Employee loans fall into the large category of personal loans provided to employees in the public, private and state sectors.
One of the most important features of these loans is that they ” are not finalized”. In this sense, then, the one who will request the loan, will have no obligation to indicate the motivation that prompted him to request that sum. Afterwards we will discover the forms of financing for the most common employees, the methods of disbursement and the guarantees required by the bank or the financial institution.
Loans for employees: the sale of the fifth
The most common form of loan disbursement for employees is the sale of one-fifth of salary . In particular, the loan installments are directly deducted from the applicant’s paycheck. It is the employer who takes responsibility for the punctuality of the payment.
The law, however, provides for an important limitation: the amount of the deduction can not exceed the limit of one fifth of the salary or 20% of the net paycheck. It is important to underline that, if the employer allows it, it is also possible to make a second deduction on the paycheck. In this way the worker will pay an installment that will not exceed 40% of his salary.
Loans for employees: the characteristics
This type of personal loans presents a series of characteristics that tend to be repeated in all the loan contracts. In particular:
- the maximum amount is variable: in fact, it may depend on the duration of the loan, the salary received and the age of the applicant;
- the paycheck is the only guarantee requested by the institution that provides the loan;
- the loan is not finalized;
- as a rule, an insurance policy is also taken against the risk seen and against the employment risk;
- the possibility of extension is allowed up to 120 months;
- the loan can be terminated early ;
- the assignment of the fifth can be renewed.
Usually loans with a fifth sale are paid in little more than 24 hours. Furthermore, interest rates remain fixed for the entire duration of depreciation, which stands out for transparency and flexibility in payments.
To apply for the loan, the worker must present the following documents to the bank or financial institution : the identity card or the driving license, the tax code and the last pay check or CUD model.
Loans for employees: who can request them?
They are essentially aimed at employees who present a paycheck as security for the loan. In particular, the categories of workers who can request it are: permanent employees, fixed-term workers, workers with training or apprenticeship contracts.
The guarantee of paychecks means that banks and credit institutions apply valuation criteria that are much more flexible than other types of loans. In particular, permanent workers will be required to demonstrate that they have been working for at least three months. For workers with a fixed-term contract , on the other hand, banks could grant a loan with the same duration as the contract of employment.
It is also important to underline that employee loans are normally also provided to bad payers or to protested individuals. The pay check, also in these cases, is an excellent guarantee for the banks.
Loans for private employees
As we have pointed out above, even private sector employees can apply for and obtain an unfinalized loan. Even this category of workers can offer the paycheck as a guarantee. The sale of the fifth is one of the most used formulas but, in the private sector, it often happens that the employer does not accept the loan.
Other forms of loans for private employees are: salary delegation, debt consolidation and traditional personal loans.
Private sector workers who want to apply for a loan must submit the following documents: the CUD model which proves and certifies its monthly income and a copy of an identity document.