Assignment of the fifth: loans for bad payers
Even bad payers, that is customers who have not been able to pay one or more installments of the loan on time, can access credit. Loans for bad payers can be disbursed through the assignment of a fifth of the salary or pension.
Bad payers: who they are
The banks are making loans for bad payers with difficulty. In fact, thanks to the Central Credit Register, a system managed by the Best bank, the financial institution can check the customer’s status, thus assessing his credit history.
The name is kept on the ” bad payers lists ” for a period of time that varies, depending on the seriousness of the default, from 12 to 36 months. In this specific period, access to credit can be difficult: the bad payer is associated with a high risk of insolvency, therefore banks and financial companies tend to reject any requests for financing.
However, even bad payers can get financing thanks to the assignment of a fifth of their salary or pension.
The assignment of the fifth: a simple loan solution for bad payers
The assignment of the fifth is a type of non-finalized personal loan that allows the applicant to obtain up to 60 thousand USD at a fixed rate, even if he has been reported as a bad payer. To access this loan you need:
- be a permanent employee employed;
- a pensioner;
- a worker with a fixed-term contract, provided that the debt is extinguished within the deadline of the employment contract itself.
In the presence of these indispensable requisites, the loan is granted with relative ease, since the repayment installment is withheld directly from the salary or pension.
The amount of the installment cannot exceed one fifth of the salary, therefore the sum loaned will be proportional to the income of the applicant. The employer has no say in the loan. He will be contacted by the bank because the loan can only be disbursed upon confirmation of the contract by him.
What are the guarantees for the financial company?
In order to grant loans for bad payers (but in reality for all the other types of customers), when they request a loan with assignment of the fifth, it is necessary to take out a compulsory insurance policy. This protects the bank in the event of exceptional events such as death or job loss.
In the event that the applicant is an employee of a private company, the insurance company, which bears the final risk of the operation, may request the presence of a series of objective requirements in terms of corporate form, such as:
- minimum number of employees (tending to exceed 15);
- share capital above a predetermined level.
In the assignment of the fifth, a further form of guarantee for the bank is represented by the severance indemnity accumulated during the working life of the financed subject. The greater the length of work, the higher the TFR and the greater the guarantee for the bank.