Transfer of the fifth and personal loan are two forms of financing dedicated to individuals but with substantial differences. Which is the most convenient of the two? It depends. Precisely because of their differences, they are intended for different categories and different types of refund methods.
Let’s see together what are the differences between assignment of the fifth and personal loan.
Definition of assignment of the fifth and personal loan
The assignment of the fifth is a non-finalized loan with constant repayment of the installments and dedicated exclusively to workers and pensioners. The monthly installment can never exceed one fifth of the salary or pension, ie 20%, and is withheld directly from the paycheck or pension. There are two types of assignment: the assignment of the fifth of the salary and the assignment of the fifth of the pension , the first dedicated to workers and the second to pensioners.
Personal loans are also non-finalized loans dedicated to individuals. The repayment takes place according to a pre-established amortization schedule, the amounts that can be requested vary and in order to obtain it, it is sometimes necessary to present guarantees.
The assignment of the fifth is intended for workers and pensioners from the public, state and private sectors. It can also be requested by protesters and bad payers . The minimum age to apply for it is 18 years.
All those who are at least 18 years of age can apply for personal loans , including the unemployed but not the protested. Bad payers, on the other hand, have very difficult access to a personal loan. To know all the details read our article Who can apply for a personal loan?
The differences between assignment of the fifth and personal loan include guarantees. To request the assignment of the fifth, it is not necessary to present guarantees because both the salary and the pension and the insurance policy guarantee the repayment of the loan to the credit institution.
To apply for a personal loan it is necessary to present income and good creditworthiness. In addition to work income or retirement, lenders can therefore request additional guarantees such as a guarantor , a joint account holder or the registration of a mortgage on a property.
Loan repayment method
The differences between assignment of the fifth and personal loan are also substantial in the repayment of the requested amount. In the assignment of the fifth, the installment is withheld monthly directly from the paycheck or pension.
With the personal loan you have to pay the installment punctually every month. It is advisable to avoid delaying the payment of the installments because, otherwise, there is a risk of reporting in credit information systems such as Crif . The reports risk precluding the possibility of requesting further loans in the future.
In addition to the repayment methods, also as regards interest rates, the difference between the transfer of the fifth and the personal loan is substantial. The transfer of the fifth of the pension has particularly subsidized rates for pensioners , but the fifth of the salary also has subsidized rates for the workers.
The rates of personal loans are usually higher than those of the assignment of the fifth. In addition, you must be careful and check that the rates are not so high as to be considered usurious.
Loan with usurious rates, here’s what to do
To avoid nasty surprises, it is always good to read the Secci form , which contains all the pre-contractual information regarding the loan, including rates, expenses, repayment methods, consumer rights and contract duration.
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