Loans for debt consolidation on favorable terms
Debt consolidation is one of the main reasons why you are applying for a personal loan. In fact, many citizens find themselves in difficulty in repaying ongoing loans. A situation in which public workers and pensioners are in a clear advantage over other categories of taxpayers since they can access Government Agency loans for debt consolidation.
But how to apply for an Government Agency loan for debt consolidation? The former Government Agency Management of Social Institute provides two types of financing for public employees and pensioners: small loans and multi-year loans. Loans that are accessible only to those who are registered in the unitary management of credit and social benefits.
Characteristics of small loans and multi-year loans
Small loans fall into the category of personal loans and can be granted without the applicant justifying his credit application. As a result, a small loan can also be requested to consolidate past debts.
On the other hand, the issue of long-term loans is different, which are granted only in the face of documented needs falling within the cases envisaged by the Social Institute Loan Regulation, among which we find the extinction of a current mortgage loan. It will therefore be possible to use multi-year loans for debt consolidation only to meet the advance payment of a mortgage.
As regards the contractual conditions, small loans can have a duration of 1, 2, 3 or 4 years and for each year of duration of the loan it is possible to obtain a sum equal to two average net monthly payments received by the applicant. The interest rate is 4.25%.
On the other hand, the Government Agency loans for the consolidation of long-term debts for the repayment of a loan only allow access to the amount necessary to pay the loan. The repayment takes place with a 10-year amortization plan and the rate is 3.5%.
As already mentioned, among the various purposes envisaged for long-term loans, the early repayment of an ongoing mortgage loan, stipulated by the beneficiary or spouse, is envisaged. You can obtain funding to pay off a mortgage entered into for any reason. The maximum amount that can be financed is defined on the basis of the amount to be paid for the early repayment of the mortgage.
Presentation of the application
But how to apply for Government Agency loans for debt consolidation? For both small loans and long-term loans, the application must be submitted electronically. The application forms are available in PDF format directly on the official Social Institute website.
To download the application forms it is necessary to connect with the official Social Institute portal and follow the path: “Home – Services and Services – All modules – Management of Public Employees – Registered / Retired – Credit and social benefits”.
As regards the actual submission of the application, civil servants in service activities must submit the request through the Administration they belong to. For pensioners, on the other hand, it is necessary to use the special online service.
Documents for a home renovation loan
In the specific case of a multi-year loan for the repayment of a mortgage in progress, the following documents must be attached to the application form:
- financing act;
- self-certification of family status;
- Declaration of the lender institute stating the amount necessary to pay off the mortgage and for what title it was granted.
Finally, remember that on the Social Institute website there is also a simulator that allows you to estimate the maximum amount that can be financed and the monthly installment to be paid. To access the Government Agency loan simulator for debt consolidation, simply follow the path: “Home – Services and Services – Management of public employees: simulation of calculation of small loans and multi-year loans”.
Once the web application is reached, it allows you to orient yourself in the offer of loans at preferential conditions granted by Social Institute. It is possible to choose between three simulation modes:
- loan simulation;
- loan simulation for specific amount;
- loan simulation for ideal installment.