Public employees can apply for loans directly to the INPS employee management section, this is the new name of the former INPDAP since 2012.
The new INPS section allows public workers, public pensioners and their families to obtain low-interest loans, and therefore at cheaper conditions than the market. First of all, we point out that there are two types of INPDAP loans for public employees: one provided directly by the INPS section for which it is responsible and one provided by the institutions (banks and financial institutions) that are in agreement with the INPDAP.
Loans for public employees that are paid directly by INPDAP are subject to the limitations of the Credit Fund, and therefore can be paid only on the basis of the limits of the annual fund which can change from time to time. Once the availability of the credit fund is over, the institution no longer provides loans.
The INPS loans are reserved for public employees, therefore for public and retired workers who are in writing at the INPS Public Employees Management, those registered with the Magistral Assistance Management (formerly ENAM) and employees of Poste Italiane SPA Group companies.
The INPS loan for public employees is at a subsidized rate, and is paid in the form of salary-backed loans in the case of employees, of a pension in the case of pensioners.
As per name, therefore, the salary installment cannot exceed 20% of the net salary.
Let’s see the main types of INPS loans for public employees:
- Small Loan . This is an INPS loan for short-term public employees, from one to four years maximum, issued directly by INPS and open to public employees. The loan is not finalized, the TAN varies from year to year and the monthly payment is constant. You must also pay the risk fund premium and the 0.50% administrative fee. The amount is calculated based on your monthly salary, following the fifth assignment rule.
- Direct Multi-year Loan . It is an INPS loan for public employees that is directly paid by the INPS only to those who have a permanent or fixed-term contract of at least three years. This is a finalized loan, so its purpose must be declared. The interest rate for 2017 is 3.50%.
- Guaranteed Multi-year Loan . This is an INPS loan for five-year or ten-year public employees that is provided by banks that have an agreement with the INPS and is made by means of a salary-backed one. The interest rate varies depending on the credit institution that is taken into consideration.