Child loan guide with 3.5% discount rate

Government Agency multi-year loan for child expenses

Government Agency multi-year loan for child expenses

Government Agency long-term loans are a form of access to credit that allows you to obtain even large sums with which you can face expenses of various kinds. expenses that can also be linked to children and in this case we speak of Government Agency child loan.

Before reviewing the purposes that fall into the category of Government Agency child loan, however, it is necessary to talk about the beneficiaries. Multi-year loans can only be obtained by public employees and pensioners registered in a special Credit Fund, the Unitary Management of credit and social benefits. Public employees are also required to have an open-ended employment contract.

Purpose and Amounts

Purpose and Amounts

As already mentioned, long-term loans are granted by Social Institute only to face specific expenses. Among these, the following are related to the applicant’s children.

  • Birth, adoption or pre-adoptive fostering of one or more children;
  • Dental prostheses and dental treatments referring to the dependent children of the applicant;
  • Marriage of the son of the member;
  • Enrollment and attendance by the applicant’s child in post graduate courses lasting at least two years.

With the exception of the Government Agency child loan related to marriage, the sum that can be financed is defined on the basis of the applicant’s income. In the case of a wedding loan, it is not possible to exceed the limit set by the Social Institute Loan Regulations, set at 23 thousand USD.

The duration of amortization for all the above purposes is set at 5 years and the interest rate is 3.5%. Administration costs are calculated with the application of a rate of 0.5%. Then there is a premium for the payment of the Social Institute Risk Fund, defined on the basis of the age of the applicant, the duration of the loan and the amount financed.

Government Agency loan for home child purchase 2018

Government Agency loan for home child purchase 2018

From October 2011 it is also possible for public employees and pensioners to apply for a multi-year loan for the purchase of their son’s home. In this case, however, we have a duration of the amortization plan of 10 years.

The interest rate is fixed at 3.5% while the maximum amount that can be financed is set at $ 150 thousand. As for the loans we have seen in the previous lines, the administration costs, defined with the application of a premium for the Social Institute Risk Fund, are also to be considered.

How to submit the application

How to submit the application

The loan application is transmitted electronically, using the telematic services made available by the social security institution. Public employees send the application through the Administration, while for pensioners there is a service for sending online.

As regards the documentation to be attached to the application, this varies according to the purpose. In this regard, reference is made to the Social Institute Loan Regulations, which can be consulted directly online on the Social Institute.it website.

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