Personal loans with disability pension
The assignment of the fifth is the form of loan to which all pensioners have easy access. However, many still have doubts about the functioning of the loans on the assignment of the fifth, especially as regards the assignment of the fifth of the invalidity pension.
Before we review the conditions applied to loans on the assignment of the fifth of the disability pension, let’s take a general overview of what the assignment of the fifth is and how it works.
Initially introduced to facilitate access to credit for employees, the transfer of the fifth was also extended to retirees at a later date. It is a form of access to credit that allows you to obtain money by repaying the loan with periodic deductions from the paycheck or pension.
In this way the beneficiary does not have to worry about the amortization installments, since they will be directly deducted from his presidential check. The deduction occurs every month. The loans on the sale of the fifth provide for an amortization plan with monthly installments of a constant amount.
As can be seen from the name, loans on assignment of the fifth can have a monthly installment equal to a maximum of the fifth part of the net salary or pension. The interest rate remains constant throughout the repayment plan, which can extend up to 10 years.
The amount that can be financed depends on the applicant’s repayment capacity, that is, on the amount of the monthly installment that he can repay.
As already mentioned, all holders of social security treatments have access to loans on assignment of one fifth of the pension. However, it is necessary to remember that there are some special exceptions. There are in fact some types of pension or treatment to support income that cannot be subject to assignment of the fifth.
The holders of:
- social pensions;
- social allowances;
- allowances for disability pensioners;
- civil disabilities;
- income support allowances;
- Exodus benefits pursuant to art. 4 of Law no. 92/2012.
For holders of joint pensions, the transfer of the fifth can be requested only for the share pertaining to the applicant. It is therefore not possible to attack the pension share of the competences of the other holder of the pension.
Transfer of the fifth rate for pensioners with disabilities
Now that we have seen what loans on a fifth of the pension are and how they work, let’s talk in detail about the possibility of obtaining loans for those who receive a disability pension.
In principle we can say that credit institutions do not consider that the condition of invalidity is a discriminating factor for access to credit. However, there are particular situations in which banks and financial institutions can reject a loan application from a disability pensioner. However, this depends on the disease affecting the applicant.
But what are the requirements to be met? As in most cases, personal loans granted to holders of a disability pension require compliance with certain requirements. First of all, the applicant must not exceed the age limit set by the bank.
Although this is not a fundamental requirement, banks and financial institutions are often more likely to accept requests for loans on assignment of one-fifth of the disability pension presented by those with a good credit profile. What does it mean?
Having a good credit profile means that you have had no problems in repaying an old loan or mortgage. Otherwise the user will be reported as a bad payer in the SIC (Credit Information Systems) databases. The same applies to anyone who has suffered a protest or a foreclosure.
Obviously, regardless of the credit history and age of the applicant, the loan is granted only on condition that the applicant has adequate income. The monthly income of the person submitting the application must in fact be sufficient to guarantee the regular repayment of the installments.
In the absence of these conditions, it will always be impossible to obtain a loan on the sale of one fifth of the disability pension. This is because, as already mentioned, the transfer of the fifth is entirely based on the fixed income of the beneficiary. It is therefore not possible to associate the transfer of the fifth accessory guarantees such as the signature of the guarantor or the mortgage on the house.
This does not mean, however, that the assignment of the fifth is an unsecured form of loan. First of all, the risk of insolvency is eliminated, given that the installments are paid by the social security institution. The bank that grants the loan is also protected even if the beneficiary dies before the debt is extinguished.
In this case, in fact, the bank is compensated by using the pension still due to the borrower. And in the event that the amount due exceeds the amount of this pension, the insurance policy provided will intervene. In fact, by law the loans on the sale of the fifth provide for the signing of a mandatory life risk policy.
The documents to be presented
Let’s move on to the question of the documents to be submitted when applying. Like all personal loans, to obtain financing on the sale of the fifth of the disability pension, it is necessary to present the income document.
Since these are products dedicated to those with disabilities, the applicant’s state of health can be a determining factor in the granting of the loan. Consequently, during the application it will be necessary to also present the documentation concerning the pathology of the applicant. Documents that are necessary to evaluate the gravity of the same.
Indeed, it is unlikely that a bank or financial company will be willing to grant a loan on the sale of one fifth of the invalidity pension to a very serious person. If the risk of death is very high, it will be almost impossible to obtain financing.