Loans to disabled civilians who have been protested or bad payers : are they possible? The world of credit presents opportunities and barriers depending on the individual case, and certainly the type of request in question is coming up against two problems: the first is the civil invalidity itself, which in terms of rules and regulations in force on the matter is not financed, unless it is associated with another transferable pension on which to apply the calculation of the installment for the amortization of a capital with the related interest to be repaid. And then there is being protested or bad payers, or reported in the appropriate lists according to the codified and regulated timing, which makes it difficult to access credit already to those who are in normal conditions from a physical point of view, and do not suffer of any disability that affects one’s own working capacity, even more so for disabled people who require financing. However, we must not despair, since loans to disabled civilians who have been protested or bad payers are absolutely possible, however difficult to obtain, by resorting to the sale of the fifth as financial security.
What is civil disability
Before going into depth on the possibility of lending to civilian protesters or bad payers, it is good to remember what the law prescribes regarding the definition of civil disability, for which
They are considered civilian disabled or invalids citizens suffering from disabilities congenital or acquired, even at the progressive nature (including psychic irregular for oligofrenie of organic character or dysmetabolic or mental insufficiencies due to sensory and functional defects), which have undergone a permanent reduction of work capacity of at least one third or, if minors, with persistent difficulties in doing homework and in the functions proper to their age
The minimum degree of reduction to have the status of invalid civilian is set at 33 per cent, according to the determination of a specific table prepared by the Ministry of Health. Disabled invalids of war, invalids of labor and invalids of service are not included among the disabled invalids, or recognized as such for specific reasons deriving from the war, from work for private workers, or from a service for public employees and categories assimilated.
Sale of the fifth disabled civilians
The best solution for those who are disabled civilians and have spent a protested or bad payer is to resort to the sale of the fifth of the pension, which is very often the only possibility of access to credit for those who have had past financial problems, having the guarantee sufficient for a credit institution dictated by a fixed and certified income. We stress once again that the share of the transferable pension cannot be that of disability, but it is necessary to have associated another form of income on which it is possible to apply this financing formula. The assignment of the fifth presents these basic characteristics:
- The loan cannot exceed 20 per cent per month of the net amount of the pension slip (one fifth of the total)
- The duration is between 24 and 120 months
- There are age limits for the applicant for access to credit, which vary according to the type of institution they are addressed to. Generally the maximum possible is 89 years at the end of the financing
- Compulsory insurance for pensioners
- The installments are at a fixed rate for the entire duration of the loan
- No supporting documents are required
- It is not necessary to have a guarantor because retirement is enough as a form of credit protection
The sale of the fifth therefore represents the viable alternative to personal loans for civilian disabled who have been protested or bad payers, who cannot be disbursed under these conditions because financial companies and banks hardly grant the possibility of obtaining a new loan if they do not the installments of a previous loan are paid. Instead, with a pension paid by the INPS, the insolvency risk is reduced to zero, since the monthly repayment installment is withheld directly by the pension institution and paid to the credit company that provided the loan.
The question of the minimum poverty threshold
The disbursement of the fifth assignment, once it is established that the applicant has a fixed income on which to apply the transferable quota, would appear to have no contraindications whatsoever, but there is an aspect to be carefully evaluated, and it is the total amount of the pension: in fact the State has set a minimum threshold of survival for which it is not possible to apply the fifth assignment if, net of that 20 percent, a lower figure remains for the pensioner. In order to protect the dignity and standard of living of those who live on pension alone, the State establishes each year what this threshold should be, recalculated taking into account inflation, and is usually around 500 euros, with minimal fluctuations: in 2018 has been set at 507.46 euros, so if the calculation of the depreciation rate leaves a pension with a lower threshold lower than this amount, it means that the salary assignment cannot be applied.
To apply for a fifth assignment, a series of documents must be submitted, first of all the standard ones for financing, or:
- Identity card
- Tax code or health card
- Retirement slip
Since in the specific case civil invalidity comes into play, it is also necessary to carry out a self-certification in order to communicate the state of health on the forms of the insurance company to the official. Then there are cases, at the discretion of the lender or the insurance company, for which a medical examination report (RVM) is requested, which must be completed by your doctor, filling in a form that is generally provided by the bank to you want to apply for the loan based on the insurance parameters. On the basis of these data it is then up to the insurance company to decide whether or not to grant the life risk insurance coverage for the sale of the fifth, an aspect that is anything but secondary, given that according to the law the assignment of the fifth cannot be granted to pensioners without such coverage.
How to apply for funding
Once you have had the opportunity to verify that your state of health is compatible with the requirements of the credit institution and above all the insurance company, and that you can make an additional and transferable pension available, such as that of reversibility or old age, you can bring the documentation to the branch or online for the financial companies that make it possible (and they are always more), wait a few days at most for the outcome of the preliminary phase and see yourself being disbursed in financing.
Special forms of loan: an example
If you are a civil invalid and have been reported as a protestor or bad payer, at 90 percent your only chance of getting a loan is to apply for a loan with a fifth assignment. However, there are special cases of subsidized loans that in certain situations can help solve specific cases for those suffering from disabilities. By way of example, we offer BPER’s Loan without barriers, which aims to finance those who need special care or equipment such as voice recognition tools, sensors, special crutches, etc., up to 100% coverage. We propose a table taken from the official site BPER which summarizes the costs and financing conditions of the financial proposal:
|Financing example||Rates and interests||Additional costs and charges|
|Amount: € 10,000||TAN 2.20%||No preliminary investigation costs|
|Duration: 72 months||APR 2.56%||Sending periodic communications: € 0.90|
|Monthly installment: € 148.38||Interest to be returned: € 683.42||Installment payment: € 1.25|
The INPS benefits
Speaking of subsidized loans, we remind you that in the first instance INPS provides a series of credit opportunities aimed at allowing forms of support for all those who have a certified civil disability: obviously for those who need liquidity, it cannot represent a optimal solution as a salary assignment, however for those who have particular needs or would receive relief if helped by some particular service, the pension institution provides a series of benefits that allow free access or conditions of particular favor to be able to access certain ancillary services. For more information, we recommend contacting INPS directly.
I cannot access the fifth assignment: what to do?
If you do not have another transferable pension form available for financing, or it is not conspicuous enough to be able to support the sale of the fifth, let’s say immediately that the alternatives are almost non-existent, and you can only proceed by trial and error through the help of an expert consultant. Applying for personal loans such as civil invalids who have been protested or bad payers in the recent past is not a viable option for a finance company or credit institution, since the insolvency risk would be very high. The only real attempt that can be made is to go to the branch with a guarantor, perhaps a family member, or in any case a person who has an impeccable financial reputation and a balance sheet that allows him to replace the civil invalid applicant in the amortization of the installments of reimbursement if the subject in charge of the loan was not able to honor the stipulated contract. But this is an extreme attempt whose acceptance possibilities are quite low.
We are even less advised to recommend other marginal forms of financing such as bills, pledges, and other formulas that provide guarantees for movable or immovable property, which could only worsen the dignified living conditions of those who are already forced to a disability. Relying on skilled and prepared consultants can represent the only sensible suggestion we can provide to all those who cannot access the fifth assignment, so that on the basis of the single case we can find the most suitable and less uncomfortable alternative for those seeking a loan having civil disability and moreover with a past report of a bad payer.
As we have seen the opportunities to obtain credit for those who have a civil disability and has been reported as a protestor or a bad payer are not so many, in fact basically the only real solution that does not offer big problems in the request, having a pension parallel to that of disability, is the assignment of the fifth, which offers solid guarantees to the bank in turn, allows the applicant to obtain a sum quickly even with a part in advance, and does not give problems from the point of view of past reports of protests and various financial problems. Furthermore, having a direct withholding on the pension also represents a convenience as it does not require the holder of the loan to remember to pay the monthly repayment installment, a fortiori a meaningful speech if you suffer from more or less serious forms of disability. Unfortunately, there are not many alternatives, there are some credit institutions that offer special subsidized loans, and other specific dedicated services offered by INPS, but in general the sole transfer of the fifth is a real guarantee of success for those seeking loans to disabled civilians who have been protested or bad payers.