What are employee loans?
The Loan is intended for employees with permanent employment contracts and for pensioners. The employee loans product offers more guarantees to the institution that finances the Loan, as it allows to use simpler, less thorough evaluation criteria.
Example: normally in the case of a request for a Personal Loan to those who work in a private company for a short period of time indefinitely, 2-3 months, the answer is negative and it is requested to wait until one year of service, while with the Cession of the fifth in this case it is possible to proceed. In the case of a fixed-term employee, it is only possible to proceed after the transformation of the permanent contract already with the first paycheck. The reality is that the Loans are valued at 360 degrees and before giving the approval the Banks / financial Institutes do a thousand checks. It has gone from an exaggeration, all to everyone, to another for which they no longer finance anyone.
Loans to employees, who can ask?
This type of Loan is available to all those who are in the category of permanent employeesand pensioners. In fact, for the financing you need the pay slip or the pension, without or with a fixed-term contract it is not possible to proceed.
The Assignment of the Fifth for both Employees and Pensioners is useful because it is safe and guaranteed by the TFR or the Pension and also because we enter into the economic evaluation of the applicant’s indebtedness, which was decided by the Bank in Italy.
Furthermore, only for Employees it is possible to proceed with a second Assignment of the Fifth (Delegation) for a further 20% and therefore a total payroll deduction of 40%. This second withholding, Delegation, is optional, it is up to the Employer to grant the authorization, unlike the Assignment of the Fifth which is required by Law 180/50 and therefore mandatory.
Duration loans to employees
The duration of loans to employees ranges from a minimum of 12 months to 120 months, a maximum of 10 years. This allows extending the duration of having installments to be repaid lower and therefore better able to be met by the Applicant.
Guarantees of loans to employees
This type of Loan is guaranteed by the TFR (Employee Severance Indemnity) accrued and maturing and by the insurance for the health case and for job loss.
Unlike the traditional loan which requires the Applicant to request the intervention of a Guarantor or Guarantor for a loan, in the case of loans to employees there is no such need. No parents’ signature and therefore no mortgages.
Loans to employees: since the Loan is guaranteed by accrued and accruing severance pay and by insurance, both for health and job loss, there are no risks for the financial company.