The proxy loan, also called a payment delegation, is a non-finalized personal loan that repays with a constant installment and a fixed interest rate: the applicant is free to dispose of the amount paid and has no restrictions on the destination nor must he answer expenses made with that money.
It is a form of loan dedicated to jobs dependent on public and state bodies regulated by Article 1269 of the Civil Code: its peculiarity lies in the fact that it is the employer who arranges the repayment of the loan in favor of the bank or of the financial, withholding from the salary and paying monthly the installment of the loan.
The proxy loan is often accompanied by a loan with a salary of one fifth and allows for additional liquidity to be obtained through the transfer of another fifth of the salary, since the maximum amount of the loan must be less than or equal to 20 % of salary. In this case, this is a possible solution but to be carefully weighed: in fact, it must be assessed that the repayment installments will be equal to 40 or 50% of the salary.
Loan delegation, who can request it
The proxy loan is a type of funding that is fairly easy to obtain for state employees and public administration or for those who serve in the Armed Forces, provided they have completed a sufficient period of seniority. For private employees and those working in a small company, however, it is more difficult to obtain.
It is useless to say that it has a better chance of obtaining a proxy loan that has a good income and a substantial severance pay, set aside in the company or in a supplementary fund.
Even those who are reported as bad payers or protesters can request a proxy loan, but any granting of the loan will depend on a series of factors assessed on a case-by-case basis.
Loan authorization, the necessary documentation
To apply for a proxy loan it is necessary to present some documents, such as those that attest to the applicant’s working situation, the possible presence of other loans in progress and a permanent contract, since it is a loan aimed primarily at civil servants and state. You will also need a valid ID, your tax code or your health card and your last paycheck.
The characteristics of the proxy loan
Thanks to a proxy loan, up to € 90,000 of liquidity can be obtained, to be repaid through monthly installments that remain unchanged for the entire duration of the loan. The repayment plan can last for ten years but can be renewed before the deadline. As already mentioned, this is a non-finalized loan, so it can be used freely without having to justify or prove the expenses made. Generally, for this type of financing the presence of a guarantor is not required, but must be protected by two insurance policies: employment risk and life risk, the cost of which is included in the monthly repayment installments. In the event of loss of employment by the holder of the loan and if the accrued TFR is not sufficient to cover the amount, the insurance company intervenes by extinguishing it, even if the customer is not exempt from repaying the debt to the insurance company. In case of death, however, the insurance company reimburses the residual loan guaranteeing the heirs.
Loan delegation and transfer of the fifth: the differences
These two types of funding are actually quite similar to each other: in both cases, for example, it is the employer to deduct the amount to repay the loan from the salary of the applicant, thus reducing the risk of insolvency. There are, however, some differences: in the transfer of the fifth, to begin with, the monthly repayment installment can not exceed one fifth of the salary, while with the payment delegation, in some cases, up to 50% of the monthly income can be reached. also by combining the two forms of financing.
Finally, in the event that a loan with a transfer of the fifth is requested, the employer does not have the power to refuse the concession and is therefore obliged to withhold and pay the requested amount monthly to the credit institution. loan delegation acceptance or rejection is at the discretion of the employer.
Loan delegation and transfer of the fifth, how to add the two loans
Employees who have already obtained a loan with a sale of the fifth but need more liquidity can apply for a proxy loan and add the two loans, thus exceeding the limit of 20% of the salary for the repayment installment envisaged by the transfer of the fifth. In any case, the two installments can not exceed 50% of the net monthly salary. This solution could be suitable for a family in which both spouses work and in which, therefore, a salary can be devoted half to repay the two loans without incurring economic difficulties.
To access a proxy loan it is mandatory to stipulate an insurance policy that protects the bank or financial institution from the risk of insolvency due to the loss of employment or the premature death of the applicant. The payment of the policy is included in the monthly installments: in the calculation of the amount of the installments and therefore from the maximum transferable amount with respect to the salary, the amount to be paid for the insurance policy must also be considered. As it is easy to understand, this determines the maximum amount that can be obtained with the proxy loan.