Loans to Retirees: Offers and Advantageous Rates
Due to the economic crisis and the collapse of permanent contracts, credit institutions have made sure to protect themselves by providing their loans to pensioners. Let’s see together how a pensioner can apply for a loan.
Which pensioner can apply for the loan?
It is immediately clear that not all pensioners can apply for a pension, in fact they must meet some essential requirements that we see together: being Italian, a pensioner who is a maximum of 88 years old; some institutes raise the age up to 90 years, having served in a public administration body. For example, schools, ministries, government offices or having served in a private company but being registered with a social security institution affiliated with the bank, or the financial institution that will have to grant the loan.
To obtain a loan, moreover, you must have a pension between: retirement pension, old-age pension, survivor’s pension. These are the pensions that are required for a loan to be accessed. All the others will not be covered.
What is the assignment of the fifth?
Surely, one of the most exploited and used methods of repayment by pensioners to obtain a loan is the transfer of the fifth. From the name you can guess that you are going to deduct a fifth from your pension. All social security pensioners can use it. In fact, it will be the same institution to deduct a fifth from the pension and send it to the credit institution that provided the loan. Very useful as it is one of the safest ways to apply for a loan.
How to request the assignment of the fifth
First of all, you must go to an social security office, there you will go to an interview with the employee who, through a calculation of what you take out of the pension after tax, can draw up a maximum transferability of the pension. A document will be issued and, with that document, you will have to go directly to the chosen credit institution. The assignment of the fifth is in great demand among pensioners since it protects the latter as much as possible.
Loans to pensioners: What will social security do?
Once it has been ascertained that the pensioner can safely request a pension, the social security will have to perform some operations:
-Check whether the lender, chosen by the pensioner, meets the requirements for doing this. Not all institutions are affiliated.
-It will check that rates remain below anti-usury standards. Then he will check that you do not pay interest rates on a regular and fair basis.
-That the required installment remains below or equal to the fifth of your pension. There are many institutions that play and leverage precisely on this situation.
-That all expenses relating to the loan itself are indicated in the contract in which the sum and amount of money requested is stipulated.
Retired Personal Loans: What Documents Do You Need?
We state that it can vary from bank to bank, the documents that are generally required are: tax code, identity card, the last two payslips of the pension, OBIS and the 730 model.
How is the bank protected? We will certainly ask ourselves what the bank derives from these contracts, in addition to the interests themselves. In short, is it really worth it? The answer is yes”. For a simple reason. Among the expenses that the pensioner will have to bear to repay the loan is one, which will be noted in the contract, and that which is defined as the insurance of pre-eminence. It is used to insure the bank, or the lending institution, so that if the pensioner requesting the loan dies, he will undertake to pay the remaining amount to the institution itself.
Loans to retirees: where to find the right institution?
Since the social security has launched this new method of lending, it has released a list of all the institutions and banks with which it has agreements, so that it can also obtain subsidized loans.
One of the biggest steps forward that Italy has made in recent times concerns the ability to apply for loans also from pensioners. Given the numerous scams that the latter are victims of, the social security immediately tried to follow them and protect them to the maximum. So unless you move on your own, the loan to the retiree through social security is absolutely safe and guaranteed.
Loans to pensioners with the assignment of the fifth
What are the age limits? Loans for pensioners are loans designed for everyone who receives a pension.
In most cases, they are loans that ensure more advantageous conditions than loans for employees, thanks to special agreements entered into by some banks with social security institutions.
Most loan applications submitted by pensioners concern sums necessary to deal with sudden or unexpected events, or more simply to satisfy the purchase of a good or service.
The types of loans for pensioners
Among the most common types of loan to pensioners we find the transfer of the fifth of the pension, a form of loan through which the installment of the loan is directly deducted from the beneficiary’s pension slip. The installment amount cannot exceed 20% of the monthly income after tax.
Compared to loans for employees, the conditions required by banks to grant loans to pensioners on assignment of the fifth are less flexible and depend above all on the age of the applicant, which if very advanced can constitute a greater risk of falling into insolvency.
Age limits can vary from one institution to another: there are credit institutions that set 75 years as the maximum limit, while others go up to over 80 years. In any case, for retired workers there are other possibilities of obtaining particularly convenient loans on assignment of the fifth, first of all the social security loans for pensioners.