How to get funding for bad payers in 2017
Loans to reported exist? The answer is yes. Although it may seem like a paradox, there are banks and financial companies willing to grant personal loans to those who are reported in the lists of the central risk fund as bad payers.
Obviously, the fact that there are subjects willing to grant loans to those reported does not mean that the conditions applied are those envisaged for traditional personal loans. In fact, these are loans that are different from all the others and that are not very easy to obtain.
Banks and financial institutions fear that a person who has had difficulty repaying a loan will not be able to meet the new loan deadlines. So let’s see under what conditions you can get loans to reported.
Characteristics of loans for reported Crif
Personal loans for reported Crifs firstly provide for a higher interest rate than those applied to normal loans. This is because the applicant’s risk profile is high and the bank charges very high interest to protect itself.
Without this clarification it is necessary to clarify another very important point, namely that the loans to reported can be of various types, ranging from the transfer of the fifth to loans with bills. But let’s see in detail the main personal loan solutions for bad payers reported to Crif.
The assignment of the fifth
When it comes to loans for bad payers, the most frequently used solution is the assignment of the fifth. It is a form of personal loan that allows you to access even large amounts to be repaid with an amortization plan that extends for a maximum of 10 years.
The monthly installment is deducted directly from the payee’s paycheck or pension check. Installment that cannot exceed the fifth part (20%) of the pension or net salary received by the applicant.
In other words, the repayment of the debt takes place by the employer or social security institution that pays the pension. In fact, the institution or employer takes care of reducing the monthly installment and paying it to the bank or financial institution that granted the loan.
Characteristics thanks to which the lender can grant financing even if the applicant has had problems in repaying an old loan. The conditions applied vary from institution to institution, but normally the repayment plan starts from a minimum of 24 to a maximum of 120 months. The interest rate is fixed.
The necessary guarantees
Let’s move on to the issue of guarantees. The particular structure of the assignment of the fifth does not foresee that the applicant must present collateral in order to obtain the credit. However, the financing finds a form of guarantee in the pension due, if the applicant is retired, or in the TFR accrued by the worker.
The TFR and the pension have a protection function for the credit institution which provides the loan against the risks of death, loss of job and accident of the beneficiary.
The law also provides for the signing of a compulsory insurance policy that covers both life and employment risks. It is essential to specify that this insurance must guarantee, in the event of default by the beneficiary, the coverage of the residual debt possibly exceeding the accumulated severance indemnity.
Who can get it
Loans on assignment of the fifth are accessible to both employees and public and private pensioners. For workers in service activities, the presence of an open-ended contract is preferable, however it is possible to obtain financing even if you have a fixed-term contract. In this case, however, the loan must be extinguishable within the validity period of the employment contract.
The alternatives to the assignment of the fifth
But what are the alternatives to the assignment of the fifth? Those who are not holders of an employment contract or a pension, and therefore cannot apply for loans on assignment of the fifth, still have the opportunity to obtain credit.
There are in fact other solutions of loans to reported which can also be accessed by self-employed workers and those who do not have a job income. Among these we mention the loan changed.
Pros and cons of the loan with 2017 promissory notes
Loan with bills is a form of personal loan in which the monthly installments correspond to bills of exchange. The amortization plan can go up to 10 years, but in principle banks and financial companies do not grant credit lines that reach a maximum of 72 months.
Being a debt security, the bill of exchange allows the creditor to quickly and easily repay the money lent in the event of default by the beneficiary. In this case, in fact, it is possible to request the attachment of the client’s assets without having to start a lawsuit.
The interest rate is fixed and much higher than that normally applied to traditional personal loans. At the same time, however, it should be considered that the repayment plan can be modified according to the beneficiary’s needs.
The lender that grants the loan can in fact choose to issue new bills of exchange or to renew those that the applicant is unable to pay on time. Situations in which, however, additional costs may be applied by the lender.
Loans between individuals without guarantees
Those who do not have any guarantee can also resort to loans between private individuals, thus borrowing the necessary money from friends or relatives. This is a solution provided by Italian law, but in any case in order to avoid any tax assessment it is advisable to stipulate a private agreement.
Finally, we find personal loans on pledge. A solution to access to credit that has come back into vogue with the economic crisis and falls fully into the category of loans to reported. Its operation is rather simple and involves the presentation of a valuable asset that is placed as collateral for the loan.
Patrimonial investigations are not required and the sum is granted in a very short time, in some cases even immediately. As for the amount payable, this is defined on the basis of the market value of the object presented as collateral which is subjected to an estimate.