Salary-backed salary assignment: why choose it?

Sale of the Fifth Salary: why choose it?

Today more than ever, it may happen that you need liquidity to be able to carry out a project or for other needs, and unfortunately, with your own strength, you often cannot recover the necessary sum.

What to do then?

If we don’t have someone who can intervene to give us a hand, most of the time we consider asking for a loan, but on many occasions we can’t figure out which product is right for us.

Why then choose the Cession of the Fifth?

Let’s see what are some points that characterize this product:

  • the maximum duration can be up to 120 months
  • the installment is fixed for the entire duration of the loan
  • the rate is fixed for the duration of the loan
  • the maximum installment is 20% of your net salary
  • it can also be granted to those who have had payment delays

these are just some of the features of this type of financing.

Can a freelancer request it? Who can apply for a salary-backed loan?

Can a freelancer request it? Who can apply for a salary-backed loan?

It is necessary to make some clarifications and specify which categories of workers can request it:

  • state, public and private employees and employees of companies owned by the public;

therefore a freelancer cannot ask for a salary assignment , since he does not have an employment contract and therefore not being an employee, he cannot decide to sell his fifth in exchange for a loan.

Another important feature of this type of financing is that the employer, of the employee who wants to request the transfer of a fifth of the salary to a bank or financial institution, will not be able to refuse as it is an employee’s right to sell his fifth.

A right that arose, even in 1950 with Presidential Decree 180 concerning the seizure, attachment and assignment of salaries , the original decree which introduces a salary-backed salary in our system.

Obviously it is also important to remember that over the years there have been a series of changes and additions that have “updated” the subject.

What are the features that are evaluated for this product?

We can therefore say, listing some conditions and necessity that the assignment of the fifth can be evaluated and requested by whom :

  • he is an employee
  • look for a fixed rate for the duration of the loan
  • could have an alert for irregular payments
  • does not want to pay with bills
  • does not want to pay by debit account.