The transfer of a fifth of the pension is the typical pensioner loan, usually INPS, granted by financial companies on more advantageous terms than other personal loan solutions.
Loans for pensioners are loans designed and granted specifically to those who enjoy a retirement pension (read pensions excluded from the assignment of a fifth).
These are types of loans that can be easily granted to both private and public pensioners, with great advantages and decidedly affordable interest rates.
Loans to pensioners through the assignment of the fifth: characteristics
- It is a loan that is granted to those who have a retirement pension granted by INPS;
- To be able to request it, you must usually be up to 75 years old (but there are exceptions, we talk more about it below);
- It’s a non-finalized loan, so you don’t have to say why you need the loan;
- You can use the money both for yourself and help a son or grandson;
- It can also be requested if there are other loans already in progress;
- Bad payers and protests can also request it.
Loans to retirees, how it works
- the applicant applies for funding to one of the best financial agencies or banks;
- from the moment the application is accepted, you will receive the money in your bank or postal account;
- the reimbursement of the sum takes place by withholding the installment from the net pension
When it comes to the transfer of a fifth of the pension, one of the major limits that could be encountered is that of the age of the pensioner.
Usually, the maximum limit is 75 years not completed at the time of the payment of the last installment, but since the law does not provide for anything on the matter, the financial companies can safely grant loans even to older people. In this case, we speak of loans for pensioners up to 80 years or up to 90 years.
Loans to pensioners over 80 years
For those with up to 80 or more, there are still possibilities of requesting funding.
The 80 years must not be completed on the day of payment of the last installment of the loan. Since the risks to the financial sector may be higher, higher interest usually applies.
These loans to pensioners over eighty are also covered (which, however, happens with all financing solutions, by an insurance that has the purpose both to protect the financial granting the loan, and to give protection to the debtor’s family in the unfortunate event that he fails and the loan has not yet been repaid 100%.
Loans to pensioners up to 90 years
In this case, the maximum age of the applicant can be 90 years at the time of payment of the last installment of the loan. Due to the high degree of risk, not many financial companies grant this loan.
Let’s say there is no maximum amount that I can apply for as senior citizens loans.
Much depends on the monthly payment that you can afford to pay. The calculation of the same is very simple and fast and must be done considering the minimum pension, which at the time of writing is $ 501.98 per month for 2019).
- Gross monthly pension: $ 502.98
- Withholding tax: 0 $
- Net pension: $ 502.98
- Minimum statutory pension: $ 501.98
- Transferable share: $ 1 (given by the difference between the net pension and the minimum pension)
Here is also another example of calculating the installment:
- Gross monthly pension: $ 1,500.00
- Withholding tax: $ 375
- Net pension: $ 1,150.00
- Minimum statutory pension: $ 501.98
- Transferable share: $ 648.02 (given by the difference between the net pension and the minimum pension)
As can be seen, the minimum pension is always safeguarded and cannot be affected in any way.
Read also our specific text on how to calculate the transferable share for the transfer of a fifth of the pension.
Also keep in mind that the installment includes all ancillary costs, life, and employment risk insurance costs, as well as the principal and interest portions.
Guarantees and necessary documents
Usually, there is no need to provide any additional guarantee in order to have access to this type of financing, given that the pension slip and the transferability notice are sufficient, or a document issued by the local office of your INPS in which the maximum amount can pay as a monthly installment.
Who can apply for loans for retirees?
Here is one of the most interesting questions that retirees usually ask and ask themselves. Let’s say that, in general, all INPS and ex-INPDAP pensioners can apply for loans for pensioners with the assignment of the fifth, whether they are ex-employees, private, public or ministerial.
Instead, the following forms of pension or checks are excluded:
- civil disability pensions
- pensions for banking staff
- pensions and social allowances
- income support allowances
- monthly allowances to assist retirees due to incapacity
- family allowances
Loans to civilian disabled pensioners
When we talk about disabled pensioners we say that, usually, the condition of invalidity in itself does not allow access to the loan for “classic” pensioners.
This does not mean that disabled civilian pensioners cannot access a loan as long as the pension allows repaying the installments. In this case, the disability pension must be considered as any other income.
Suppose a person has a civil disabled pension of 1,000? per month, can the monthly payment even go up to 300? – 400?, Depending on the other expenses you have around.
In this case, the maximum installment that can be paid depends on the bank and bank and is not subject to any statutory taxation (as is the case for the transfer of a fifth of the pension ).
For more information, read our article on subsidized loans for disabled civilians.
Reimbursement of the assignment of the fifth
Usually, these loans are granted according to the method of transferring one-fifth of the pension. In practice, the monthly installment that is paid has a maximum amount equal to 1/5 of your net pension.
This installment is paid by your pension institution directly to the finance company so that you don’t need to remember anything.
With regard to the transfer of the pension, there is a limit imposed by Italian law on the minimum pension. Let’s see everything with an example, in order to clarify better.
The minimum pension that a pensioner must have every month is 501.98 dollars. Therefore, the amount of your net pension, less that of the installment of the assignment, cannot be less than this minimum amount.