Renewal of small loan: times and conditions
Small loans are subsidized interest rate loans dedicated to public employees and retirees. Previously granted by Government Agency, subsidized loans passed on to Social Institute as of 2012, when the Monti government decided to abolish the institution for public administration pensions. But how can you renew a small ongoing Government Agency loan ?
The small Social Institute ex Government Agency loan can be renewed only on condition that a minimum amortization period has elapsed. This period varies according to the duration of the amortization plan for the small loan which can be 12, 24, 36 or 48 months. The interest rate is always fixed at 4.25% and the administration costs are instead equal to 0.5% of the gross amount of the loan.
But when is it possible and how to renew a small Government Agency loan? The loan renewal application must be submitted after at least six months of regular amortization for annual loans. While for the two-year and three-year loans the minimum period is 12 and 18 months respectively. The minimum amortization period necessary for the renewal of a four-year loan is 24 months.
When the loan is renewed, Social Institute concludes the previous loan agreement and recovers the residual debt on the amount of the new loan.
How early repayment of the loan works
The early repayment of the loan, on the other hand, is possible at any time, without the need to meet any requirement in terms of duration and the applicant is reimbursed the portion of the Social Institute Risk Fund for which the guarantee has not been enjoyed.
In the event of voluntary extinction, however, it is possible to request a new loan only on condition that the same times indicated for the renewal of the loan have elapsed. The early termination request must be sent electronically, using the online services on the Social Institute website. For more information on the conditions applied to small Government Agency loans, please refer to our in-depth analysis.