Difference between assignment of the fifth and loan payment delegation
The assignment of the fifth and the delegation loans are widely used in the consumer credit sector. These are forms of access to credit dedicated to employees and retirees, which allow repayment of the capital in installments withheld directly from the paycheck or pension of the beneficiary. Although they are two very similar products, assignment of the fifth and delegation of payment have some fundamental differences.
The assignment of the fifth is a form of personal loan that allows you to obtain even high amounts. The repayment takes place in monthly installments withheld at source and can last for a maximum of 10 years. The maximum expected installment is equal to a fifth (20%) of salary or pension after tax. The rate is fixed.
The assignment of the fifth is presented as a right of the worker, which is why in the case of loans requested by employees, the authorization of the employer is not required.
This takes care of deducting the amount due for the payment of the installment from the employee’s paycheck and passes it on to the lending bank. In the case of loans requested by pensioners, the payment of the installment takes place by the reference social security institution.
How the Delegated Payment Loan Works
As already mentioned, the transfer of the fifth and the delegation of payment are very similar to each other. The latter in fact follows the conditions of the transfer of the fifth. The delegation of payment goes hand in hand with the assignment of the fifth, allowing an additional fifth of the salary to be transferred. The installments in fact add up to each other, reaching a maximum of 40% of the paycheck, net of taxes.
The main difference between assignment of the fifth and delegation of payment is given by the fact that the delegation loans are addressed only to employees. Pensioners are excluded from the beneficiaries.
Not only. Delegation loans are not an employee’s right, and therefore require the consent of the employer. Person who can also refuse the payment delegation, thus making it impossible to grant the loan.