Is it possible to renew a Cession of the Fifth?
When we talk about a loan with a salary- backed loan, we talk about that type of loan that involves paying the installment by debiting your salary in the case of employees or your own pension in the case of pensioners.
Very often, customers who are involved in this type of financing are convinced that it is not possible to renew the current loan to obtain additional liquidity.
In reality this is possible, however, on the basis of a series of parameters both present in Presidential Decree 180/1950 which sets the first rules for the assignment of the fifth and those subsequently indicated by the Bank of Italy but also on the basis of financial criteria.
I renew the Assignment of the Fifth, after how long?
Having a salary or pension transfer in progress, it may happen that, over time, there is an additional liquidity requirement.
In the event that we are talking about a renewal of a five-year transfer, that is, a loan made for a total duration of 120 installments or 10 years, which is also the maximum duration for this type of loan, the evaluation of a renewal to obtain further liquidity can be made after at least 48 installments or 4 years (40% or 2/5 of the initial duration) have passed.
Example renewal: if today is entered into a loan with the sale of the fifth of salary or pension with these characteristics
- duration 120 installments or 10 years
- starting from February 2018
- deadline January 2028
the possibility of being able to evaluate a possible renewal of the loan to obtain new liquidity extinguishing the old one and prolonging the new one will occur at the payment of the 48th installment or at the end of the 4 years and therefore not before January 2022 .
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Is renewal possible before the age of four?
Many customers wonder if, in the event that a fifth assignment has been made for 10 years, it is still possible to renew it before the age of four. The answer is simple and concise, as of today, it is NOT possible to renew a sale made at 120 installments before at least 48 installments have passed.
If the duration is not 10 years or 120 installments when can I renew?
Rightly who has a personal loan with a fifth of the salary or pension but has not made a duration to 120 months or 10 years, you will be wondering: and if I, who made a duration of 72 months, needed further liquidity when can I ask for a renewal assessment?
As indicated in various communications from the Bank of Italy and from the legislative references, the evaluation of a possible renewal, to date, for those who are in the middle of a salary or pension transfer with one of the intermediate durations ie 24 – 48 – 60 – 72 – 84 – 96 – 108 installments / months may only take place when the 2/5 or better 40% of the initial duration have elapsed.
Example: if a person has a loan with a fifth for a duration of 72 months / installment the evaluation of a renewal can take place when 29 installments of that loan have been paid, which is equal to 40% or 2/5 of the 72 initial months.
These parameters or characteristics for the evaluation of a possible renewal are valid for the renewal of the sale of the fifth pensioner INPS both for the renewal of the transfer of the fifth employees.