purchase of a car for the member ” (maximum amount 20 thousand USD) as well as “Purchase of a modified car, an orthopedic wheelchair for the disabled and high-cost prostheses”.
For this reason we can make it part of the Government Agency loans for car purchase.
The duration is longer than the previous loan. The alternatives are two, five or ten years (60 or 120 monthly installments). For the car purchase, however, the duration is five years.
Another key element is the interest rate. This is competitive, the installment is calculated in relation to 3.50%, however how the Small loan is to analyze the costs (administrative and risk fund premium).
To understand if the direct multi-year loan is really the right proposal, the access requirements must be considered. What elements must the holder of the loan have?
It is a loan indicated above all for workers hired on permanent contracts and retired people. A four-year service subscription is required, as well as four years of contributions provided to the Management.
Even the worker who has a fixed-term contract can take out the multi-year direct loan but must meet other requirements:
- work contract lasting at least three years;
- the contract must be in progress while the refund occurs;
- the severance indemnity must be transferred as a guarantee of reimbursement.
How to apply for car purchase financing
What are the procedures for applying for Government Agency loans for car purchases? In both cases, the employee must download the request form (the download is available on the Social Institute.it portal) and contact the relevant administration.
By choosing the direct multi-year loan, retirees must use the features of the Social Institute website. To carry out the request, the Social Institute PIN is essential.
The latter is a code provided by the Social Security Institute for identification on the web portal.
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