The retirement loan sector is somewhat advantageous. Those who have worked a lifetime and today “enjoy” their well-deserved pension can request financing at advantageous rates, for any purpose.
How to choose the best loan for retirees
We obviously start with the way you can find the best financing for your needs, the most convenient one. Internet is the solution, with online loans that are excellent solutions that can meet every need.
The advantage of applying for a loan online is that the interest rates are lower than what could be obtained in a bank or in a “brick” financial company. The conditions and ancillary costs are also usually more convenient and loans can be obtained at no additional cost.
All this, of course, in the maximum security and privacy of every search or transaction that is made, without forgetting the speed with which you can be able to receive loans requested on the internet. Another type of loan for retirees is the life-long one.
In essence, this loan allows you to get a certain amount of money by giving collateral to a property. The amount obtained depends on the age of the applicant and the value of the real estate guarantee. For more information, please refer to our in-depth study on mortgage lifetime loans.
Who are the pensioners who can apply for a loan
In principle we say that all pensioners who have a retirement pension can apply for loans for pensioners.
We distinguish between two types of pensioners:
- of the public sector
- of the private sector
In the first case, we still speak today of Government Agency loans (or ex-Government Agency), while in the second case we speak of Social Institute loans. To date there is no difference, in terms of funding, between these two categories.
Can all pensions get loans?
No, there are some pensions that cannot be used to apply for a loan, as is the case with loans with a social pension or with loans with a minimum pension. To find out more, please read the list of pensions excluded from the assignment of the fifth.
The main pension institutions
If it is true that most of the pensions are managed by Social Institute, the largest pension institution in our country, it is also true that there is not only this institution that deals with pensions.
There are others that are more suitable for particular categories of workers, among which we mention:
- Italian pension and assistance fund for freelance surveyors;
- National Social Security Fund and forensic assistance, for lawyers;
- ENPAF, National Body for Social Security and Pharmacists Assistance;
- INPGI, National Insurance Institute for Italian Journalists;
- ENPALS, National Social Security and Assistance Agency for show business workers;
- ENPAM, National Body of Social Security and Assistance for Doctors and Dentists;
- ENASARCO, National Agency for the assistance of agents and sales representatives;
- Notarial Fund.
Until 2011, Government Agency was added to these bodies, which addressed exclusively workers in the public and ministerial sector, managing their pensions and granting loans (the so-called ex-Government Agency loans, of which there are small loans).
In order to cope with the high debts, this institution was then dissolved and incorporated into Social Institute, which had always been specific for private sector workers.
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What the pensioner must do
You simply have to request the communication of the transferability of the pension. It can be obtained by applying at the competent Social Institute office, the one closest to where you live.
Within a few days, this communication will be ready and can be withdrawn by the pensioner in order to deliver it to the bank or financial institution in order to be assessed to decide whether or not to grant the loan.
If the pensioner chooses to contact an Social Institute affiliated bank (or an Social Institute affiliated finance company ) then the communication will be sent directly by the pension institution to the credit institution, allowing a saving of time in order to obtain the money.
The installment to be paid
The pensioner loan is granted in the manner of the transfer of the fifth (of the pension). Basically, the monthly installment of the loan is deducted from the net pension and paid directly to the bank or financial institution’s coffers. The maximum installment is equal to 1/5 of the net pension received.
The advantage is that one must not remember having to pay the installment month after month and, above all, that bad payers can also resort to this type of loan.
The minimum pension
The fundamental concept to keep in mind at all times is that of the minimum pension, or the minimum amount established by law that each pensioner must receive per month in order to live with dignity.
The difference between the net pension you receive and the amount of the monthly installment (calculated as we said a little above, or 1/5 of the monthly emolument you receive) must never be less than the minimum pension.