Bank loans with the assignment of the fifth

Bank loans can be used to obtain liquidity. It is good to know, in any case, that there are different types of financing. In bank loans with the assignment of the fifth, for example, it retains the repayment installment directly from the salary or pension up to one fifth of the amount credited.



This is a particular type of bank loan that provides for withholding the repayment installments directly from salary or pension.

TYPES OF BANK LOANS
To obtain liquidity and start a project, or respond to a sudden expense, Italian consumers can compare the most convenient loans to obtain money for a repayment with interest rates established by contract.

Bank loans with the assignment of the fifth



Credit institutions offer clients different types of loans, depending on the purpose of the loan or the profile of the applicant. The transfer of the fifth is a type of loan that is paid to employees or retirees who can demonstrate to the bank that they have constant economic income.

Other types of bank loans are loans for the purchase of a good or service or a simple personal loan which, on the other hand, does not provide for a specific purpose of investing money.

BANK LOANS WITH ASSIGNMENT OF THE FIFTH: HOW THEY WORK
As already mentioned, the sale is a particular type of bank loan for employees or pensioners. The main feature of this type of financing is that the repayment of installments takes place through a direct deduction by the bank on the salary or pension of the client, while for traditional loans the amount is paid periodically by the customer to the bank.



THE ROLE OF THE EMPLOYER
If the loan with the transfer of the fifth is granted to a private employee, the employer will pay the repayment to the bank withholding, by mutual agreement, the amount of the loan installment from the payroll of the employee.

The loan installment may have a maximum amount equal to 20% of the salary (to be assessed net of withholdings). The same applies to the transfer of the fifth of the pension and, in this case, it will be the responsibility of the social security institution to pay the installment provided by the bank every month.

WHO CAN APPLY FOR A LOAN WITH A TRANSFER OF THE FIFTH
The loan is payable to all employees, including new recruits with at least three months of payroll. Generally, the necessary condition is that the applicant has a permanent contract, but in some cases it is possible that the loan is also granted to temporary employees, provided that the duration of the loan does not exceed that of the employment contract.

The assignment of the fifth is also granted to pensioners registered with social security institutions but, in this case, the installments must be fully paid within the eighty-fifth year of age.

CONTRACTUAL CONDITIONS OF THE ASSIGNMENT OF THE FIFTH
Loans have a minimum duration of 24 months and a maximum duration of 10 years. The provision of this type of financing requires the stipulation of a life and employment risk insurance, which protects the credit institution against unexpected events that prevent the customer from extinguishing the loan.

ASSIGNMENT OF THE FIFTH: A LOAN ALSO FOR BAD PAYERS AND PROTESTED
The loan in this way is a type of financing considered safe by the lenders because the deduction on salary and pension considerably limits the risk of insolvency of the debtor. For this reason this form of credit is also accessible to users who are protested or reported as bad payers.