Guide to 10-year loans
Thanks to their social security and employment position, retirees and civil servants have access to subsidized Social Institute ex Government Agency loans. Credit lines that guarantee the possibility of accessing credit at an interest rate. Among these are the 10-year Government Agency loans.
Ex Government Agency loans are divided into two product categories, small loans and multi-year loans. The former are short-term products that allow relatively low sums to be obtained, while multi-year financing is designed to face significant expenses.
Specifically, multi-year loans can last 5 or 10 years. When we talk about ten-year loans, we therefore refer to the multi-year Social Institute ex Government Agency loans with a ten-year duration. Loans that are meant to meet important expenses.
Purpose of loans for employees and retirees
We remind you that the amount and duration of multi-year loans vary according to the purpose. Purpose that must be included among those provided by the Government Agency Loan Regulations.
In fact, in order to access credit, it is necessary that those who apply for ten-year Government Agency loans have to face expenses falling within those envisaged by the Regulation. For lesser expenses, a 5-year reimbursement is provided, while for higher expenses, 10-year reimbursements are eligible.
As a result, ten-year loans are designed to deal with particularly important expenses. Below are the purposes for which it is possible to apply for Government Agency financing for a ten-year period.
- Purchase of the first house.
- Redemption of public housing or public housing already rented.
- Construction of the first house.
- Acquisition of a house in a cooperative or by a cooperative consisting of tenants of houses of public bodies and being disposed of.
- Restoration and conservative restoration interventions, extraordinary maintenance and building renovation of the house.
- Reduction or early repayment of a mortgage loan signed, in any capacity, with credit institutions by the applicant or spouse.
- Serious illness of family members of the applicant.
In addition to the aforementioned purposes, it is also possible to obtain ten-year Government Agency loans to meet exceptional and socially significant expenses that require a significant economic commitment.
Amount and refund
The eligible amount is defined on the basis of the applicant’s income and the purpose of the loan. What has been said taking into account the limits set by the Social Institute Loan Regulation, which provides for limits on the amount for some of the purposes envisaged.
The repayment takes place in 10 years and involves monthly installments. The interest rate is fixed at 3.5%. A rate of 0.5% for administration costs applies to the gross amount of the loan. The beneficiary must also face the payment of a premium for the Social Institute Guarantee Fund. Premium that is defined on the basis of the age of the applicant and the duration of the amortization plan.