When we are faced with considerable expenses, but important for our life (the renovation of a house, an unexpected event, for many even medical expenses or a wedding) the amount to be requested in the case of a loan cannot be small, and usually we focus on the figure of 20,000 USD.
Unfortunately, these loans are not currently easily obtainable if you present yourself to a bank or a financial company without valid guarantees, such as a paycheck, of the more than credible guarantors, of real estate possessions. Alternatively, one can think of loans with exchanges or a transfer of the fifth. Is the latter solution the one that suits you best? Let’s find out.
The different options on the market
We immediately highlight that those who do not have a fixed job but can at least count on a fixed-term contract can opt for some types of personal loans, where it can go up to 84 months for repayment in monthly installments with fixed TAN for the entire duration of the loan and variable APR according to the number of installments (see also Personal loans without paycheck).
Other speech is to be made for those who need this figure but do not have a paycheck or guarantors, or for those who have been protested in the past. They could find a solution in a loan changed, which notoriously does not require guarantees but has higher interest rates than normal loans (which can be decreased with presentation of motivation and guarantor) and, in the case of a loan from a private individual, as a counterpart for any foreclosure of their assets against non-payment.
The luckiest ones are those who work on permanent contracts, even better if they are state or public employees (who on average discount rates lower than those of the private sector), or retirees, as they can take advantage of the assignment of the fifth even if they have a bad pay background.
The advantages of the transfer of the fifth
The assignment of the fifth allows to obtain a loan of 20,000 USD even to those who already have an additional loan in place that has not yet finished paying. This loan allows to be paid monthly with deductions that reach up to a fifth (20%) of the monthly net salary, with rather convenient interest rates (with a fixed installment, fixed TAN for the entire duration of the loan and variable APR according to the number of installments).
The duration of a loan for assignment of the fifth part starts from 2 years (24 installments) and reaches 10 years (120 installments): therefore it allows to be paid easily, and in addition has the advantage of being insured. However, he has the limit (and in Italy these days is no small thing) to be able to be requested exclusively by retirees or by those who have a permanent contract job, in state and public bodies or, in certain cases, in private companies .