The salary loan is one of the most requested forms of financing. Find out with our guide what it is and what the procedure for obtaining the loan with the salary loan.
In the following guide we will illustrate what the salary loan is, who can request it and what the procedure for obtaining it.
What is the salary loan?
The salary loan is a type of financing that is aimed at those who have a salary or pension. Who provides this service is usually a bank or a financial intermediary directly or through its agents regularly registered in a special register kept by the OAM (Mediator Agents Body).
A civil servant, a private employee or a pensioner can request it: if the loan is granted, it will be repaid in monthly installments that have an amount less than or equal to one fifth of his salary or pension.
The installments are withheld directly from the salary or pension of the person who entered into the loan agreement and pay them to the bank or financial institution; By the employer if the applicant is an employee, by the INPS or other pension institution if he is instead a pensioner.
The installments are automatically debited from the bank account of the person who entered into the loan agreement (having a postal or bank account is mandatory if you want to access the loan).
How the salary loan works
A salary loan is a financial transaction which involves the conclusion of a contract between the applicant and the banking or financial institution chosen by the applicant.
The loan agreement is binding for those who obtain the loan since it undertakes to repay the amount of money expected in a period of time that varies from a minimum of 24 months up to a maximum of 120 months.
The contracts entered into are in any case protective for both parties since insurance coverage is provided in case of loss of job or premature death of the applicant for the extinction of the loan (thus the heirs are also protected).
How to renew the salary loan
Once all the installments provided for in your plan have been paid, the loan agreement is to be considered concluded and the loan extinguished.
Once the loan has been paid off, it is possible to request a new salary loan to the same entity or to search for a new one. Furthermore, it is possible to request the renewal of the salary loan of the salary or pension even before the amortization plan has ended, provided that at least 40% of the installments initially envisaged have been paid.
The new contract for the loan, in some cases, allows the applicant to obtain concessions, such as, for example, a lower rate than the old one, which can turn into a reduction of the installment, or an additional sum in favor of the customer. This is possible right now because interest rates are lower than five years ago.
How to calculate the salary loan
To get a general idea of the possible monthly installment to pay for your loan, you need to make an easy calculation: divide your net salary or pension into five parts. The fifth obtained by this division is the maximum installment that you are able to pay for a possible contract stipulation for the salary loan. Once the maximum installment that can be paid is found, the duration will be determined according to the amount to be obtained.
Who can request the salary loan
Anyone with a salary or pension can apply for the salary loan. Let’s see together what are the criteria to be respected:
- Be a public, state, municipal or private company employee with at least 16 employees
- Being a pensioner (excluding the category of pensioners with civil disability)
- Having an open-ended employment contract
- Have a pension of an amount equal to or greater than approximately 650 dollars
- For pensioners aged 80 and over, 86 at the end of the loan
Employees of private companies with at least 16 employees can apply for a loan with the salary loan, the approval of which always remains at the discretion of the bank or financial which in the assessment considers the solidity of the company and the seniority of the employee’s service (plus the company is solid and has been hiring with it for a longer time and the better the chances of obtaining financing).
Employees of public or state bodies must have an open-ended contract, for them it is much easier to obtain financing since “the public place” offers greater guarantees to bank or financial intermediaries than employees of private companies.
How to request the salary loan
Once you have analyzed your financial situation and ascertained that you have an open-ended employment contract with a solid private company or a state-owned company, you have to choose who to contact.
Usually the bank or financial intermediary produces a personalized quote to the customer based on their personal data and the sum requested.
The personalized quote must be proposed with the SECCI model: a document containing all the details relating to the financing proposal, mandatory by law, which the customer must carefully view before signing the contract.
Once the client has assessed the financing proposal together with the consultant who drew it up, the process for assessing the feasibility status can be started.
The feasibility of a loan is always at the expense and discretion of the banking or financial institution which may or may not agree to finance a customer.
After the positive acceptance of the proposal by the customer and the passing of the feasibility test, the contract can be signed which will be binding on the customer and the banking or financial intermediary from that moment on.
Who to rely on for the request for the transfer of a fifth of the salary or pension?
The choice of the bank or financial institution to rely on for one’s own operation is always complex and requires careful analysis.
Normally we turn to those entities or financial institutions that represent a certain reliability and solidity on their territory or nation. However, the elements to be evaluated are different and we want to list them below:
- Group solidity and seriousness
- Registration in the register
- Presence of agents or offices in your area
- Reliability and positive reviews online
- Favorable rates
- Consistency and correct customer information
With our company you have the possibility to request a quote and be followed by a real bank or financial affiliate to this blog. The estimate is not made by us, but by an operator of the sector who relies on the blog to offer the product loan to subsidized taegs.