Regional, subsidized loans to help children study at the University

Good news for the employees of the Sicilian Region who can enjoy subsidized loans to help their children enroll in university and allow them a good study plan. To allow it was the extraordinary commissioner Falvio Bellomen, who signed the regulation published by the Pension Fund, which in turn was approved by the Finance Law.

The offices explain that the funds had been available for some time thanks to the Region’s pension fund, where the contributions from the regions end, the novelty now is that new opportunities have arisen and the Fund can provide two types of subsidized loans : those for general purposes and that to allow a course of study and enrollment in the university of their children.

General subsidized loans and university students

General subsidized loans can be of two types: based on duration and amount. With regard to three-year loans, they can not exceed the threshold of 10 thousand euros. The six-month Interbank rate with a rate of 200 points is applied to the subsidized amount. Let us not forget the “penalty” that the employee will suffer. In fact, it will pay a withholding tax of 0.50 percent for administrative expenses, while 1.5 percent will be a contribution to a risk fund.

According to the offices of the Fund is a low penalty compared to all other loans that come to 6.7 percent, compared to four percent of this type of subsidized loans. For those who want something different, there is a multi-year subsidized loan, to be reimbursed by deduction from salary or pension. It can also be requested by the employee who has a fixed-term contract of not less than 3 years. The duration varies from 5 to 10 years and an amount exceeding 40 thousand euros can not be requested.

The annual interest rate of the six-month Interbank plus 300 points is also applied here. There is also a one-off payment of 180 euros for administrative expenses and 1.50 percent of the contribution to the provision for risks. It definitely improves the condition for employees who need to enroll their children in university courses, post-graduate courses or internships.

Soft loans for university students

The situation changes for the better, in fact on the gross amount the six-month Interbank rate is applied with an increase from 100 points up to 400, variable rate based on the monthly net salary received. For those who earn up to 1,500 euros the best conditions exist, above the three thousand euros the rate rises to the maximum.

In this case the duration varies from 5 to 10 years and at most the loans can reach 20 thousand euros. Rolando Gregorio, manager of the Fund, explains that new opportunities are being considered for the regional authorities and to make them even more easier on loans, he concludes by saying: “Soon we could launch the sale of credit on the mortgage already issued by the banks. Those who retire today did not have a good leave. So a regional early retirement at 61 will have to wait until the age in which the requirement will mature, ie 67 years, then two years since the choice was voluntary and finally the sum will be paid in three tranches. The sale allows you to get a good result immediately in exchange by paying an interest rate “.

Take out credit: In 9 steps to the wish loan

4. The annual percentage rate

The current low interest rate phase is a gift for borrowers. As a result of the financial crisis, the European Central Bank under Mario Drake has lowered its key interest rates drastically. Rarely have the interest rates been cheaper than in recent years! Before you decide on a loan, go through the following points in turn.

1. The amount of the loan

In many cases, the loan amount is insufficient. It requires an expensive refinancing. Expect more expenses from the beginning. If less money is needed, you may be able to repay the loan sooner. Of course, you should also consider your savings. The more money you have in the back, the tighter you can calculate.

2. Financial capacity

A loan is repaid in monthly installments. These should be able to serve them to avoid a debt trap. How much money is available to you each month? A single may be more generous than the family man. If you have two children, you can not just change the apartment for rent reduction.

Rule of thumb: About three net monthly salaries must be in reserve on your call money account.

The funding plan should include a longer illness or unexpected unemployment. With low installment loans, no such detailed planning is necessary. Here it is sufficient to roughly skip the financial conditions. If you already have several loans with expensive terms, rescheduling could be beneficial.

3. House bank or online loan?

3. House bank or <a href=online loan?”>

In the store higher prices are required. The bank has to pay rent and staff, which does not apply on the internet. Thus, direct banks can offer more favorable interest conditions, from which you benefit as a customer. Some of them even advise you by phone to solve even complex credit issues.

Tip: In the end, the low interest rates speak clearly for the online loan.

The only advantage of a branch bank is a local contact, which you no longer need after graduation. Modern online banks can be reached almost around the clock while you need to make an appointment with the regional consultant.

4. The annual percentage rate

The effective interest rate indicates the total burden on the borrower. Therefore, this indicator is crucial for the choice of the loan.

Some chain stores try to lure advertisers with low offers, but caution is advised. Often this is an interest rate that is only granted to those with a high salary. When applying, criteria such as the Schufa score and the personal credit rating can have a negative impact on the annual percentage rate of charge.

The effective interest rate is made up of these factors:
– Processing fees
– Disagio (discount) and agio (premium)
– nominal interest rate
– Premiums and commissions

5. Duration of repayment

5. Duration of repayment

The term of a loan is up to you. Think about your financial circumstances: Extend the repayment to several years, the monthly burden is limited. On the other hand, the interest rates are a little higher than if you opt for larger monthly installments.

Try to pay off all debts until retirement. Focus on the term of long-term loans on the expected retirement date.

6. Smart fixed interest period

It pays to think about the fixed interest period. Within this period, the interest rate is fixed. That can be 5, 10 or 15 years. Depending on the offer shorter or individual deadlines are possible. In a low-interest phase, the longest possible fixed-interest period is recommended. If interest rates rise after a few years, take advantage of your cheap loan. The ECB is currently pursuing a policy of low interest rates, but that can change at any time.

If the interest rates are cheaper after 12 years, there is a simple way out: The legislature offers you the possibility of rescheduling. After 10 years you can get out of a loan without prepayment penalty. Since the bank can not do anything about it, because that is valid German law.

7. Additional special repayments

7. Additional special repayments

Longer durations should be associated with special repayments. These are payments that reduce the debt by up to 5 percent annually. This way, you can repay the loan more quickly so that you no longer have any debts. Whether you use this option is entirely up to you. If you have other expenses, you can waive the special repayment.

8. Save processing fees

Some banks charge up to 2 percent on installment loans. That does not have to be, because there are also toll-free offers. Alternatively, a pro rata reimbursement for early installment loan repayment is possible.

9. The best conditions

To get the right offer, you need to make a credit comparison. He helps you to find the optimal conditions. Important key figures are the loan amount, the repayment start, the terms and the amount of the monthly repayment installment. Always use the same ratios for a credit comparison.

Tip: As a basis, you should choose the effective interest rate because it includes all charges. Some banks advertise with low debit interest, but hidden ancillary costs may be included here.