We find out which are the best loans for state employees available for this 2019. We will see the main features of this form of funding and the necessary requirements to be able to have access to it. Finally, how to calculate an estimate with the expected monthly repayment rate and the interest rates applied thanks to the Government Agency tables, now available on the Social Institute website.
State Employees PaydayLoans 2019: main requirements and characteristics
If you are looking for the best financing for state employees, one of the most cost-effective solutions is undoubtedly the one offered by Social Institute, which manages those that are still known as Government Agency loans, as they were previously managed by this institution. First of all, to introduce this product it is good to start by taking a look at the requirements of the Institute in order to have access to the desired credit, and the main features of the different solutions. Then we will take care of the Government Agency loan tables, so that the repayment rate and interest rates can be calculated independently. All employees (but also former employees) who work at any government agency can apply for this type of loan. Among the required requisites it is also specified how the applicant must necessarily be registered in the Unitary Management of the credit and social services, and therefore to the so-called Credit Fund. For all those who work at state administrations or local authorities, this registration takes place automatically, and the worker will be kept from the payroll at a rate of 0.35%. As for the other categories of state employees, it is still possible to apply for the credit fund, without which it will not be possible to receive the desired Social Institute financing.
The characteristics of the Social Institute 2019 government employee loans are those of the sale of the fifth, which is probably the best solution for employees. As you probably already know, this form of financing is characterized by monthly repayment installments which do not exceed one fifth of the net salary received and which are automatically deducted from the paycheck. This will guarantee the loan recipient a refund without problems either from the point of view of the expenditure to be addressed, or from the point of view of payments, since it will not be necessary to remember to pay the installments by the due date. There are two types of Social Institute funding for state employees: small loans and multi-year loans. These two different loan options differ first of all for the duration of the same, but consequently also for the amount that can be requested, interest rates, but also delivery times. In particular, it is easy to imagine how the times of disbursement of the small Government Agency loan are lower than those foreseen for multi-year loans, since the sum of money that the bank must provide is much lower.
Small Social Institute loans may have a duration of one year, two years, three years or four years. Each repayment plan will obviously correspond to a certain amount that can be requested, as for any form of financing on the market. In this case, determining the amount of money to which we will have access is not only the duration but also the salary received. For each year in which we decide to complete the reimbursement we will receive an amount equal to a net monthly salary. In the event that the customer has no other deductions in progress from his salary, this amount may also be doubled. Thus, in the case of annual loans, a sum of one or two monthly payments can be requested, for two- year loans two or four months, three- year loans three or six months, and four- year or eight-month loans for four-year loans.
Social Institute multi-year loans fall into two categories: we can choose between five-year loans and ten-year loans. The characteristics of the financing are practically the same that we have seen so far, so it is easy to imagine how the amount that can be requested will be considerably higher in this second case. So this form of financing is aimed at all those who need a fairly large sum of money, with the great advantage over other forms of financing to be sure that the repayment installments will never exceed one fifth of the net salary received.
Calculation of Government Agency-Social Institute loans for State Employees: tables 2019
We have therefore seen how the characteristics of Social Institute ex Government Agency loans for state employees make these products particularly attractive. Before proceeding with the request for any financing, our advice is always to request and calculate a quote. In the case of Social Institute loans there is not a real simulator like those that can be found on the websites of the main banks, however the same information can be obtained thanks to the Social Institute tables, which obviously derive from the old Government Agency tables but which have updated values. These tables are available on the handbook found on the Social Institute website. So let’s see how it is possible to calculate a cost estimate simply by using these tables. The first thing we will have to decide will obviously be the type of financing we are interested in. In the handbook there is in fact a table for each form of financing and for each duration available.
First of all, the first information we notice is that of calculating the interest rate. This, as we have already said, is different in multi-year loans compared to small loans. In particular, from the Social Institute handbook we note that small loans have a Tan of 4.25%, while multi-year loans have a Tan of 3.50%. This second financing option therefore provides for a lower interest rate. However, it should be stressed that this is an annual rate, therefore considering the entire duration of the loan the amount of interest foreseen for multi-year loans will be significantly higher than small loans. Once we have chosen the duration of our loan, we will only have to consult the Social Institute table for this type. The structure of the table is very simple, and will allow you in a short time to know the characteristics of the financing that will be offered by Social Institute. The first column of the table shows the gross amount of the loan. So to identify the characteristics of our financing we will simply have to look at the line for the amount we need. Obviously it is necessary to consider the same constraints as we have talked about above, for which therefore the sum that we are going to request will depend on our salary and the duration of the financing.
In the second column of the table is instead shown the repayment installment that we will have to face every month. This is undoubtedly the calculation that most of all will determine the choice of the solution that is right for us. For this reason another very useful way to use the Social Institute table is to fix the monthly repayment installment that we intend to deal with. As we have already said, since this is a loan with a transfer of the fifth, this can not exceed 20% of our net salary. So if you have not yet decided the duration of your ideal loan, our advice is to take a look at the characteristics of Social Institute loans that provide for your ideal installment, and then choose the one that allows you to get the amount of money you have need. Among other information that you find in the table there are the deferred interests. This amount refers to the interest accrued in the time that elapses between the date of payment of the sum requested and the date on which payment of the installments begins. The value shown in the table is only an estimate, which considers the average pre-amortization period equal to 45 days. So this is not a precise value, so it will not be particularly important in choosing the solution that is right for us. Another expense that we will have to face regarding Social Institute loans is that related to administrative expenses. This amount is also reported in the tables as it depends on the amount of money we are going to request. Regardless of the type of Social Institute financing chosen by us, the administrative costs will be equal to 0.50% of the amount that we will receive. Also in this case it is certainly useful information, as it allows us to get an immediate idea of the actual expenditure that we will face, much better than the simple percentage. At the same time, being a fixed cost for each duration, it is not a decisive factor in the choice of funding.
The information that could have the greatest influence on our choice, on the other hand, is that relating to the expenditure for the Guarantee Fund. These depend in fact on the age of the client, as well as on the duration of the loan itself. In the table you will find in fact four different age groups to which different rates for the risk fund will correspond. The rates can always be consulted on the handbook, in the relative table in which you will notice how the expense for the Risk Fund will increase as the customer’s age increases and the number of months in which we decide to complete the reimbursement increase. Therefore, in the Social Institute table for the product you are interested in, you will have to look at the columns for your age group, in which you will find the expenses related to the Guarantee Fund and the net amount of your loan. So based on the amount we need and the salary we receive, our advice is to choose the Social Institute loan that allows you to get the desired amount of money, repaying it as quickly as possible in order to save on the Guarantee Fund as well as on interests. We have therefore seen how through the Social Institute tables you can get all the information you need regarding the different solutions available, so as to choose the most convenient among those that meet our needs.