Loans regulation: the various forms of financing

The regulation of loans was a useful document which collected all the information on the types of credit offered by this public body.

The regulation of loans was a useful document which collected all the information on the types of credit offered by this public body.

Today, the functions of the have been absorbed , the National Social Security Institute. The credit management includes all the forms of financing that still guarantees to public employees or pensioners. The fundamental requisite for being able to take advantage of these credit treatment is the registration to the Unitary Management of Public Employees.

When it was still published, the mortgage regulation described the main categories of funding provided by the institution: small loans and long-term loans, which still exist today. The small loan corresponds, depending on the consumer’s choice, to 1, 2, 3 or 4 months of his income: salary from public work or pension. As the name implies, these are small loans, very useful for overcoming temporary economic difficulties or sudden liquidity shortages.

The small loans provided today then provide for different amortization plans, depending on the amount received on loan: if a monthly payment has been obtained, it must be repaid in 1 year, if two months have been received, the reimbursement will last 2 years and so on. An interest rate is then paid to the bank which, in agreement , actually provides the loan: the nominal annual rate currently consists of 4.25%. You must then pay tax rate for administrative expenses, equal to 0.5%, plus a quota to be quantified to be allocated to the Risk Fund.

The regulation of loans provided instead that the financing for the purchase of a property on favorable terms could be used only to buy a house used as a first home. Interest rates were however subsidized and were usually fixed, hovering around 3.75%. If instead a variable rate mortgage had been chosen, the starting index would have been 3.50%, to then follow the trend of the Euribor. Today, manages this type of credit as well.

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