The assignment of a fifth of the salary or pension has a typical function which makes it a single loan, even though it is still a loan belonging to the category of “personal loans”. This uniqueness is also reflected in the determination of interest rates, which take place in different ways depending on whether it is a transfer of the fifth Social Institute, Government Agency or proposed by a bank or a financial company without active agreements with public bodies.
Let’s analyze the different situations together, remembering that regardless of the type, a fixed rate will always be applied unchanged for the entire amortization plan.
What are the differences
Let’s start by stating that the rates of the transfer of the fifth are not always determined completely autonomously by the person who performs the function of “lender”. This limit can be linked to multiple aspects and conditions, which we can divide once again according to the lending institution and the type of financing.
We speak in this case of the proposals for the transfer of the fifth of the pension that some banks and financial companies offer to Social Institute pensioners on the basis of a special agreement with the pension institution. Precisely on the basis of these agreements, the credit institutions undertake to maintain rate levels below the threshold which is indicated on a quarterly basis by the Social Institute itself.
The rates on the disposals of the fifth Social Institute addressed to pensioners are determined considering the trend in market rates or, better, on the basis of their average value. We reiterate how the threshold rate will indicate the value beyond which the signatory companies will not be able to go, while it is always possible to propose improvement rates compared to this maximum value. It should be emphasized that this type of financing also has facilities inherent in the procedures, which are considerably leaner than the ‘classic’ sales.
Government Agency direct multi-year loan
This is a loan against the assignment of one fifth of the salary or pension, for which a fixed rate is applied which can be modified only by means of a specific regulation. This must be issued and approved by the same body (the current one dates back to 2011 and the decision is now up to Social Institute ex Government Agency). Precisely on the basis of this regulation, the rate is still equal to 3.5%.
But beware the long-term loans disbursed directly by the national pension institution have a series of constraints, being available only within specific sums and for certain reasons which must be demonstrable, with disbursement until the ceiling allocated periodically does not end.
Government Agency indirect multi-year loan
Like the Social Institute transfer, the rate levels must remain below the threshold established with specific agreements with the former Government Agency. Also in this case, within this ceiling, each bank can then independently define the possibly lower applied rate compared to another credit institution.
Sales without restrictions or specific agreements
The assignment of the fifth without agreements addressed to public, private and retired employees resumes the criterion of the “risk” typical of loans in general. Precisely for this reason, a lower rate is applied for the categories with lower risk logically represented by civil servants who generally also enjoy higher maximum amounts granted.
A choice that may seem senseless since the risk discourse appears marginal in the transfer of the fifth. It is in fact the employer who performs the task of paying the installments “upstream”. Having said that, a public administration cannot face the risk of bankruptcy or other insolvency procedures as could happen for a private company.
Precisely for this reason, the rate applied to the private employee tends to be higher, followed by that for pensioners, for whom the age factor and the most frequent health problems weigh above all. A private employee can obtain lower rates if he can take advantage of the agreements that a bank or a financial company have personally entered into with the company itself, but this is a possibility normally reserved only for larger companies. Differences can also occur depending on the type of company or company for which employees work (not surprisingly, some types of business or companies are never considered assessable for a sale of the fifth).
Do you get a lower rate online?
We are used to the not inconsiderable differences between costs or prices to pay for online products or services compared to traditional channels. However, when it comes to the rates on the assignments of the fifth, the discussion becomes more complicated. In fact, even when we turn to a bank or a financial company that operates mainly online, we are faced with treatments that are not always homogeneous.
It is therefore essential to have a quote made by several lenders. This is released only after having communicated all the main personal and company information, pension institution or administration. In fact, the rates are also determined on the basis of the solidity and level of risk of the company or body for which you work.
Once in possession of the various estimates, it is necessary to compare them and evaluate the solution most in line with your needs also on the basis of some aspects not totally inherent in the rate applied, such as the compulsory insurance premium (of which in some cases will take over the bank or the finance company instead of making it pay to the financed, etc.).