As many perhaps already know, today there are different forms of financing, more or less known, each of which lends itself to be used for certain purposes, rather than for others.
Among the various existing possibilities, the salary loan is certainly one of the most unique, if one takes into account, among other things, that this type of financing exists only in Italy!
In fact, it was born even with the unification of Italy in 1861 and is regulated by a decree dating back to 1950.
What is salary loan?
The salary loan is a loan, the payment of the installments of which is made by direct deduction in the pay packet, up to the maximum of the loan (20%) of the monthly net salary. For example, with a net salary of USD. 1,000.00, the maximum installment that can be used will be USD. 200.00 (that is, USD. 1,000.00 divided by 5).
This payment is then made directly by the employer, who undertakes to pay the installment amount directly to the financial institution.
What advantages does salary loan offer?
Let’s see specifically the advantages that the salary loan has compared to other forms of financing:
Unlike most loans, it can be granted for a duration of up to 10 years! This means that, even with a relatively low installment, interesting amounts can be obtained, without placing the monthly commitment on the family budget too much.
The rate is fixed, moreover, for greater protection, both of the lending institution and the applicant, there are two compulsory insurance coverage, already included in the loan and valid for its entire duration: a life insurance that covers the death case, and one relating to employment risk, which takes place in the event of job loss.
salary loan is granted on simple request, that is, without having to present any reason and without the need for any further guarantee if not your own individual signature, regardless of the amount financed.
Generally, disbursement takes place in a short time, with the possibility of earning advance payments without additional additional costs.
Who can apply for salary loan?
Due to the payment characteristics it presents, it is clear that it is a loan reserved for those who have an employment relationship, that is only for employees.
In particular, all state, public and para-public employees, as well as employees of private companies – in this case only if they are joint stock companies – can by right access to the loan.
Considering the numerous advantages and facilitations it presents, the possibility of requesting it has also been extended to the category of pensioners. In this case, the installment is charged directly by the pension institution to the net monthly pension, always within the maximum limits of a loan.
In general, the age of the pensioner, up to the expiry of the operation, can even go up to 85 years!
It does not end here …!
If this should not be enough to make us consider this loan truly unique, we can also add that the advantages of salary loan are not only for those who request it but are also for the institution that provides the funding, because the withholding directed by the salary or pension, guarantees the regular payment of the installments at the due dates for the established duration, without running the risk of insolvency. In general, this allows for more favorable conditions to be applied to the employee or pensioner who request it, compared to other forms of financing, and for the same reason, the presence of other commitments already underway , or problems such as protests or delayed payments, however , do not prevent salary loan.
In short, it is clear that for an employee or a pensioner, the salary loan offers really excellent advantages, from all points of view.