Are you a pensioner with a disability pension? Are you wondering if you can get a loan through this pension? Now let’s go into the whole discussion, giving you a lot of useful information. Meanwhile, good news: a loan on the disability pension is granted without problems, just offer the necessary reimbursement guarantees.
There is no reason why a bank should not grant a loan to someone who is in a state of disability. However, you must always ask the institution for advice to clarify the pathology you are suffering from and check the economic reimbursement possibilities.
The disability pension can be used as a guarantee to request the loan, we say that the granting of the loan therefore will depend substantially on the will of the bank and on the assessments of the institution.
How loans for disabled pensioners work
In general, if you are disabled or not retired, it does not count. Banks always make the usual assessments when they have to decide whether to grant a loan or not.
The requirements necessary to obtain one generally concern:
- An immaculate credit history
- Do not exceed certain age limits for the applicant
Generally the age limit is around 75 maximum years for debt relief, while for the other aspect you need to be sure that you are not protested and that you have never been reported as a bad payer.
Finally, assess the amount of your disability pension. If you are affixed with the first two requirements we have mentioned, all you have to do is make sure that the sum you receive monthly is substantial enough to convince a bank to provide credit.
Unfortunately there are cases in which the invalidity condition could affect the request for the outgoing loan. Many lenders may be less inclined to grant credit if the chances of the applicant’s death being too high.
Types of loans granted to disabled pensioners
Disabled pensioners offer their pension as collateral for the loan. The bank will get the payment of the installments right on your pension that you receive monthly, so that the repayment is guaranteed.
What’s the problem? The condition for this to happen is that the withdrawal made by the bank does not affect the quality of life of the applicant. So the amount of the monthly installment must be calibrated to achieve this goal.
Cession of the fifth for disabled pensioners
Among the most common types of loans for disabled pensioners there is the assignment of the fifth. This is the kind of loan that is perhaps the easiest to obtain because the installment will hardly be such as to prevent the person who will have to support it, to live in a peaceful manner.
The reimbursement of the fifth assignment takes place by direct withdrawal from one’s disability pension. The installment with the assignment of the fifth can never exceed 20% of the total amount that is perceived as a pension.
As anticipated, however, even the assignment of the fifth is a formula that requires the assessment of the type of disability and the risk of death of the applicant.
As required by law, the loan is protected by an insurance policy, which is added as a cost in the installment. The insurance covers precisely the risk of death, but the bank is not willing to grant the credit if the risk is too high.
Apply for a loan
Let’s say you have all the requisites necessary for the loan request, how you need to proceed, which documents are necessary?
In the moment in which the official request is made, it is essential to present the documents attesting the monthly entry and personal data. The bank then, in order to understand what kind of disability we are talking about, requires the medical documents that attest to the type of problem and disability, so it will be able to calculate the risks related to the loan.
The physiological condition of the applicant is often evaluated also by a commission relating to insurance on loans for salary loans, which as mentioned are mandatory by law in this type of loan.
Cases in which the bank refuses the loan
The granting of the loan on disability pensions is not always easy to access. The risk of death and of not being able to repay the sum for some medical reason are too high.
The bank runs the risk that it cannot be redeemed on disability pensions in the event of insolvency. Here is a list of cases where there is little or no chance of receiving funding in a handy list:
- In case of too serious diseases
- In the event of a high probability of death
- Disability pension too low
- High risk of loss of the invalidity pension by the applicant