Small Payday Loan, How Does It Work?
The small Payday loan is a form of financing that allows the former Payday / SW Bank member to get hold of a sum of money that can be freely used to meet financial needs. Loans, granted within the limits of the budget available, which are provided annually for the IS Finance and social services (SW Bank absorbed the functions previously assigned to the Payday Loan) are paid at advantageous conditions.
Who is the small Payday loan aimed at?
The small Payday loan is aimed at all employees and public pensioners who appear to be regularly enrolled in the unitary credit and social services management. Therefore, the small Payday loan can be used by employees and public pensioners.
How is the small Payday loan repaid?
The small Payday loan can be repaid within an amortization plan of between 12 and 48 months (the member can choose the intermediate durations of 24 or 36 months), with constant installments, consisting of a capital share and from an interest rate.
How to apply for the small Payday loan?
Getting the small Payday loan is not difficult. Subscribers in service activities (ie, employees) will only have to request an application from their institution. The application, once completed, must be submitted exclusively through the Administration of belonging, which will forward it electronically to the pension institution.
The procedure for retired members is similar, and once they have obtained the forms, and once the application is completed, they must send it electronically, based on the presidential determination in force).
Bear in mind that the small Payday loan is not tied to specific justifications of expenditure. Therefore, the member to the unitary management will not have to proceed to attach other documentation, as for example occurs in relation to weighing estimates.
How much can you get with a small Payday loan?
The amount of the small Payday loan depends essentially on the number of installments in which you want to repay the capital.
Therefore, for loans with a duration of 12 months , the maximum amount of the small Payday loan can be equal to the average net monthly salary or pension. In the event that the applicant does not have any further deductions in progress (for example the salary or pension transfer), a sum can be requested equal to a maximum of two months, with the limit of the transferable fifth for pensioners only.
In the event that the small Payday loan is required for 24 months, the maximum amount that can be requested can be equal to two average monthly salary or pension monthly payments. Also in this case, we remind you that if the member does not have any withholding in progress for salary-backed loans, he can ask for up to double (four months), with the limitation of the transferable fifth for the pensioner only.
For loans with a duration of 36 months , the maximum amount that can be requested with the small Payday loan can be equal to three average monthly salary or pension payments. The hypothesis of requesting the double, up to six months, remains in the hypothesis in which the applicant does not have any assignment or withholding in progress (as well as the limit of the transferable fifth for pensioners remains unchanged).
Finally, with regard to loans with a term of 48 months , the maximum amount that can be requested will be four average monthly payments. In the event that the applicant has no other deductions or assignments in progress, the amount can be raised up to eight average net monthly payments (with the limit of the fifth transferable as far as it relates to pensioners).
Under what conditions can the small Payday loan be obtained?
We remind you that the small Payday loan can be obtained at a particularly advantageous interest rate, currently 4.25%. There are also administrative expenses of 0.50%, as well as a risk fund bonus from time to time established by a regulation of the social security administration.
Something else to know …
In conclusion of this study of ours, we recall how the credit of the service takes place through a credit institution indicated by the applicant. It is also possible to request the renewal of the small Payday loan after the minimum months of the amortization period have passed, equal to 6 months for a small loan of 12 months, 12 months for a small loan of 24 months, 18 months for a small loan of 36 months and, finally, 24 months for a small loan of 48 months.
Lastly, it should be remembered that in the event of the debtor ‘s death, or of absolute or permanent disability due to service, occurring after the financing contract, the administration will not proceed with the recovery of the remaining debt.
If the employee chooses to work under a different administration with respect to the original one (that is, the one who had processed the loan application), the office that made the monthly deductions will communicate the loan data again, the account of the withholdings and payments made to SW Bank Public Employees Management.