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How to Apply for and Obtain a Loan if you are Complained or Bad Payers

How to apply for and get a loan if you are complained or bad payers? The need to have liquidity in a more or less urgent manner clashes with the prudence of financial companies and credit institutions in providing money to those who have had reports of having issued debt securities subsequently protested, or of not having paid the installments of a previous loan. This means that loans for protesters and bad payers require rather strong guarantees so that the banks or the financial companies grant the capital, at least until they are reported to be in the archives such as the end-to-end knowledge company or the Register of Protests, where known negative information emerges on applicants, preventing normal access to credit. However, the financing solutions are not lacking, and in this essential guide we will see what can be achieved by asking for loans for bad payers and protested.

The fifth assignment for public employees and retirees

The simplest way to see loans given to protesters and bad payers is to offer as a guarantee a certain and demonstrable income, expressed by the pay slip for employees with permanent contracts, and the pension check for pensioners: thanks to this guarantee it is possible to obtain the assignment of the fifth of the salary or pension. The fact that a fifth assignment can be granted to protesters and bad payers, while a classic personal loan does not, derives from the direct withholding of up to one fifth of the revenue received each month, which is paid directly by the employer or pension institution to the financial company, which thus has the guarantee of depreciation. In addition there is the presence of an insurance policy that can intervene in the event of events that may affect repayment, such as early death.

The sale of the fifth is therefore the most sustainable form of loan to protesters and bad payers, but it is reserved only to a specific category of subjects, or those who have paycheck or pension slip to offer as a guarantee of income.

The characteristics of the sale of the fifth

In this diagram we summarize the characteristics of the fifth sale, the advantages and peculiarities of this type of financing, which are:

  • Direct withholding of the repayment installment of up to 20 per cent of salary or pension
  • Duration of the amortization plans between 24 and 120 months
  • Fixed interest rate
  • No guarantor required
  • No proof of expenditure
  • Possibility to request a capital advance
  • Possibility of disbursement also with other loans in progress
  • Provision also for protesters and bad payers
  • Possibility to have an advance on the total sum
  • Compulsory insurance for pensioners, but depending on the institution it could also be for workers reported in the registers, where it is normally optional

How to request a fifth assignment

To apply for a loan by means of a fifth assignment, the requisites already described above must be met (for pensioners, a certain age limit must not be exceeded, depending on the chosen budget), and a series of documents must be presented to start the preliminary phase, namely:

  • Copy of a valid identity document
  • Tax code or health card
  • The last or the last two copies of the income document (pay slip for employees, pension slip or credit of the pension in c / c for pensioners)
  • Single Certification (former CUD) for employees

After presenting the documents, a phase that can take place directly in the branch or even online depending on the possibilities offered by the individual credit institution, the sum of money following the stipulation of the contract can also be paid out within 48 hours. It will be the responsibility of the bank or financial institution to inform the employer or pension institution of the transfer that will result in the direct withholding of emoluments received each month by the holder of the loan.

Debt consolidation with the sale of the fifth

Debt consolidation with the sale of the fifth

There is another funding opportunity for employees and retired bad payers, or debt consolidation, to be always requested by salary or pension assignment. What is it? This is a particular type of financing in which the applicant can combine all the previous loans in a single installment, a lighter and more sustainable installment which expands the amortization period, and with the possibility of requesting additional additional liquidity.

If it is true that on average the interest rate is higher than a normal loan, to be attractive and convenient it must still be lower than the sum of the previous loans, in any case the advice is to evaluate the various estimates to understand where you can save money. more. We remind you that not all financial companies could agree to provide a debt consolidation to protesters and bad payers, but the guarantee of the pay slip or pension could allow the go-ahead for the loan, opting for the salary assignment as a method of repayment.

How to apply for loans for self-employed bad payers

The situation is obviously more complicated for the self-employed and the protested freelancers and bad payers who want to get a loan despite the report to the end-to-end knowledge company or to the Register of Protests. Not being able to count on the guarantee of the pay slip or social security check, it is not possible to obtain the fifth assignment, but a credit institution could evaluate a loan in the following ways:

  • Loan with guarantor
  • Mortgage loan on the house
  • Loan with pledged assets
  • Loan with alternative annuities
  • Loan with bills of exchange

Let’s see in detail how these alternative financing methods work and what they involve, in which the self-employed worker is required to strengthen guarantees to get around the obstacle of reporting as a bad payer.

Loan with guarantor

Loan with guarantor

The relatively simplest way to request from a self-employed worker a loan to bad payers and protesters is to present themselves to a credit institution or a finance company with a guarantor for a surety: the guarantor in fact is a third co-obligated figure who is able to replacing the principal holder of the loan in the payment of the amortization installments in the event of a shortfall, and should be a sufficient guarantee for those who provide the money, under certain conditions. In fact, assuming that the bank or financial company agrees to finance a loan with guarantor, the necessary condition is that this third figure demonstrates a solid balance sheet through a certain and demonstrable income, so that it is able to make the amortization of the loan sustainable in case of replacement of the holder of the loan in the event of failure to pay the installments, but is not the only one an indispensable requirement: in fact, the guarantor’s creditworthiness is equally decisive, if not even more so, so there must be no protests and notifications of any kind. If, in turn, the guarantor has received reports as a bad payer, it will be impossible to grant the go-ahead for financing, and the fact that they are not in the archives at all, or if the guarantor has never requested a loan before without being spent certificate cannot in fact assess the subject’s reliability.

How to apply for a mortgage loan on the property

How to apply for a mortgage loan on the property

In the absence of a third figure as guarantor, attempts can be made to request starting from the guarantee of real assets, as can be made available to a real estate owned through a mortgage: the mortgage on the house is a real right guarantee that does not entail the loss of possession of the asset by the owner, but is advised by the experts only for large loans. Indeed some banks or financial institutions do not accept this form of guarantee especially for small amounts, since in this context the value of the loan would be far lower than that of the mortgaged property, making redemption of the capital paid in case of failure to pay any installment.

Ask for a loan with pledged assets

Ask for a loan with pledged assets

Another way to try to get a sum of money by pledging real assets, is the possibility of requesting credit against a pledge of property assets such as jewelery, for example. The method of financing is very simple: once it is verified that a financial date accepts the loan with a pledge, an appraisal of the asset is carried out to establish its value, and once the amount is fixed, it is disbursed in the form of money to the applicant: the debtor returns to possess the asset at the end of the amortization, paying the classic installments every month, but in the case in who is not able to redeem the asset, the financial company is entitled to auction the asset, in order to regain the capital provided.

Make alternatives to guarantee the loan

Make alternatives to guarantee the loan

In the absence of tangible assets or properties to be subjected to a guarantee, another attempt that can be made by self-protesters to obtain a loan is to offer alternative annuities, such as a tied-up capital that guarantees a certain annual interest, or a regularly registered rent of a property, to request a small amount of capital from a financial company or credit institution. In any case, the credit institution claims that the applicant demonstrates during the preliminary investigation that he can continue to be the holder of the annuity in question for the entire repayment period agreed with the financial company, otherwise it will not be possible to disburse the loan.

Loan changed

Loan changed

For those who are with their backs to the wall, short of viable financial alternatives, the extreme attempt that can be made thanks to the financial institutions that supply them is a loan request with bills, where bills of exchange are issued instead of the repayment installments executive debt instruments that must be signed by the debtor and on which a stamp must be affixed, and which serve to honor the amortization of the debt. Unlike the installments of a normal loan, in the event of non-payment of even a single bill, the creditor is allowed to foreclose the debtor’s assets for an amount equal to what was agreed without the need for a conviction or an injunction to pay..

The loan has very high interest rates, but is usually paid also to protesters and bad payers: another fundamental difference with respect to the classic amortization rate is that it is possible to postpone the repayment date affixed to the bill, subject to an agreement between the debtor and creditor.

Sector financing

Sector financing

Among self-employed workers there are various categories ranging from entrepreneurs to artisans to merchants, and in case of difficulty in accessing credit because they are protested or reported as bad payers, we suggest that you seek information from trade associations or agencies local to see if there are opportunities for sector funding, such as the Artigiancassa credit institution for artisans or the microcredit agency for merchants. It is worthwhile to make an attempt to perhaps succeed in obtaining a small loan and to face expenses related to one’s own work activity.

Small credit opportunities

There are several financial companies and credit institutions that offer small loan opportunities among their financial products, which, as can be clearly seen from the name, represent modest loans, which in many cases take the form of a real line of credit can be activated with the ownership of a current account, or in the form of a rechargeable card. Let’s talk about light amounts generally between a minimum of 500 euros and a maximum of 5,000 euros, which are repaid in sustainable installments of 50, 100 euros a month, and with very short repayment plans.

Are small loan forms possible for protesters and bad payers ? There is no single answer in this sense, and it is necessary to go and ask the bank or financial institution where you intend to request, or rely on an expert consultant who can suggest the feasibility of such an operation. What we can say is that certainly the levels of insolvency risk are lowered considerably compared to a normal loan, so that more openings to get the go-ahead for financing are concrete for those who, as freelancers and self-employed workers reported in the registers urgently seek liquidity for solve small problems. The financial companies can in fact amortize more the risks of insolvency to these figures, but in any case it is necessary to get information from the single institution to understand how many chances there are for obtaining a small loan.


Loan for terrace construction – with desired rate & low interest rate

If you want to expand your terrace, you usually can not afford this from financial reserves. A loan for terraced construction is being considered. Who owns a property and would like to grow a terrace on the come to considerable costs. Costs that can only be paid with a loan for terrace construction.

It is possible to apply for a modernization loan or an installment loan.

The construction of a terrace home

The construction of a terrace home

Credit for terrace construction – unbureaucratic – without land register

Finally you have moved into your dream house and you are satisfied, but it lacks a terrace. A terrace that can be entered directly from the living room or from the kitchen. There are several possibilities for this. The terrace can be built of stone or wood, with or without a substructure.

It should be so much space that at least an outdoor dining table and chairs find space. Several chairs and planters should come to a halt. You can roof a terrace, but it is also without a roof. There is no need to obtain permission from the Building Department if the terrace is not higher than 1 m.

Only 1 m above the plot height requires a registration at the building office. If you are not sure whether your terrace construction has to be registered, you should consult the building office.

Modernization loan – credit for terraced construction

Modernization loan - credit for terraced construction

With a modernization loan one should note that this shows special features. Thus, the credit for the terrace construction is earmarked, which means that it may only be used for this particular purpose.

The intended use is recorded in the loan agreement. Although the work in question is explained at the bank meeting, it is not part of the credit agreement.

If the loan amount is used for the construction of the terrace, the customer can freely dispose of the credit limit. However, the earmarking of the loan for the terrace construction also has positive aspects. The interest rate for the loan for terraced construction is far below that of the installment loan. However, the modernization loan will only be given to real estate owners.

A tenant would in any case not be authorized, without the owner’s consent, to make structural changes to the property. Therefore a tenant will not receive this loan.

Is own capital important for the credit for terraced construction?

Is own capital important for the credit for terraced construction?

When a higher loan amount is requested, some banks require the borrower to provide equity. So a certain sum of the estimated costs should be paid out of pocket. The rest can then be financed with a loan for terrace construction. Equity of about 20 to 30% is required.

If the terrace construction costs 25,000 euros, it should have a share of about 5,000 to 7,500 euros. Further protection is usually not required by the bank. However, it may be that with a higher loan amount an entry in the land register should be made. Such a land registry can prove beneficial for the borrower. He then receives a favorable interest rate. This should be a reason to think about proposing to the bank a voluntary entry in the land register, even if it incurs additional costs.

Pros and cons – credit for terraced construction

Pros and cons - credit for terraced construction

Anyone who applies for a modernization loan can benefit from a favorable interest rate, and that is where earmarking comes into play. Also, the duration can be chosen variable.

An entry in the land register creates an additional hedge, which lowers the interest rate. As a disadvantage can be considered that the credit can not be used freely, because there is a purpose limitation. If the bank demands equity, the liquidity is reduced. Also, registration in the land register incurs additional costs.

Calculation, application, disbursement – credit for the terraced construction

Calculation, application, disbursement - credit for the terraced construction

Anyone applying for a modernization loan should keep a close eye on the costs. This is important to determine the need for capital, on the other hand, banks without restructuring plan will not give credit.

Similarly, a credit comparison should be made with a loan calculator. This allows the borrower to look for a cheap lender. In the comparison simply the loan amount and the desired term is entered. As purpose of use “modernization” should be registered.

Immediately, the borrower will see a list of providers, with the best leading the list. With a modernization loan, banks provide loan sums of 10,000 to 50,000 euros. The term varies from 12 to 120 months.

Interest loan for terrace construction

Interest loan for terrace construction

Borrowers should make sure that the loan installments are set to fit the monthly budget. It should then be searched for a suitable term an affordable credit.

An extended term, however, raises the interest rate. Interest rates can vary widely.

Customers often have to reckon with an interest rate of about 2.75% to 10.99%. The borrower should be aware that an extension of the term also increases the interest rate on the loan for terrace construction.

Equally important is that since 2014 banks may no longer charge a processing fee. Basically, banks stick to it, but the customer should check that. When a credit comparison is made, not only the interest rate should be the focus, but also other factors such as special repayments.

Credit terms – credit for terraced construction

Credit terms - credit for terraced construction

Just as with all other loans, care should also be taken in the modernization loan to ensure that special repayments are included in the credit agreement. Special repayments are additional payments to the loan amount within one year.

Especially the employee who receives special payments during the year, should pay attention, if he wants to pay these sums on his credit. If a loan is to be redeemed before its expiration, the bank can charge a prepayment penalty.

If special repayments are allowed, this compensation is waived. Banks allow about 10% of the loan amount as a special payment annually. Thus, a loan for terraced construction paid faster, without any disadvantages to the customer.

Credit for terrace construction – alternative to the modernization loan?

Credit for terrace construction - alternative to the modernization loan?

A modernization loan covers all aspects of a client who wants to keep his property in order. Nevertheless, it may be useful to look for a different form of credit.

Especially when the loan amount is not too high. Thus, borrowers are well advised with a installment loan without earmarking.

Although the interest rate is slightly higher, but the credit can be used freely. Again, can be searched for a suitable provider with a credit comparison.