Payday Loan Consolidation: Loan with Payment Delegation
February 23, 2019
All you need to know about the loan with a payment proxy. We see the legislation that regulates this type of financing and the timing usually required for the payment of the amount requested. Finally, let’s take a look at the best online offers for loans with payment proxy Astrofinance, Government Agency and Onecredit.
Loan with Payment Delegation: what it is and to whom it is addressed
The financial products in which you can meet if you are looking for a loan are of various kinds. On this page we present the loan with a delegation of payment, a solution that in many cases may be the right one to allow you to get the amount of money you need. First of all it is good to specify that it is a non-finalized loan. This means that the disbursement of the sum of money we are going to request is not linked to the purchase of a good or service, as is the case in the case of targeted loans. At the time of requesting the loan by proxy we will only have to specify the desired amount and choose the duration between those proposed by the bank to which we are addressing. So in this sense it falls into the category of personal loans, which are undoubtedly the easiest form of financing to request and which meets the needs of a very large clientele.
But what differentiates the financing by delegation of payment from other forms of financing available on the market? There are several aspects that characterize this type of loan, which is why it is good to analyze them in order to evaluate if it is the ideal product for you. The first aspect that must be considered when informing about a loan is the clientele to whom the same applies. The loan with delegation from this point of view is a special loan, as it is not addressed to anyone but only to certain categories of customers who can provide the bank with the best possible guarantee, that is a fixed income insured every month. This means that those who can access the loan by proxy are only employees and pensioners. Self-employed workers, although they may have significant gains, can not guarantee a fixed income and this, based on the characteristics of the product that we will see better later, exclude this category of customers from the list of possible applicants.
If virtually all pensioners can easily access the payment by proxy, the same can not be said for employees. In this case it is usually required a permanent contract, or at least that the repayment term is fixed before the expiration date of the employment contract in case it is just for a fixed term. Another aspect that concerns employees is the company for which they work. Public and state civil servants will have no problem receiving a proxy loan, while the same can not be said for private employees. In this case it is important the reliability of the company for which you work, even if usually especially for the employees of large companies there will be no particular difficulty in receiving a grant via a payment proxy.
Let us now look at the characteristics of the economic treatment that we will receive by choosing the loan with a delegation of payment. In short, it is in effect a transfer of one fifth of salary or pension. It is from this last product that the loan with a proxy “inherits” the main characteristics. In fact, the amount that can be requested also depends on the salary or net pension received by the customer. In particular, based on this, the maximum payment that can be deducted each month is defined, which will be equal to one fifth of the net income received. Based on this amount multiplied by the duration chosen and considering the interest rates applied by the bank to which we address, the maximum amount that can be requested will be defined. On the basis of what has just been said, we can state that the payment proxy is exactly the same as the transfer of the fifth, with the relative advantages of having fixed and light installments that are directly deducted from the paycheck or pension. Once the desired amount has been received, the customer will not have to worry about anything, because the installments will be paid automatically, avoiding the risk of late payments.
So why do we talk about a loan by proxy as if it were a new form of financing different from the transfer of the fifth. The advantage of proxy financing is to offer employees and pensioners the opportunity to access a higher sum of money. This form of financing can be requested by those who have a fifth assignment in progress. Therefore, considering the two loans simultaneously, the transferable portion goes from one fifth to two fifths. This means that for the same duration the customer will have the opportunity to receive an amount equal to twice as much as he could receive through the sole assignment of the fifth. Considering that the maximum duration of the assignment of the fifth and of the loan with payment proxy reaches up to 10 years, choosing to sell two fifths of salary is possible to receive a very large loan, useful for any kind of expenditure.
Loan law with Delegation: what the current law says
After seeing what the general characteristics of the loan by proxy are, it is important to take a look at the current legislation, to highlight any restrictions. First of all, it is good to specify that this form of financing, as well as the others that are reviewed on our site, is regulated by the general legislation on finance, anti-usury and anti-money laundering. This legislation defines credit institutions authorized to grant their clients the financing by proxy. As always, we recommend that you pay attention to who you are looking for when you are looking for any type of financing. Above all, online it is easy to run into loans that seem extremely cheap but that turn out to be only scams. For this reason, to receive a loan with delegated payment, you must always contact authorized banks and financial institutions, which will certainly be reliable.
The general regulations on loans are flanked in the case of loans granted by the art. 1269 of the Italian Civil Code. The latter in fact defines the possibility for the employee to authorize his employer to withhold a portion of the remuneration to be paid into the creditor’s coffers. This as we have already seen is one of the main features of the loan with a proxy that therefore fully respects what is defined by the regulations in force. Another fundamental aspect that is defined by the law in force is that of the interest rates that can be applied by the lenders that offer loans with proxy. As with any form of financing, the anti-usury regulation defines the maximum annual interest rate that can be applied to the sum of money paid out. In this sense, the so-called usury threshold is defined, beyond which the loan granted is illegal.
Although all major credit institutions keep well below the usury threshold, it is always good to know the legislation to avoid accepting too unfavorable economic conditions. On the basis of the provisions of the law in force, the threshold for the use of the loan with a proxy for payment is the same as that for the sale of the fifth. The latter is regulated by articles 1260 and following of the civil code and by Presidential Decree no. 180/1950. The rates of usury currently valid for the transfer of the fifth salary and pension and therefore also for the loan with delegation depend on the amount requested. In particular, for loans up to a maximum of € 15,000, the usury threshold is set at 18.56%, while for loans of a higher amount the maximum rate applicable is equal to 14.89%. In any case, we must consider that these are limit thresholds, clearly higher than the rates usually applied. Suffice it to say that the average global effective rates applied are equal to 11.65% in the case of loans with a delegation of up to 15,000 euros and 8.71% for higher amounts.
All the characteristics of the loan with payment proxy are obviously defined by the regulations we have just listed. Regarding the maximum installment, this as we said is equal to one fifth of the salary or net pension received. As regards the duration of the loan, the legislation states that this must necessarily be between 18 months and 120 months. Furthermore, as previously mentioned for employees with fixed-term contracts, the limit is defined for which the repayment term must be fixed by the date of expiry of the contract. Moreover, again with regard to employees, it is specified how they can have access to the loan by proxy only those who receive a fixed and continuous salary and have passed any probation period. Finally it is necessary that the applicant is from the insurance policies also envisaged for the sale of the fifth, namely insurance policies at life risk, loss of financial risk or credit. Lastly, it should be specified that life insurance policies and those that protect the insured in the event of disability, sickness or unemployment do not fall within the items that constitute the annual percentage rate of charge, as these are policies required by law.
Financing with Delegation: what is the timing for the disbursement?
Among the characteristics that most of all are sought in a financial product, one of the main ones is surely the one concerning the timing. How are waiting times for delegated financing? If you are interested in receiving a loan by choosing this solution you will be pleased to know that it is one of the solutions that provides the shortest time ever. First of all, the first aspect to consider when evaluating the delivery times is the request mode. In the case of a loan with a delegation of payment, as in the case of the transfer of the fifth, in most cases the banks and financial companies offer their customers the possibility to make the request directly online. This greatly simplifies the bureaucratic times, considering that you save yourself from having to make an appointment and that maybe for different commitments you do not have the possibility to go to the branch in the day. All this delays the loan request and consequently also the disbursement.
Another factor that determines the timing of a loan is that relating to the various checks that the bank must make to ensure that the customer is reliable. Therefore the bank’s consultants will have to analyze the credit history of the client to verify that there have been no problems in the past. This is the case of those who have been reported as bad payers, who very often can not have access to the desired credit. In the case of the assignment of the fifth and also of the loan with payment proxy the times for verification are also considerably reduced. In this case, in fact, the income guarantee constituted by the paycheck or by the pension slip represents the best possible guarantee, precisely because it is an insured entry every month from which it is possible to retain the agreed monthly repayment installment. This is the reason why even bad payers can access this form of financing.
Therefore, based on what has just been said, we can state that the timing of loans with payment authorization is extremely short. Obviously, the days required to have the desired amount of money available may vary slightly depending on the credit institution we are addressing and the amount requested. For sums of money lower as usual, the disbursement is almost immediate, while the same does not always occur for high amounts such as those of the loan with payment proxy. In general, however, even according to the opinions of the users we found online, usually the delivery times are around 48 hours or so. So you can easily talk about fast loans, which are very useful in case you have to face expenses with a certain urgency.
The best online offers of Loan with Delegation of payment
We have seen all the general characteristics of the loan by proxy. This loan is usually one of the most convenient in circulation, and for this reason it is always in great demand by employees and retired people. In particular, all those who have a fifth sale in progress and need additional liquidity can choose this solution. Below we present some of the best online offers currently available with regard to the loan with a delegation of payment. As always our recommendation when you have to choose the ideal product for you is to request different quotes from authorized credit institutions, and compare the expected conditions.
One of the main companies that can be contacted to obtain the loan by proxy is Astrofinance. This type of financing is provided in the range of products offered to its online customers. The main features of the offer are the same as those envisaged for the sale of the fifth. So fixed monthly installments equal to one fifth of the salary or pension received, which are paid directly by the employer or by the social security agency Among the advantages of the loan by proxy offered by Astrofinance is the important savings on the management of the practice. As pointed out on the company’s website, in fact, there is no cost for the opening of the file, as is the case with other credit institutions. Furthermore, there are zero expenses for bank and brokerage commissions, which makes this offer very interesting. Moreover, the amount that can be requested through the sale of the fifth loan and the proxy with Astrofinance can be very high, considering that the maximum duration can be up to 10 years.
The Astrofinance proxy loan can be requested from any branch of the company, and no additional guarantee is required in addition to a permanent employment contract or a pension slip. Unlike other financial products, the signature of the spouse is not required to proceed with the request for funding. As mentioned previously, an important aspect of the assignment of the fifth and of the financing by proxy is that related to the compulsory insurance by law. To find out the costs of funding offered by Astrofinance you can proceed with the calculation of a free online quote. In this way it will be possible to know immediately the monthly repayment installment and the applied Tan and Taeg interest rates. As pointed out in the details of the offer, the annual rates are inclusive of all foreseen expenses, including the life insurance policy and the employment risk for employees.
Among the best financing offers, as always, are Government Agency subsidized loans. Among the products that are included under this item we also find the loan with a delegation of payment, which we deal with on this page. In particular, the former Government Agency management has now passed to Social Institute, however, there is still frequent talk of Government Agency loans. This is because the conditions of the loans have remained almost the same, and aim as always to provide the best conditions to its customers. It is good to specify that Social Institute ex Government Agency proxy lending offers are not provided directly by the social security institution, as it might seem from the name itself. In order to offer employees and retired employees loans with payment at favorable conditions, Social Institute has set parameters for its loans. In particular, the maximum interest rates and the general conditions of Social Institute loans were defined.
Social Institute, as well as Government Agency, is not a credit institution, and therefore does not deal with offering its customers the money they need directly, but it does so indirectly. How? It was entered into an agreement with some of the major banks operating in Italy. In this way, the offer of Social Institute loans with proxy is provided by the affiliated companies. For customers this is a great advantage, as they can have the guarantee of the lowest rates in circulation. To find out the conditions of the loans with an Social Institute ex Government Agency payment proxy, simply contact one of the banks that signed the agreement with the social security institution. The complete list of affiliated institutions can be consulted directly online on the Social Institute website. As always, just request a free estimate to evaluate the advantages and disadvantages of the offer and choose whether or not to proceed with the request for funding.
Among the credit institutions affiliated with Social Institute, in addition to Astrofinance we have seen previously there is also Onecredit. So we are talking about leading companies in the industry, whose reliability can certainly not be questioned. On the website of Onecredit we find the details of the offer, which are certainly very interesting. First of all, it is also specified in this case that it is a non-finalized loan, for which no expense documentation is required. Furthermore, another very important aspect of the Onecredit delegated loan is that no asset or real estate guarantee is required. The only requirement required as always is to be employed or retired. Among the advantages of the Onecredit online offer there is one very important one that concerns the compulsory insurance by law. As is pointed out on the company’s website, in fact, the costs relating to the policies will be borne entirely by the bank, which entails considerable savings on the loan.
Regarding the economic conditions of the sale of the fifth and the loan with the authorization of Onecredit, some distinctions are made based on the client making the request. In particular, as regards the amount that can be requested, public employees can access a sum of money that reaches up to 72,000 euros. A little less can require retirees, which as mentioned above can take advantage of the Social Institute convention and in this case can get an amount up to 69,000 euros. If you were a private employee the amount payable will be lower but still important, as it reaches up to 47,000 euros. If you are interested in the offer of Onecredit for the sale of the fifth or the loan with a proxy to pay just ask for a free quote via the website. On working days will take 4 hours to receive a detailed cost estimate by a fully dedicated consultant.