Social Security or former Government Agency loans are granted to civil servants or pensioners directly by the National Institute of Social Security in ways similar to those offered by common credit institutions.
So why should they be preferred to those of a bank? The reason is that they offer benefits designed specifically for workers and getting them is much simpler than you might think.
Social Security loans for civil servants and retirees
First of all, we clarify that there are no Social Security loans for private employees, who can turn to banks or credit institutions. Social Security loans for civil servants can be of 2 types, small loans, and multi-year loans.
In the first case, as you can guess from the name, it is possible to obtain reduced funding ranging from one to eight months. On the other hand, as far as direct multi-year loans are concerned, these cannot exceed 5 or 10 years, a period of time in which the installments must be completely disposed of through the transfer of a fifth of the salary received.
The advantage of knowing that the installments will be extrapolated directly from your salary is that there is no risk of forgetting it and you will be able to pay the balance of the loan without realizing it. Another advantage of Government Agency (or formerly Government Agency) loans is that, while maintaining a guarantee of repayment of the loan even in the event of death, this will not make use of the heirs.
As far as Social Security loans for pensioners are concerned
The procedure is very similar to that of Social Security loans for civil servants. The transfer of the fifth on the pension remains and, in this case, the Government Agency loans cannot exceed 120 installments and the level of financing granted depends on the net pension received. The advantage of Social Security loans for retirees is that they are offered to people up to 90 years of age, which is difficult to obtain in any credit institution.
Before being able to access Social Security or Government Agency loans, a pensioner must obtain from the bank the communication of the transferability of the pension, containing the maximum amount that can be withdrawn monthly by the same.
In addition, both in the case of civil servants and pensioners, insurance coverage must be taken out to protect both the supplier and the recipient of the loan.
An estimate of Social Security loans and how to request them
Requesting a loan is very simple and you just need to connect to the portal of the National Social Security Institute and fill in the appropriate form provided, sending it electronically or by post. To obtain a quote for Social Security loans, a special tool is provided that allows you to calculate the amount of the loan that can be obtained, the monthly installments and other important details. To do this, simply connect to the online services made available by the site.
Requesting a loan from the Social Security Institute can, therefore, prove to be very advantageous, even if it is never advised to compare the various proposals before deciding whether to rely on this or a bank.