The INPS loans are loans for public employees and pensioners who have worked in the public sector. In particular, this type of loan went under the management of the INPS (National Social Security Institute), after this body incorporated the functions of the INPDAP, which dealt precisely with welfare for public employees. Today, the reference point is the Unitary Management of Public Employees: the first requirement to obtain a loan from the INPS is precisely the registration in this register.
The loan offers a variety of financing, from short-term loans to multi-year loans
However, one of the most requested activities relates to loans for retired former public employees. There are two ways to access this loan: a direct loan from the INPS or the sale of the fifth. Let’s see how this last option works.
The sale of the fifth takes its name from the practice of calculating the monthly repayment installment of the loan received as if it were equal to one fifth of the pension that is paid each month to the former worker. This is a measure to guarantee that the installment never exceeds a precise figure, equal to one fifth of the monthly pension (20%). In this case, the loan will be the result of an agreement between the Institute and the bank providing the loan. As for the reimbursement, INPS will pay the installments and then retain the fifth from the pension.
However, there are some clarifications to be addressed regarding these loans
First, given that the fifth sale provides that the bank relies on the intermediation of the INPS, which ensures the solvency of the pensioner, usually the conditions of access to credit are in any case slightly stiffer than normal, providing for example a maximum age that can be requested, usually 75 or 80 years. Moreover, the calculation of the installment must always consider the economic health of the pensioner: if his monthly allowance, deprived of the fifth destined to the installment of the loan, falls below the threshold of the minimum pension, that financing will have to be reviewed and adjusted.
Not all public pensioners can apply for this particular form of INPS loans with salary-backed loans. All those who receive one of the following transfers are excluded:
- social pensions;
- social checks;
- civil disability;
- allowances for assistance to pensioners for disability;
- income support checks;
- allowances to the family unit;
- pensions with co-ownership of the part not registered to the borrower.