How to have a loan with reversibility pensionMarch 15, 2020
How to obtain loans with reversibility pension
Is it possible to obtain Government Agency loans with a survivor’s pension ? A question that many people ask but few have clear ideas. The first thing to clarify when it comes to loans with a survivor’s pension is that this represents a fixed and continuous income.
Income which can therefore be used as a guarantee for the granting of a loan. Those who have a survivor’s pension can therefore apply for a personal loan by presenting this income as collateral.
This also applies to loans on assignment of the fifth. A particular type of loan that banks and financial institutions are usually more likely to grant. Accessible only to pensioners and employees, the transfer of the fifth provides for the repayment of the loan by reducing the installment from the paycheck or pension.
In this regard, it is necessary to specify that it is not always possible to obtain Government Agency loans with a survivor’s pension. In fact, it is not possible to use the survivor’s pension as collateral for a loan on assignment of the fifth if this is equal to the minimum pension.
In fact, the minimum pension treatment cannot be subject to the transfer of the fifth. This is because the minimum pension is the income set by the Italian state as the minimum income necessary for the survival of the individual.
Sale of the fifth Social Institute with reversibility pension
When we talk about Government Agency loans with reversibility pension, we refer to the loans on assignment of the fifth granted by banks and financial institutions in agreement with the social security institution (now merged into Social Institute).
But how does the transfer of the fifth of the pension work? As already mentioned, this is a form of loan which provides for the reduction of the installment at source. As the name suggests, the assignment of the fifth provides for a monthly installment not exceeding one fifth of the monthly pension. The maximum expected installment is therefore 20% of the monthly income.
The interest rate is fixed and the maximum amount that can be financed is defined on the basis of the applicant’s income. As regards the duration of the amortization plan, it ranges from a minimum of 12 to a maximum of 120 months.
In this regard, it is also necessary to consider the age of the applicant. In fact, banks and financial companies are usually willing to grant loans to subjects with a maximum age of 85 years. Age that is considered in reference to the date scheduled for the conclusion of the repayment plan.
Unlike most loans therefore it is possible to apply for loans on assignment of the fifth even in old age. Among the advantages of loans on assignment of the fifth of the pension we also remember the possibility of accessing credit for those who are reported as bad payers in the Crif lists.