An extremely useful and important type of loan to know is the one called “the loan with delegation”.
The loan with the delegation , often called “double fifth”, is a type of loan that allows you to obtain the possibility of borrowing more money than the “sale of the fifth”, through the “simple” presentation of adequate guarantees.
The loan with delegation, as we have said, is often called “double fifth” due to the fact that it allows access to a double transfer of the fifth.
The expression “assignment of the fifth” arises from the fact that the maximum amount of the installment envisaged for repayment of the loan cannot exceed 1/5 of the monthly net salary.
This type of loan allows instead to be able to request a double amount, let’s not forget, however, that receiving a double amount of money clearly implies also the doubling of the expected monthly payment (with equal number of installments).
The installment amount will be deducted directly from the pay slip which, for what has been said up to now, cannot exceed 40% of the net amount.
The loan with proxy is governed by Article 1269 of the Civil Code (Payment Delegation):
“If the debtor has delegated a third party to make the payment, he can oblige himself to the creditor, unless the debtor has forbidden it.
The third delegate to carry out the payment is not required to accept the assignment, even if he is the debtor of the delegating party. The different uses are safe. “
Laon with delegation
The loan with delegation is therefore based on the faculty of those who claim a credit to transfer it to third parties, for consideration or free, even without the prior consent of the debtor.
Since the worker has a salary, similar to credit towards the company where he works, he is therefore in a position to contract this type of loan against the transfer of a portion of the salary (credit) to the financial institution with the which signed the contract.
Both public and private employees can apply for the loan with proxy. Until recently, this type of loan was not intended for private employees, as only public employees could access it.
The delegated loan, as it is configured, therefore appears to be a contract involving 3 subjects:
- Dealer Institute
- The employee
- The employer
The concessionary institution is the institute which, upon receipt of adequate guarantee documentation, will provide for the disbursement of the amount requested for the loan. The most common payment methods are via bank draft or bank draft.
The employee is essentially the customer who requests the loan. For the purposes of article 1269 of the civil code, the employee is the party who assigns the rights to remuneration to the financial institution (within the limits of 40% of the net salary value).
The employer assumes the status of Third Party Debtor Assigned by virtue of the assignment of the credit rights made by the employee.
Loan with delegation: Main features
- Maximum duration 120 months (10 years) compatible with the retirement date. In some cases it is possible to transfer the loan to the pension.
- The planned installment is fixed and includes all expenses (fixed TAN and APR including insurance premiums).
- Possibility of debt renegotiation with the possibility of recovery of unpaid interest.
- Repayment of installments on a monthly basis.
- Obligation to subscribe to a life and risk insurance. This insurance serves to protect the credit institution from premature death or any loss of employment by the undersigned of the loan agreement.
The loan with proxy appears to be the ideal solution for those who have already subscribed a loan that provides for the sale of the fifth and which needs to increase the amount of the loan.
Although possible the request also from employees with fixed-term contracts (within the limits of the duration of the contract) the greater convenience is clearly drawn from the employees with permanent contracts (greater guarantees and longer durations).