Buy a used or new car: how do social security ex government agency loans work?
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The social security ex-government agency members, who are also members of the “Unit Management of credit and social services”, can obtain financial aid, in the form of an government agency loan for the purchase of the car. This possibility extends to both the new and used car categories, and there are two possible alternatives (depending on the cost and type of car to buy).
The small government agency loan
Since this is a loan of limited amount and duration, it is better suited to buying a used car or if you need a smaller part to be financed. In this case you can choose between 12 or 48 months, at a rate of 4.25%. Since this is a personal loan, it must not be justified with additional documentation. This is a system that overcomes the limits of accessibility which are instead introduced for the specific form of long-term government agency loan which provides, among the possible causes, also the car purchase).
The long-term government agency loan: maximum 60 installments
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In case of car purchase you must have the following mandatory requirements:
- seniority of at least 4 years;
- a period of payment to the unit management fund, equal to 4 years.
The amount of the installment will be determined by: fixed rate 3.50%, plus operating expense of 0.50%, plus the share of the risk contribution reported in the appropriate tables. Obviously the entity of the installment will also be affected by the duration chosen to repay the requested sum.
As mentioned, unlike the small loan, you must document the purchase that you make, presenting the quote issued by the dealer (if it is a purchase with return or sale to the dealer of a car owned by the applicant of the loan, you must specify it in the quotation itself), together with the applicant’s self-certification.
The maximum amount funded is 20 thousand USD (according to the last regulation approved in October 2011), but before delivery, once obtained the communication with which the competent administration communicates that the go-ahead has been granted, the document must be shown authenticated certifying that the payment of the sum equal to 10% of the budget.
If it is a modified car for health or welfare issues (see also Loans for disabled and handicapped people ), it can also be purchased for a person linked by family ties (giving proof of both kinship and medical certification), adding the estimate that shows the ‘extra’ expenses to be incurred.