Facilitated Credit for Employees and Pensioners with the Direct Multi-year loans offer

What are multi-year loans

What are multi-year loans

Government Agency, as perhaps many of our readers will already know, no longer exists since it merged with Social Institute since January 2012. The latter is the social security institution to which the former Government Agency services were transferred, including credit lines offered on conditions facilitated. So let’s see together the main features of Government Agency direct multi-year loans.

Multi-annual direct loans are loans for public employees and pensioners and are granted exclusively to meet specific expenses. In fact, the sum obtained must be used for documented personal or family needs falling within those indicated in the Social Institute Loans Regulation.

The requirements

To access the Government Agency multi-year direct loan offer, you must first be registered in the Unitary Management of credit and social benefits. Another essential requirement is represented by the fact that the applicant must have at least four years of service usefulness for the pension and four years of contributory payment to the unitary management of credit and social benefits.

Workers are also required to have an open- ended employment contract. In the event of subjects registered with a fixed-term contract of not less than three years, it is still possible to access credit during the period in which the contract is valid with the obligation to assign the severance indemnity to guarantee the repayment of the loan.

Multi-year loan rate and amounts

Multi-year loan rate and amounts

The repayment period varies from a minimum of five to a maximum of ten years, or from 60 to 120 monthly installments. The size of the transferable portion cannot exceed the critical threshold of a fifth of salary or pension.

As regards the interest rate applied, we have a nominal annual interest rate corresponding to 3.50%, to which are added administration fees 0.50% and a risk provision premium, which varies in relation to the duration of the repayment plan. The refund process takes place starting from the second month following that of the disbursement.

How to apply for funding

How to apply for funding

How is the multi-year direct loan obtained? Once the required documentation has been attached, the request must be sent only electronically, through the online service, present on the Social Institute portal, “Multi-year Loans web applications”.

Those enrolled in the service must submit the application through the administration they belong to, while pensioners registered with the Credit Fund must submit the application electronically using the reserved area of ​​the Social Institute.it web portal (device PIN required).

Together with the application must be submitted documentation that can attest to the state of need and any expenditure, based on the motivation set by the Regulations (available on the Social Institute website), and a medical certificate of sound physical constitution.

The faculty to renew the assignment of the fifth is not provided until two years have passed since the start of the five-year assignment, or four years after the start of a ten-year assignment.

How to calculate the loan installment

How to calculate the loan installment

Those who wish to evaluate the convenience of the Government Agency direct multi-year loan proposal, before proceeding with the request, can take advantage of the special online service for simulating loans on the official Social Institute website.

To reach it, you need to connect to the official Social Institute website and from the home page choose the item “Access services” from the “ Online Services ” menu, at the top right. Clicking on “List of all services” displays all the services on the portal. At this point, it will be sufficient to choose the “Public Employee Management: simulation calculation of small loans and multi-year loans” function.

Procedure for online simulation

Once the service is reached, the user has the possibility to choose between three calculation methods :

  • loan simulation;
  • loan simulation for ideal installment;
  • loan simulation for specific amount.

To carry out the Government Agency simulation of direct multi-year loans, simply enter the required data in the form, after which the system proposes all the Social Institute loans accessible to the user, based on the data entered. The amount of the monthly installment, the interest rate and the various charges applied are indicated for each loan.

A mortgage is not a home loan

Most of us are used to calling our home loan a mortgage, but that is not an accurate definition of the term. A mortgage is not a loan, and it is not something that a lender gives you.

It is a security instrument you provide to the lender, a document that protects the lender’s interests in your property.

How does a mortgage work?

  • There are two sides to a mortgage. You are a mortgagee or borrower, and the lender is a mortgagee.
  • The mortgage document creates a lien on the property, which serves as a loan guarantee for the debt. The lien is recorded in public records, probably in your courtroom.
  • The ownership cannot be transferred to someone else until you have paid the debt to release the lien.
  • Even if your loan is secured by a mortgage, you still have full assets. No one else has ownership.
  • A mortgage gives the lender the right to sell the secured property to repay if you do not pay the debt. The sales process is called overdraft.
  • When a mortgage is used for security, the extent of the repayment must usually progress through the court system. This type of foreclosure is called foreclosure.

Deed of Trust

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More than half of the states in the United States use mortgages as collateral. Other states use the trust that serves the same purpose, but with a few important differences.

  • True trust is a special type of business that is recorded in public records, where everyone is told that there is a lien on your property.
  • The trust certificate includes three parties. You are the creditor, the beneficiary is the beneficiary, and the third party is the creditor – someone who holds a temporary (but not full) title until the pledge is paid.
  • The trustee should be a neutral third party, someone who will dislike neither you nor the lender if the problems escalate. In some states, attorneys act as trustees, and in other cases, insurance companies often provide the service.
  • The commissioner cannot take your property for no reason – there are documents protecting it.
  • True trust is canceled when the debt is repaid.

Differences between a mortgage and a trust

Differences between a mortgage and a trust

The differences between a mortgage and a trust only affect home buyers when foreclosure is a problem, as the trustee has the authority to sell the home if your loan becomes the default. The lender must provide confidential proof of delinquency and ask the trustee to initiate foreclosure proceedings.

The trustee must move forward as permitted by law and as dictated by your trust, but this process bypasses the court system, making it a much faster and cheaper way to stop the lender.

You cannot choose how your loan is secured, it is determined by where you live, but it is important to understand the type of pledge that provides debt for your home.

How To Apply For A Loan In advance – What Do You Need?

 

What do you need to get it right?

Whether you need money for a home, car or credit card, advancing your credit makes things easier. You will know how much you can spend, you will be in a better position to negotiate and understand the cost of your loan before you end up in something that you cannot afford.

How are you pre-approved for credit? Gather information about your finances and the credit you need, and submit an application.

Follow the steps below to make the process easier.

Manage your credit

Manage your credit

Your credit is crucial for almost every loan. Unless you get a payday loan (which is probably not a good idea), lenders will look for a borrowing history. Make sure that they – and you – will not get any nasty surprises when this happens.

Familiarize yourself with credit: Your credit is one of the most important factors for getting pre-approved. Understand how it works and what lenders are looking for.

Check your reports: Order your credit reports to see what they contain. This is free for all consumers – once a year, you have the right to see your credit reports from every credit bureau. Take a look at the report and see if there are any delays or errors in the reports.

Fix errors: If there are errors in your credit reports, correct them. The Federal Trade Commission reports that five percent of consumers have errors in their reports.

While this number is not inconvenient, the consequences of a mistake are dire and can ruin your chances of borrowing. Report errors to the credit bureau and any lender reporting the error. Learn more about bug fixes.

Choose a lender

Choose a lender

At this point, you are ready to shop for lenders. You probably only need to get approval from one lender to start a purchase (and using a letter of recommendation as leverage), but it is worth comparing the cost of the loan between several lenders. You are not required to use a lender that is too loud for you, but you can still go through the process with the lenders that offer the best terms – otherwise you will have to do it all the time.

Check with different lenders: Include several lenders – and several different types of lenders – when searching. Try a bank and local credit union for home, car and credit cards. For personal loans, be sure to include an online lender or P2P lender (they often have competitive rates and are sometimes willing to work with borrowers who have less than perfect credit).

Get complete information on how much you will pay, including:

  • Origin or processing fee
  • Interest expense (is the variable rate or fixed?)
  • Calculation penalties, if any
  • Annual fees

Are you pre-qualified? For credit cards, some lenders keep a list of borrowers who are “pre-qualified.” If you are on that list, there is a decent chance that the lender will want to work with you. However, there is no guarantee that you will be approved – you still have to submit an application and the lender may find something they do not like. That said, there is at least something in the database somewhere that the lender likes for you. If you are not pre-qualified with a particular lender, you can still apply and see what they say.

Apply for a loan

Apply for a loan

Once you’ve chosen a lender and got ready, it’s time to apply. There is only one way to find out how much you can get: complete the application and wait for a response.

The answer may come quickly, or it may take longer. Answers for car loans can appear more or less immediately. Home loans can take a long time and lenders are looking for a seemingly endless list of documents. This means that some lenders often shorten one-time payments when you get pre-approval, so the process is usually faster than completing it completely.

False hope? Keep in mind that some lenders claim to override you without really looking at your finances. Failure to raise a loan or ask for your income is a bad sign. For recognition to mean something, they should really evaluate your credit. It doesn’t do you much good to get “pre-approved” just to find what you need to get started (because you can’t borrow nearly as much as promised).

To avoid this problem, work with reputable lenders – banks and credit unions in your community, as well as legitimate online lenders. Avoid men at night and anyone who claims “we approve of everything”.