The loans of the Armed Forces work in a similar way to the loans granted to public employees by the INPS, National Social Security Institute. The INPS, in addition to managing the Italian social security system, in fact took on the responsibility of the former INPDAP, which handled all the procedures relating to public employees. What is now defined as “INPS ex-INPDAP” today also deals with providing funding to public employees or retirees who request it. Among the public employees there are obviously also those who are part of the Armed Forces, who can thus take advantage of some conventions : Italian Army (EI), Navy (MM), Aeronautica Militare (AM) and Arma dei Carabinieri (CC).
The grants loans to the members of the Armed Forces in two ways
the Institute can issue the credit directly, through the salary-backed transaction, or through banks or affiliated financial companies. In the first case, the fifth assignment provides for the payment of monthly installments to be made by debiting the beneficiary’s current account and the amount cannot exceed one fifth of the monthly amount received by the employee or pensioner. This means that the installment will never be higher than 20% of the salary or pension.
The INPS offers three types of subsidized loans in the context of Public Employee Management. The Small Loan is intended for pensioners and workers who are enrolled in the unitary management of social and credit services, also known as the Credit Fund. This is a small loan, repayable in monthly installments, through a deduction directly on the salary or pension. In its operation, the Small Loan is managed as a traditional personal loan (therefore it does not require a specific purpose) and provides for various possibilities of duration, from 1 to 4 years.
The second opportunity is the Multi-year Loan of Public Employment Management, always paid directly by the INPS. Also in this case, to access this form of credit, you must be an employee or a pensioner registered in the Credit Fund. The difference with the Small Loan is that the Multi-year Loan is a finalized loan, ie it is paid to support specific personal or family needs: the applicant must therefore specify which use he wants to make of the amount received, unlike what happens with personal loans. The reimbursement takes place, however, always through a deduction not exceeding one fifth of the pension or salary.
Finally, there is a typology of loans to the Armed Forces which is granted by credit institutions that have entered into an agreement with the INPS: these are the Guaranteed Multi-year Loans .
For those who are registered, this loan is easier to obtain than the one at a bank, because the INPS guarantees the institution against the risk of death, termination of the service without a pension and a reduction in salary. Unlike other loans, in order to obtain the Guaranteed Multi-year Loan, you must still be in service.