Assignment of the fifth: how it works and why choose it
The loan on the sale of the fifth of the salary is one of the most used forms of financing in our country. It is in fact a product that allows access to credit by presenting the salary received by the applicant as the only guarantee. when we talk about double assignment of the fifth, we refer to the payment delegation.
The delegation of payment is a form of loan that follows the same general conditions as the assignment of the fifth and is supported by it. Those who request a transfer of the fifth, or already have one in progress, can therefore use the loan with delegated payment to obtain greater liquidity.
But how does the assignment of the fifth work? The characteristic that distinguishes the transfer of the fifth from the traditional personal loans is the reduction of the installment at the source. The amortization installments are in fact deducted directly from the applicant’s paycheck. Deduction made by the employer, who undertakes to pay the bank the sum due for the payment of the installment.
Refund and insurance
As the name suggests, the transfer of the fifth provides for a maximum monthly installment equal to 20% of the net paycheck. In this regard, it is necessary to specify that the same limit applies to the delegation loan. By resorting to the double assignment of the fifth, it will therefore be possible to assign up to 40% of the monthly salary for the repayment of the debt.
As for the refund conditions. Loans on assignment of the fifth can last from 24 to 120 months. The rate is fixed and the sum that can be financed is defined in the application, based on the applicant’s income.
The current legislation then provides for the underwriting of an insurance policy to guarantee the loan upon assignment of the fifth. Coverage that must intervene both against life and employment risks.