The challenge of non-finalized credit: assignment of the fifth or personal loan?

If we want to make a targeted purchase, the easiest and most convenient way to get the necessary money is already marked: the finalized loan, perhaps by relying on the financial companies that have an agreement to reduce disbursement times and obtain a subsidized rate. If, on the other hand, you need liquidity that is not finalized, you can apply for a personal loan. But sometimes the most convenient road is not always practicable. This is the case, for example, of those who have a blemish in their credit history and consequently ended up on the list of bad payers. All is not lost, however. To obtain additional liquidity, you can always resort to the Transfer of the Fifth. It has slightly higher costs than consumer credit, but needs less ancillary guarantees as the solvency is certified by the paycheck.


What is the assignment of the fifth

credit loan

Employee loan is a form of non-finalized loan which is granted to employees with permanent contracts, in the public and private sectors, and to pensioners. The name comes from the maximum amount of the monthly installment, which cannot exceed 20% (one fifth, in fact) of the monthly net salary. Compared to the personal loan, it offers greater guarantees to the financial company or to the bank that grants the credit , on the one hand because the amount is directly withheld from the paycheck and on the other hand, because the lender requires the subscription of a policy: death case for retirees and loss of employment for workers. Generally the duration of the loan ranges from a minimum of 48 months (4 years) to a maximum of 120 months (10 years). Let’s take an example of a loan application with a loan of the fifth using the comparator available on this portal and assume that we will earn 1,500 dollars net per month over 3 months. With the Transfer of the Fifth we can get to pay up to 325 dollars per month (one fifth of the paycheck), for a maximum amount financed by Cream Bank over 48 months of 13,067.53 dollars (the difference compared to the actual amount obtainable, or 15,600 dollar, represents the interest expense). At 120 months, however, with Credit Online you could get a net of 26,640.36 dollars.


Transfer of the fifth or personal loan?

personal loan?

As we said, for those who do not have a clean credit history, the Employee loan is the only way to obtain a loan. But it is not the most convenient. Compared to the personal loan, the rates are higher and then you are obliged to take out a policy (in the event of death or loss of employment), the cost of which is borne by the applicant (the initial preliminary investigation costs, however, in most cases are lower). But let’s go into practice and let’s see how the scenario between the Transfer of the Fifth and personal loan changes. The simulation was carried out with the Good Lenders comparator on the basis of the following conditions: 40 year old resident in Milan, with a permanent contract and a monthly net of 2,000 dollars; amount requested 10 thousand dollars.