Loans to foreign citizens 2017
In a multicultural society like ours, there are more and more requests for loans made by foreign citizens. This condition has led more and more banks and financial companies to widen the audience of the beneficiaries of the loans granted. So let’s see how payday loans for foreigners work.
Can foreigners get a payday loan? And what are the methods envisaged? Questions that many citizens with non-Italian nationality ask themselves, but live in our country, and need to get money. So let’s try to clarify a little bit about this.
We must first of all remember that for foreigners we mean non-EU citizens or people who for any reason do not have Italian citizenship. Foreign citizens can benefit from a payday loan equivalent to that of Italian citizens.
But what are the requirements for payday loans for foreigners? The requirements for a foreigner are the same as those required by a common Italian citizen. A valid document is needed that can attest to the identity of the foreigner, usually the passport in addition to the tax code.
We then have the documentation that certifies the income, both in the event of dependent work, both autonomous and precarious. This is a necessary element to ensure protection for the payment of the loan to the issuing company.
The last relevant aspect for having a payday loan for foreigners is that of possessing a valid residence permit. This residence permit is essential, regardless of the possession of the other requisites required. From the point of view of Italian legislation, a foreigner without a residence permit is an illegal immigrant and therefore cannot benefit from any loan.
In the absence of this document, therefore, there are a series of serious consequences. It is not only a crime, but also affects the hiring of the foreigner who is therefore forced to work illegally. Condition that therefore makes it impossible to prove one’s income, not to mention the waiver of those rights that protect the worker.
How payday loan works
Now that we have seen what the general requirements set by lenders for granting payday loans for foreigners are, let’s see what are the most common forms of financing. When it comes to payday loans for foreigners it is necessary to consider the conditions set for traditional payday loans.
Products that are accessible to both workers and retirees and, in some cases, even to the unemployed and housewives. Access to credit is subject to the presentation of guarantees, which can be profitable or real. In the latter case, we speak of real rights over the property owned by the applicant, such as mortgage or lien rights.
The amount that can be financed varies according to the income received by the applicant. The amortization plan extends for a maximum of 120 months (10 years). The installments have a constant amount and the interest rate is fixed. The installments can be paid either by direct debit from the account or through the payment of postal slips.
But who makes payday loans for foreigners? To date, practically all credit institutions grant loans to those with an income, regardless of nationality. Those who are looking for a loan can therefore choose from many offers. They range from loans from online institutions, such as Astro Finance, to large banks such as Unicredit and BNL.
Employees and retirees can also choose to resort to payday loans for foreigners on assignment of the fifth. A particular form of payday loan that provides for the presence of a fixed income to be attacked. But how does it work? Let’s see in detail what it is.
The assignment of the fifth is a form of payday loan that banks and financial companies often tend to prefer. It is in fact a product that provides for the reduction of the monthly installment directly at the source. Unlike what happens for traditional payday loans, therefore, the payment of the monthly payments does not take place by the beneficiary.
This operation is in fact entrusted to the applicant’s employer, or to the reference social security institution if retired. These are the subjects called to reduce the monthly installment from the income of the loan beneficiary, by paying the amount due to the bank that granted the loan.
Characteristic, the one just illustrated, which makes the loans on sale of the fifth product particularly advantageous for the credit institutes. In fact, the repayment mechanism almost completely reduces the risk of insolvency. As long as there is an income from which to draw, the employer is responsible for paying the periodic installments.
Not only. In order to protect the funding body, the severance pay or pension still due is also foreseen. It is here that in case of non-payment the bank will go to recover the sums still due. Including the signing of a mandatory insurance policy. Coverage that must intervene both in case of death of the beneficiary and in case of loss of job.
How much do you get? As we have seen in the previous lines, the disbursable amount of a loan that can be financed is defined on the basis of the beneficiary’s income. As regards the monthly installment, as can be seen from the name, the loans on assignment of the fifth provide for a maximum installment equal to one fifth of the monthly salary or pension. The rate is fixed and insurance costs are deducted at source.
Loans with delegation
Those who already have a loan on loan for the fifth but are in need of new credit can opt for loans with delegated payment. Also known as a double fifth, the proxy loan allows you to assign an additional fifth of your salary.
In other words, the general rules of financing are the same as for the assignment of the fifth but it is possible to grant a second share of salary. Another difference to be underlined is the fact that the proxy loan is not accessible to pensioners. Only employees can obtain credit.
Those who are reported as bad payers also have access to loans on assignment of the fifth and double fifth. This is because given the characteristics of the loans, banks and financial companies are still protected even in the event of insolvency. Reason why credit institutions do not care about the credit history of the worker requesting the assignment of the fifth or the delegated loan.
We also recall that loans on assignment of the fifth can also be granted in the presence of other loans. Similarly, delegation loans can be coupled with an already existing transfer of the fifth. If the applicant needs very high sums, it is also possible to access a proxy loan at the same time as the transfer of the fifth.