Features and Requirements. Expenses in sight and little liquidity? If you are a permanent employee or a pensioner, you can easily obtain financing through the so-called assignment of the fifth. It is a form of personal loan which can only be accessed by public and private employees, and, in fact, by pensioners.
Loan application process
In particular, in order for a loan application to be accepted, it will be necessary to:
- Do not exceed a certain age limit if you are retired
- Prove that you have a permanent contract for at least 2 years if you are a private employee. In this case, some lenders also require that the employer company meet some requirements regarding the size and number of employees.
- Have a permanent employment contract with at least 4 years of seniority for workers employed in public and state administrations.
As can be deduced from the name, loans with assignment of the fifth are repaid in installments of an amount corresponding to the fifth part of the net paycheck received monthly.
Loans with assignment of the fifth
They are normally provided by banks through agents in financial activity.
If the above conditions are met, banks and finance companies tend to make these loans rather easily, as their level of risk is very low. The repayment installments are in fact withheld from the monthly income of the financed person and paid directly by the employer or by the social security or other social security institution if you are retired.
For the same reason, this type of financing also has many advantages for consumers. For example, the provision of particular guarantees is not required, apart from the obligatory stipulation of an insurance on life and employment risks, aimed at protecting the lender from the risk of premature death or loss of work of the financed subject.
Can also be obtained from protestors and bad payers, and can be combined with other loans or mortgages.
To obtain a loan with a loan of the fifth, it is sufficient to present the paycheck and the CUD model, together with an identification document and the tax code or health card. You do not have to specify the purpose for which you intend to allocate the sum requested on loan, unlike what happens with mortgages, for example.
The expert agents of the Reliance Group will be able to answer all your questions on this type of loan and will help you find your way in the credit products market.