Among the most popular types of loan, we undoubtedly find those through the transfer of the fifth. Among the elements that give this product a leading role are undoubtedly simplicity of management, but also economic convenience. Let’s go into more detail and analyze the characteristics of this type of loan, which is managed by almost all banks and financial companies.
How does it work
The loan through assignment of the fifth is a type of loan that is granted to employees of the public or private sector, even if protested or bad payers, to fill their need for liquidity and therefore to support any type of expense. This is a loan that is usually granted very quickly, since the analysis of the subject’s credit profile is essentially based on the existence of a paycheck and on the absence of any other loans that could affect the ability to repay the loan.
During the request phase, therefore, in addition to the traditional identity documents, it is advisable to present the documentation relating to your employment contract. One of the peculiarities of the product, lies in the need for the employer to pay the installment directly, reducing it from the subject’s paycheck for an amount that will in no case exceed 20% of the net total of the paycheck received.
The solution for public or private employees
In the case of employees in the public sector, the loan generally covers a maximum of 50,000 USD which can be repaid in 10 years. Although the various banks are given ample autonomy in this regard, the possibilities offered do not differ much from these values. The reimbursement, as mentioned, will take place in fixed installments paid directly by the employer, without therefore obliging the subject to deposits and wire transfers that have their cost.
If, however, you are in front of private employees, you will need to hire the person indefinitely. Again, the loan is requested directly from the bank or finance company, but the employer will then take care of the individual installments.
The possibilities for atypical workers and the loan with delegation
But what happens if a person with a term or atypical contract wants to resort to this solution? Workers of this type can have access to this type of financing only and exclusively in the event that the balance of the last installment is expected to be earlier than the one in which the contract is expected to end.
In some cases, or if there is a need to request an amount greater than 20% of the monthly salary, it is possible to opt for a loan with delegation. With this solution a second deduction is in fact added which will lead to a deduction which can also be equal to 40% of the salary.
The solution is undoubtedly difficult, but it may be necessary. the loan request will more easily have a positive outcome if the subject has set aside a good severance indemnity, which will in fact be taken to guarantee the return on the loan. This solution allows to obtain up to a maximum of 90,000 USD returnable in 10 years.
If you are considering loan solutions of this type, remember to pay special attention also to insurance, sometimes optional, other mandatory. Although it represents a cost, in fact, it allows you to be protected if serious unforeseen circumstances (accident, loss through no fault or unwanted job, death) make it impossible to return to the loan: in these cases, in fact, the insurance company will proceed directly to payment. It is therefore a very important clause, necessary to protect one’s own serenity and that of loved ones in the event of unforeseen painful incidents