The salary -backed loan is a form of non-finalized personal loan with a fixed rate and monthly installment intended for public and private employees .

This has characteristics that differentiate it from other types of personal loans, primarily the fact that it can only be requested by those who receive a salary ; it is therefore not a loan that a self-employed worker could access.

Salary-backed loan: a loan reserved for employees

There are various situations for which a person can consider using a loan ; for example, unforeseen events may have occurred which require a certain outlay of money such as damage to the home or the implementation of a project which requires the use of a certain sum.

Whatever the reason that drives you to request a loan, there are many forms of loans offered by credit institutions; among many, one specifically reserved for public and private employees is the salary transfer .

But for what reasons might an employee find it interesting to use this tool rather than others? Below is a brief analysis.

Why resort to this form of financing?

The salary transfer is a type of loan that is usually particularly interesting; it is in fact a loan at subsidized rates ; for example, in the case of public employees there are various agreements between credit institutions and the Public Administration.

Another reason that is worth underlining is that it is a loan whose installment cannot exceed one fifth of the net salary (20%); it is therefore a choice that makes the reimbursement more sustainable. Furthermore, 20% is the maximum limit , but it is also possible to opt for installments with a lower percentage weight. The repayment of the installment occurs through a withholding made by the employer who pays the amount directly to the creditor.

Since it is a fixed rate loan, the installment will never change for the entire duration of the loan, which allows for timely financial planning .

Another feature that deserves to be taken into consideration is that the salary-backed loan is an easily obtainable loan; this is because it is a loan in which the risk of insolvency is eliminated. This depends on the fact that some forms of protection are provided for by law; one is represented by a restriction on TFR , the severance pay which acts as a guarantee, while the others by the stipulation of two insurance policies : one for life risk, which protects against the debtor's death before maturity, and the other for the employment risk, which protects against job loss.

As regards the duration, for this type of loan the maximum is 10 years; this allows for a rather easy refund even in the case of considerable sums (the maximum amount granted is 75,000 euros).

Finally, since it is a non-finalized loan, the creditor is not required to specify the reason for requesting it; in fact, he will be able to use the money received as he sees fit.

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