The INPDAP guaranteed multi-year loan is a loan, provided by financial companies and not directly by INPDAP, where the latter guarantees, under certain conditions, the correct repayment of installments by the applicant.
Characteristics of the multi-year Loan guaranteed INPDAP
The loan consists of a fifth of the salary and has a duration of five or ten years. This period may be shorter if the applicant, who must be an employed employee, is close to retirement. In this case, the duration may not be longer than the years remaining before retirement. The installment amount must be a maximum of one fifth of the net salary. On the basis of this value and the chosen duration, the value of the loan is determined and the following expenses are deducted at the time of disbursement:
– administration fees: 0.50% of the amount disbursed
– the administrative costs and interest provided by the financial institution that issues the loan
– a premium for risk of insolvency of 1.50%, in the case of loans of 5 years, or 3% for the ten-year loans.
If the retirement age is more than 65 years, the shares of the insolvency risk premium should be revised upwards, increasing from 1.50% and 3% to 2% and 4% respectively.
Early repayment is achieved.
Inpdap guarantees guaranteed multi-year loans in the event of:
– death of the applicant
– termination of the employment relationship prior to retirement
– decrease in the income (salary) of the applicant
Who can request the guaranteed multi-year Loan