Loan for newborns: history, requirements and application
The birth of a child, although it is a happy event, certainly leads to various expenses that often, especially in this period and for some families, can be difficult to deal with.
To help out families, the Department for Family Policies has established and activated a “Credit Fund for Newborn Babies”.
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Taking a step back, we will remember that, initially, the so-called economic contribution was only for those born in 2009-2010-2011. However, the 2014 stability law provided for a three-year extension. The same thing happened in 2015 with the new stability law, which once again provides for an extension of all the concessions of the previous year, bringing news and refinancing some proposals.
The loan for newborn babies now, or the Astro Finance, calling it with the correct name, has been reintroduced and concerns the possibility of receiving a subsidized loan for newborn babies and for children adopted in the 2015/2017 three-year period, no longer a check as it was before.
The credit fund for newborns is not like in the past, with a non-refundable fund, but a real favor allowed for family credit. The Stability Law, in fact, grants a loan of 5 thousand euros to new parents, to be repaid within five years. It must be said that this is possible precisely due to the fact that the aforementioned law has allocated 30 million euros which should go to the aid of young families.
It is possible to apply for a loan for one child or one for each child, which will always be USD 5,000 for each child, with the term of surrender always being five years. Unfortunately, however, the lenders can decide whether or not to give the loan while evaluating the guarantees shown through the applicant’s documents, as they only allow a facility and not the total certainty of the loan.
In any case, according to an agreement between the Government and ABI, the Italian Banking Association requires banks to maintain a very low-interest rate and a fixed Taeg.
Although approved, the new provisions are still being updated, given that the law was implemented and made public only in May 2015.
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How the loan for newborns works and who can access it
All those who exercise a podestà homeland by applying by June 30 of the year following birth or adoption can access the credit for newborns.
Regarding the adoption, we speak of both the national and the international one. As regards national adoption, reference is made to both the pre-adoption measure and the actual adoption.
With regard to international adoption, reference is made to the authorization and residence of the child both for Italy and for foreign countries.
All families who need it can access the fund, as there are no income limits. However, the credit can be used for all goods or services dedicated to children. The child’s permanent residence is issued by the International Adoptions Commission.
The State, however, guarantees through this Fund 75% of the entire sum of the loan requested if the ISEE header proves that the family income is less than 15 thousand euros per year. Otherwise, i.e. if the ISEE is higher than the said amount, the State guarantees 50% instead.
This means, therefore, that it is the Bank itself to admit the guarantee of the Fund by agreeing with the applicant the financeable amount, which can vary from 1000 to 5000 euros and the time of repayment of the same in monthly installments. The debt can, however, be extinguished in a single solution and, in the event of default, the normal procedures for the recovery of the credit are applied.
In the event that the concession was determined through false statements, the loan will be revoked.
How to apply for the subsidized loan for newborn babies
The application for the newborn loan must be submitted to one of the member banks that can be consulted in the list of the New Born Fund. You must complete an application through a form provided by the bank itself stating:
– their personal details and those of the child, both born and adopted (in the latter case, all the details of the adoption order must be communicated), then Name, Surname, Tax Code, Date and Place of birth;
– specify and certify one’s country of authority and whether it is exercised alone or with another person. If parental authority is shared, it is necessary to communicate the identity of the other party and declare that only one loan is required for a dependent minor.
The important thing that remains to be said is that there is no restriction on the loan application whether the parents are EU citizens or non-EU citizens who have a regular residence permit. In any case, the bank will accept the guarantee and evaluate the granting of the loan based on the length of the stay.
Families who have a child with rare diseases have an additional contribution which reduces the interest rate. In this case, a medical certificate attesting to the actual illness of the child must be attached to the application.
What kind of financing to choose?
Although with the new procedures, we are no longer talking about a lost fund but about a personal loan in all respects, it is always necessary to ask your Municipality or your Region what the conditions are for obtaining both the one and the other in order to have clearer ideas on what to do. Please note that, in the case of the non-refundable bonus, the amount of which reaches up to USD 1,500, the sums obtained must not be returned.
As we have seen, with the newborn fund it is possible to receive a loan of up to USD 5 thousand without justifying the use of the sum requested precisely because this type is part of personal loans.
Finally, please note that any financing is chosen, given that the State offers a guarantee to sweeten the preliminary investigation procedures, it is always better, even if not mandatory, to pay off any debt before starting any request.