Assignment of the fifth: what it is and what are the advantages
Do you need cash in a short time or do you want to take a whim by buying the car of your dreams? Or, do you want to improve your work skills and need help enrolling in a training course? If you are an employee (public or private) or a pensioner, as an alternative to a personal loan, the salary-backed loan is becoming increasingly popular in our country.
This type of loan, according to the latest data from the PrestitiOnline.it Observatory , now has more advantageous interest rates than classic personal loans . The best salary-backed loan solution has Taeg 4.32% for private employees, 3.05% for public employees and 3.63% for retirees, while the best rate for a liquidity loan stands at 5.70%.
The assignment of the fifth of the salary allows you to return the amount obtained by transferring a part (a fifth, in fact) of the salary or pension to the lender. Among the advantages of this type of loan is the fact that it is a non-finalized credit , and that is, those who request it are not required to specify how they will spend the money .
Another advantage is linked to the fact that even those who have been reported to the Central Credit Register in the past will be able to apply for this loan and obtain it more easily, given that the employer represents a guarantee on the repayment of the debt in the eyes of the financial institution.
This type of financing can be requested by employees who have a permanent contract (both in the public and private sectors), resident in Italy, aged between 18 and 63, or by retirees of age not over 90 years, with a pension of a minimum amount greater than the transferable amount.
The repayment duration , once the loan has been obtained, ranges from a minimum of 2 years to a maximum of 10 years . It is mandatory to take out insurance in order to guarantee the repayment of the residual debt in the event of loss of work or death: this aspect also makes the assignment of the fifth a safe product that pushes financial institutions to grant it at lower rates.
So let's summarize the advantages of the assignment of the fifth compared to the traditional loan. First of all, the calculation of the installment, which in the case of the transfer cannot exceed one fifth of the salary or pension. Then there is the guarantee of reimbursement provided by the employer or the pension institution, which also allows those who have been protesting or had solvency problems, to have access to this type of credit. The amount of the loan must then be considered, which can also reach very high amounts being calibrated on the amount of the salary or pension.
In conclusion, the time to start the salary-backed loan is now, at a time when this tool is more convenient than personal loans.
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The article Cession of the fifth: what it is and what are the advantages comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/cessione-del-quinto-cose-e-quali-sono-i-vantaggi/ on Tue, 28 Jun 2022 13:25:54 +0000.