The pensioner’s loan: all the information on how to access and the complete guide to the assignment of the fifth.
The retired loan is a loan capable of ensuring the liquidity necessary for ambitious projects such as the renovation of a house. The project of a renovated house, brought into law that, for too long, has been postponed can become a reality with the sun coast pensioner’s loan.
It can materialize either with a personal loan or with the assignment of a fifth of the pension.
Until 2005, the assignment of the fifth was intended exclusively only for public employees. Today not only does the possibility of assigning the fifth for private employees exist, but retirees can also request it.
The INPS takes care of the protection and conditions that the pensioner subscribes for this loan, which, over the years, has also defined the methods by which the assignment of the fifth is paid.
However, the retired loan is not just a fifth assignment, it is also a personal loan that can be disbursed based on certain variants.
But how to orient yourself in the sea of financial services dedicated to pensioners and the loans provided by banks and various credit institutions?
Using systems such as salary-backed loans and personal loans, retirees can obtain useful sums of money, for example, for the renovation of the house but it is essential to collect more information because the proposals, even online, are very different from each other.
Assignment of a fifth of the pension
The assignment of the fifth is one of the most important types of loans. A convenient and quick tool for obtaining a loan: it does not require a reason and the installment, as the name suggests, does not exceed one-fifth of the pension.
The assignment of a fifth of the pension can be requested at a bank or a credit institution. The INPS pays the pension from which a fifth due to the institution providing the loan will be withheld.
The conditions and advantages of the assignment of a fifth of the pension are different:
- rates agreed with INPS;
- customized amounts;
- fixed installments;
- repayments up to 10 years;
- the possibility also for the over seventy-year-olds.
The assignment of the fifth provides for the signing of a contract and duration that cannot exceed 10 years and insurance coverage is mandatory to honor the entire loan.
Who can obtain the assignment of a fifth of the pension
The assignment of a fifth of the pension can be requested by all pensioners as long as at the end of the loan we have not exceeded the maximum age.
When you inquire about the loan for pensioners up to 80, 85, and 90 years, you must remember that there is a maximum ceiling ( 85 years of age in fact) within which the end date of the loan can be established and not it’s beginning. !
Therefore, for the request for the assignment of a fifth of the pension, you must be a maximum of 85 years old when you finish repaying the sum due.
But are there other impediments? Who are the pensioners who cannot request the assignment of the fifth?
- pensioners with a pension equal to or less than 500 euros
- those with disability pensions
- who receives assistance allowances for disabled pensioners
- those who receive income or family support allowances
- Holders of pensions with joint ownership, the loan will concern the part of the person holding the contract.
As we can see, these are limitations that essentially concern those who have financial aid from INPS.
How to obtain the assignment of a fifth of the pension
The starting point from which to start to obtain the assignment of a fifth of the pension is the pension itself. On the amount, a calculation must be made on the tax deductions to then move on to the formulation of what can be granted.
The assignment of the fifth is a type of loan, which is always based on the signing of a contract for which the pensioner undertakes to repay the loan by paying monthly installments whose amount never exceeds one-fifth of the pension received.
It is a type of loan that the retiree signs with a bank or credit institution even if it is the INPS that pays the sum and whoever has obtained the loan sees what is owed to the lender withheld.
Consequently, after having established the amount of the loan and the installment, the repayment terms must be set, bearing in mind that it must be extinguished by the age of 85.
To obtain the assignment of the fifth, you can contact the bank or a credit institution even online! For the request, it is important to certify the amount of the pension and then certify the amount you want to request and the duration of the loan.
Who protects the pensioner?
The I NPS protects the retiree: the bank or credit institution, to which it is addressed, must meet very specific requirements. A shortlist:
- they must, first of all, have an agreement with INPS
- the installment established by the contract must not exceed one-fifth of the pension
- the loan rate must be lower than the anti-usury rate established by law
The list of banks and affiliated institutions is available on the INPS website.
Retired Personal Loan
The pensioners of the public sector and private needing funding can also access the personal loan.
The personal loan is not aimed at the purchase of a specific asset but responds to the need for liquidity. The request can be made to a bank or a credit institution that, having approved the application, proceeds to draft a contract in which the amount of the installments and the interest rate will be specified.
The retiree applying for a personal loan is also required to take out a life insurance policy. A deed is due to the lender who needs to ensure full repayment of the loan even in the event of death.
The retired personal loan has times and methods very similar to all other types of financing but has specifics regarding those of the private sector.
The banks and lenders may grant the personal loan only to persons under the age of 75 years and the restitution of the amount due shall not exceed the 80th year of age.
And for the over 80s? Both banks and credit institutions have solutions and packages available to satisfy even the demands of overs.
And the pensioners of the public sector? It is the same INPDAP has a fund destined for its retirees both for small amounts and the more substantial ones for which multi-year installments are needed.
The loan is disbursed by INPDAP or by an affiliated credit institution.