Retired loans with a minimum pension? Complete guide to these loans that are not accessible to everyone because the law assumes that every person must have every month, to be able to spend on shopping, bills and everything else, an amount equal to at least the minimum pension, which therefore cannot be used to finance a personal loan. This amount is called a sort of minimum survival amount.
Not all retirees can get funding with their pension, let’s see in this complete guide updated to 2020 what can be done.
What are the minimum pensions?
The minimum pension is the minimum economic treatment required by law, which all pensioners must have in order to live, month by month. For 2020 the minimum pension amount is $ 513.01 per month. This amount is the minimum amount considered to be able to live for all pensioners.
It follows that this amount cannot be affected in any way by the repayment of the installments of a personal loan, even if obtained with the assignment of the fifth. Consequently, a loan can only be requested by retirees who can boast a monthly fee in excess of the minimum.
Example of personal loan, because the minimum pension is needed
Let’s take a concrete example of how the minimum pension for personal loans works, in order to better understand the concept.
- Net monthly pension: $ 1,000
- Maximum transferable amount: $ 200 (1/5 of the net pension). It is also the maximum monthly payment that can be paid.
- Residual pension after the payment of the installment: 800 $
This value is higher than the minimum pension, so you can proceed without problems with the fifth assignment.
Here is another example.
- Net monthly pension: $ 600
- Theoretically transferable amount: $ 120 (1/5 of the net pension)
- Residual pension after the payment of the installment: 480 $
This amount ($ 480) is lower than the minimum pension foreseen by law for 2020, therefore the monthly installment is “adjusted” so that the difference between the minimum and the residual is never less than the minimum.
For this reason, the maximum monthly installment that can be paid becomes $ 600 (net) – $ 513.01 (minimum pension) = $ 86.99 (installment that can be paid, at most, in the reimbursement of the transfer of the fifth).
Conclusions and alternative solutions
As we have seen, the pension defined as “legal minimum” has an important influence on the calculation of a loan and on the repayment procedure.
We understand that Italian law considers the minimum legal pension to be “sacred” and “untouchable”, which therefore can never be affected by any financing or reimbursement.
So, to conclude, loans to pensioners who have the minimum pension are obtainable, but along other paths, such as lifetime loans, which are based on the possession of a property that is given as collateral.