How to access loans on assignment of the fifth sale
In sale, requests for personal loans increase. This was confirmed by the CRIF Barometer referring to the first half of 2015, which recorded an increase in requests for personal loans in Sarerdegna equal to 5.5%. But how to access credit?
The assignment of the fifth is a particular type of personal loan dedicated to employees and retirees. A feature that distinguishes the transfer of the fifth from the other credit lines is that the repayment of the installments takes place by the beneficiary ‘s employer, or by the reference social security institution (in the case of a retired applicant).
The employer, or the social security institution, deducts the installment from the monthly salary or pension check and pays the sum to the creditor bank. As for the amount of the installment, this cannot exceed the fifth part of the salary or pension after tax. The interest rate is fixed and the amortization plan is in constant installments. Furthermore, the term of the loan agreement cannot exceed ten years.
Requirements for the sale of the fifth sale
For access to credit, it is essential that the applicant meets certain requirements. For employees, an indefinite-term employment contract and a minimum length of work is required, which varies according to the criteria established by the insurance company that provides the credit coverage policy.
As a general rule, for private sector workers, the company where the applicant is hired must also meet eligibility criteria. In most cases these are requirements relating to the number of employees, or to the company’s share capital (which must be greater than a pre-established minimum). Obviously, these controls on the employer are not necessary for the subjects belonging to the public sector.
Guarantees for the sale of the fifth sale: TFR, pension and insurance policies
Thanks to the particular structure of the financing, no real guarantees are required, such as lien or mortgage rights. However, the operation is guaranteed by the presence of the TFR accrued by the employee or the pension due. Elements that protect the credit institution against the risk of job loss, accident and death of the debtor before the complete repayment of the debt.
The current legislation also establishes that, at the same time as the loan agreement is signed, the transferee must also take out compulsory insurance coverage against life and employment risks (the latter only for employees). The aforementioned policy guarantees, in the event of non-payment by the employee, coverage of the amount still due in excess of the TFR.