Better assignment of the fifth or personal loan – The best solution
The sale of the fifth falls into the macro category of personal loans. But in addition to wondering what is the best bank or financial institution with which to turn on the financing to obtain the liquidity you need, and where it is convenient to make the request, there is also the question to be resolved if it is better to sell the loan or the loan ‘traditional’ staff. However, since we always remain within the category of non-finalized loans, we try to understand the differences first.
What is meant by ‘personal loans’?
The category of so-called “personal” loans is in fact very broad, as it includes all those loans that are not aimed upstream at a specific job that must be demonstrated and / or demonstrated. This does not mean that the liquidity obtained with them cannot be used to make a “specific” purchase such as the purchase of an electric appliance, a car or to carry out renovation work.
At the request stage it is simply not necessary to justify its use, which is a simplification in the start-up phase of the practice, because as documents only the income and personal documents must be presented, and there will be no evaluation on the conformity of the cost estimates or invoices to be reimbursed. This aspect represents the greatest analogy we can find between a salary assignment (both salary and pension) and a ‘normal’ personal loan.
Assignments and personal loans: comparison and differences
So far, therefore, we do not have sufficient information to consider whether it is better to give a fifth or a personal loan. So let’s go and dig out what are the main differences:
In the fifth assignment it is not the bank or financial proposer that decides the maximum duration that can be granted. Within the limit dictated by the applicant’s age (which has weight especially in the case of pensioners), it is the legislation that introduced this type of loan to establish that it may be up to 60 or up to 120 installments, while the minimum is fixed however at 24 installments. These differences on the maximum duration originally chosen have weight especially if you will have to request renewal before the deadline.
In the classic personal loan, on the other hand, every bank and every financial institution can establish durations much more freely. So only from the average point of view we will find minimum durations of 12 installments while for those maximum we will be around 72 or 84 installments, but also in this case there are exceptions that can reach up to 120 monthly payments (among the examples we have Viloan and Astro Finance ).
Maximum amount allowed
The personal loan leaves more freedom in determining the installment to be repaid, being able to arrive at a ratio of one third between installment and income (see also Loan refused ), while in the transfer of the fifth at most it reaches 20%. To these limitations we must also add the aspect of the transferable quota which remains a sort of deductible which cannot be overcome for the transfers. What allowed the transfers to grant greater sums was simply the possibility of being able to take advantage of longer terms, but today the situation has changed thanks to financial companies which, even in personal loans, as already mentioned, allow the use of up to 10 years repayment.
Creditworthiness of the applicant
The way in which the fifth loan is repaid allows you to bypass the question of reliability assessment, and therefore of the creditworthiness of the applicant, which is not the case in personal loans where both maintain a central role. For these reasons, therefore, the assignment of the fifth can also be requested by bad payers and protested, while in a request for a standard personal loan if you do not have an impeccable credit reputation, in all likelihood you will face a rejection.
Before granting a loan, the banks and the financial companies, in carrying out the various checks, must also assess that the applicant does not have too many loans already in progress. Overall debt exposure should not exceed 35% or 40% of monthly net income. This type of control takes place in a less thorough manner in the case of the assignment of the fifth, where the grantor company must simply ascertain that there are already other assignments in progress (in this case the loan may be requested with delegation ) or that there are no existing foreclosures of emoluments. Also in this case the part of income that can be committed will in any case be 50%. For this reason the sale of the fifth can also be used to consolidate and replace loans that are already in progress, making them merge into a single installment and a single commitment.
The fifth assignment was introduced and regulated by the legislator. The personal loan does not have a specific law, but is regulated by the provisions on consumer credit, with a very general approach. These differences become very marked especially when approaching the facilitated forms, as in the case of long-term loans Inpdap.
Which one is more convenient?
The criterion of common sense must be used with particular acumen when entering the field of financing. In this sense therefore the principle based on which it is better what responds with greater adherence and specificity to the type of necessity that must satisfy is worth. Therefore from a very general point of view it is not possible to determine a priori if it will be better to transfer the fifth with respect to the personal loan, and this is also due to the fact that not everyone can access the first form of loan. In fact, we cannot overlook the fact that only employees (and among these there may be further limitations) can apply for it together with pensioners.
Then we must also consider the fact that you can experience a particular situation such as being a protestor or a bad payer, or having too many loans already in progress. All situations that would not allow you to opt for a personal loan, even if this was more convenient, at least on paper based on a regular quote.
The salary assignment has a peculiarity: you are obliged to take out insurance against the risk of premature death and job loss. This obligation becomes a mere possibility in the case of personal loans. However, this unequal condition does not make the overall rate applied on a fifth of a loan comparable to a personal loan comparable, unless the following assumptions occur:
- on the assignment of the fifth is the bank or the grantor financial institution that bears the cost of the prize;
- for a personal loan, a quote is made that also includes the cost of the “optional” insurance premium.