Loans for state employees
A state employee is a worker employed by state, central or local public administrations.
As for civil servants, necessar financing is also available for this category. This is a great opportunity, because banks and financial companies offer very convenient solutions, especially in the area of salary loan.
The salary loan is a specific type of loan that allows you to repay the loan installments directly withheld from your salary.
This formula, introduced with the DPR 28 July 1950 n. 895, provides that the installments do not exceed one fifth of the salary amount, net of withholding tax.
The salary loan is therefore distinguished from mortgages and other types of financing, because the installment is determined first and only then the possible payable amounts, depending on the duration of the loan.
The advantage of loans for state employees
The loan has the characteristic of being attractive from an economic and managerial point of view. One of the advantages of this type of financing is that it requires few guarantees, since it is the salary that provides the main source of solvency for the bank and moreover these loans are also easily disbursed to bad payers.
From an organizational point of view, the presence of fixed and constant installments over time allows long-term planning of the budget, to the advantage of the family’s choices.
Loan access requirements for state employees
To access this type of financing, the following characteristics are required:
- Minimum age 18 years
- Permanent employment
The necessary documents are:
- A valid identity document
- The tax code
- The last paycheck
- The Single Certification (ex CUD) The Salary Certificate or Service Certificate
The few guarantees required
No special guarantees are required to apply for this type of loan: the salary guarantees the customer’s solvency.
By law, all loan agreements must contain certain information, aimed at ensuring maximum transparency and helping the client to be adequately informed.
Among the main elements of the contract we find:
- the interest rate applied;
- any other prices and conditions applied, including higher charges in the event of late payment;
- the amount and methods of financing;
- the number, amounts and due dates of the individual installments;
- the annual percentage rate of charge (APR);
It is possible, according to the provisions of the legislation, to pay off the debt in advance by paying the amount of the residual debt.
Depending on the type of contract, there may be an early termination penalty which normally cannot exceed 1% of the residual capital.
If a contract is canceled early, it must be considered that the preliminary costs and stamp duty will be lost while it will be possible to partially recover the commissions.