In this article we want to talk about payday loans for Pensioners, that is to say all those services dedicated to the older age group of the population: an increasing number of over 65, in fact, make use of bank loans to cover unexpected expenses of various kinds, such as those concerning medical care, the purchase of goods (buildings, appliances etc.) or the subsidization of projects for children or grandchildren.
Retirees are a category usually favored by banks, due to the stability of income, as they cannot meet demotion or dismissal, but nevertheless encounter many difficulties due to old age: most services, in fact, are addressed to citizens who have not passed the sixty-fifth or seventieth year of age.
However, it should be remembered that pensioners can take advantage of a particular category of funding: those with a salary assignment, for which there is no need to present specific guarantees, nor specify how the requested sum will be used, thus leaving ample room for personal maneuvering to carry out their projects in full serenity and autonomy, without involving other people in the negotiation.
The sale of the fifth for pensioners
As we were saying, the vast majority of services dedicated to pensioners are defined as salary-backed loans: this means that, when the customer turns to the Bank, Social Institute takes on the task of repaying the sum obtained, directly withholding the amount of monthly installments from the pension and paying it to the Institute in question, for a period that cannot exceed, by law, ten years.
However, not all pensions can be used for the sale of the fifth, but the following categories are excluded:
- pensions and social allowances;
- civil disability;
- allowance for assistance to pensioners with physical or mental disabilities;
- income or family support payments;
- bank staff pensions.
What is the fifth assignment?
Let’s take a small step back and illustrate the characteristics of the sale of the fifth, a method that allows various categories of customers, often excluded from ordinary banking services, to access loans with less unfavorable conditions: in fact, it is aimed primarily at all those that, in the past, have been classified as bad payers and included in the Central Risks.
Through the assignment of the fifth, the customer delegates to his employer (or to the institution that pays the pension, in this case the Social Institute) the task of paying the monthly installments, retaining them directly from the salary: the sum withheld, however, it cannot exceed one fifth of the total income, in order not to burden the family or personal budget excessively.
For pensioners, the operation is almost identical, although some security measures are envisaged:
- the monthly payment cannot exceed 1/5 of the net pension;
- the total reimbursement must take place within the eighty-fifth birthday;
- the total figure must be equal to or less than 75,000 euros;
- the rate and the interest rate remain constant for the entire duration of the loan.
This means that the maximum sum that the customer can obtain is proportional to the amount received monthly: if with a net pension of 1,600 euros, for example, the installment can go up to 430 euros, while with one that amounts to 800 euros, this cannot exceed 160 euros, and the total, consequently, will be much lower.
Requirements for payday loans for Retired Persons
We now see the requirements necessary to access the fifth assignment, which all pensioners must exhibit at the selected Credit Institution: first of all, they must go to an Social Institute office to calculate the maximum amount deductible from the pension and then draw up the Transferability Notice, an indispensable form to start the estimate and the negotiation.
Once the characteristics of the loan have been established (amount, duration, monthly installment), the client must present the following documents:
- valid identity card and health card;
- cud or pension slip;
- valid residence permit for customers of foreign origin.
Once the file has started, in the event of a positive outcome, the sum will be paid directly to the applicant’s current account, in a fairly short time; to speed up the request phase, it is possible to use the online procedure, through the form made available on the website of numerous Credit Institutions: in this way, the amount will be available within one or two days.
Security measures for pensioners
Once the negotiations have been completed and the budget drawn up, it will be the Social Institute’s responsibility to verify that the financing falls within the current legislation, aimed at defending the interests of pensioners and guaranteeing their non-exorbitant conditions: the overall rate, in fact, must be equal or lower to the maximum allowed by the anti-usury law, the monthly amount must not exceed 1/5 of the net pension and the contract must clearly indicate all the accessory expenses.
Furthermore, Social Institute has established an agreement with most banks and credit institutions, in order to keep interest rates lower:
- for loans of less than 5,000 euros, the interest rate cannot exceed 8.45%;
- for loans exceeding 5,000 euros, it cannot exceed 7.55%.
The advantages of the sale of the fifth
At this point, therefore, it is clear that the fifth assignment is a valid opportunity for pensioners who need a loan, and who do not have special guarantees. This mode, in fact, allows them to access even quite substantial sums, equal to 75,000 euros, in short times all together, without involving a third person in the contract, and diluting the payment of the installments in a period of the duration of ten years.
Furthermore, for pensioners it is compulsory to take out insurance coverage, useful for guaranteeing a safety margin both to the Bank, to the family and to the client, in the event of accident or death: the cost of the insurance is entered among the costs of the loan, which can be calculated at the estimate stage.
In conclusion, the fifth assignment is the most common method for all pensioners who wish to obtain a loan, as it allows over 70s to access banking services without presenting any particular guarantees. Moreover, thanks to the agreements stipulated between Social Institute and Credit Institutions, these packages often have much more favorable conditions, in addition to the possibility of knowing in advance the amount of the installments and the total cost.
We also suggest that you periodically check the offers on the websites of the Banks and, in case of urgency, to use the online procedure, which allows you to significantly reduce the time and bureaucratic commitments, and to obtain the desired amount in a short time..