Loans to pensioners are, as the definition itself suggests, loans granted to all those who receive a regular pension, which is provided by Social Institute or by other social security funds. If until some time ago a pensioner encountered some difficulty in being granted a loan since the age limit, once rigidly fixed at 75, effectively prevented the same from repaying the due “in time”, today things have changed.
In fact, there are many proposals on the consumer credit market for this category and very often they are more competitive and advantageous financial products than standard personal loans. There are, for example, special concessions for Social Institute and ex-Government Agency pensioners, or for former state and public administration employees, who can access particularly preferential rates and special conditions.
Let’s see together the various types of loans to pensioners and any facilities.
Retired personal loans
Retirees can have access to classic personal loans just like citizens who are still working. Indeed, one could say that retirees are potentially more facilitated than other categories because being a pensioner makes the monthly income on which the loan is granted certain and demonstrable.
The only limits against which they can be discounted are the personal data; if we consider that these loans can last up to 10 years, it became difficult to have access to this credit in all its potential.
Now things are changing and the limits have risen and vary, according to the various lenders, between 75 and 90 years. For the rest, personal loans to pensioners do not differ from the standard ones: if the applicant is not reported as a bad payer and has a sufficient monthly pension to guarantee the installment, he can easily have access to these loans, even if it is preferable that he takes out insurance on life when it is not mandatory.
Transfer of the fifth on the pension
One formula considered particularly advantageous for loans to pensioners is that of the Transfer of the Fifth on retirement. This is a particular type of non-finalized loan, which allows the reference pension institution to directly withhold the amount of the installment and pay it to the financial company or bank that granted the credit.
This loan is particularly easy to obtain because the commitment that the institution assumes towards the creditor is valid as a real guarantee and allows to obtain the sum even for those retirees who do not have a very linear credit history and maybe are reported in the various SIC.
However, the fact remains that those who are retired have a “fragile” economic condition even when they benefit from a very high pension. In the ‘eyes’ of a credit institution, for example, it is a person who is exposed to a higher risk linked to the need to bear health costs. Not only that, once the work cycle is over, in case of need it is somewhat problematic to come back to increase revenue.
For this reason, the legislator, when introducing the possibility of being able to access the assignment of the fifth on the pension, also established that not all pensions can be used for the retention of the fifth of the monthly emoluments. But above all, he established that not all pensions can be used for the calculation of the fifth, since the applicant must be guaranteed at least the possibility of a minimum subsistence in order to live.
Pensions not accepted with the assignment of the fifth to pensioners
All occupational pensions, which in the previous perspective reach a minimum threshold of monthly amounts, can be used (even if they come from contributions paid as former self-employed workers). Once you have finished your work cycle you are substantially leveled in the all-inclusive condition of “pensioner” and therefore the possibility of requesting the assignments of the pension is triggered.
However, those that are provided by the state as subsistence aid, such as social allowances and minimum pensions, cannot be accepted. In the same way, invalidity and accompanying pensions cannot be used. These are intended exclusively for the maintenance of expenses aimed at guaranteeing a good care treatment for those who are recognized as beneficiaries.
The transferable share
To know the amount on which the transfer of the fifth of the pension can be calculated, simply transfer the transferable share. This is equal to the social allowance, and its calculation must be done by an Social Institute office, which must also issue the appropriate certification attesting the amount that can be used in the loan against assignment. The calculation is however quite easy, since in general the amount of the pension that cannot be touched must be at least equal to the social allowance in force for that year.
For simplicity we assume that this amount is equal to 500 USD, and that the pension received is 1100 USD per month. The calculation of the assignment of the fifth can be made on the 600 USD that exceed the monthly pension once 500 USD are removed. So, always in general, the maximum installment that can be paid will be 120 USD per month. If, on the other hand, a pension of 800 USD is received, then the transfer should be calculated on the 300 USD which exceed the 500 of the non-usable quota, for a maximum monthly installment of 60 USD.
Whether you choose standard personal retirees loans or those in the form of a fifth installment, you should always proceed with caution starting from a request for a quote. In fact, through this first cognitive phase there is also the possibility of ascertaining whether the financial or bank has an agreement with Social Institute. For this reason, it is called to apply improvement conditions on the possible loan agreement, exempting from the payment of accessory costs, or by applying lower interest rates. This principle applies both if you turn to an online bank such as Across Lender and to the more familiar Post service Italy offer, which we remember, does not finance directly but relies on banks ‘external’ to the group in order to provide the various types of financing.