When a new loan is needed to meet all the foreseen and unexpected expenses, the loan is delegated. Also known as double fifth, the loan with delegation, regulated by article 1269 of the civil code, is called this way because it can support the assignment of the fifth. The repayment installments account for another fifth of the salary. So let’s see what it is: how it works and who can request it.
Who can request it
They can request a loan by proxy or double-fifth:
- All state employees;
- Most public employees;
- Private employees with a permanent contract.
This is a complementary form of loan in the case in which there is already a contract of assignment of the fifth. The loan with proxy allows you to obtain additional financing while maintaining all the convenience of the deduction on your salary. However, always check that your institution or employer accepts this type of loan. Other basic requirements are seniority in service and possession of a good severance pay.
How does it work
The proxy loan is a type of personal loan not finalized at a fixed rate and constant rate. The applicant is not subject to any destination restrictions and may use the sum received at his discretion. In fact, the sum of the most delegated transfer must fall within 40% of the salary. It is also possible to pay off the loan by proxy early, with the recovery of the interest not accrued.
In the event that the holder of the current proxy loan decides to resign, at that point the paying agency will reserve the right to retain the accrued severance pay, and then proceed to reformulate the amortization conditions of the residual debt.
Another possibility available to the person requesting the loan by proxy is to withdraw from the loan agreement. The customer can exercise his right within 15 days from the stipulation, communicating his decision to the provider. There are no particular restrictions except the repayment of the loan, if it had already been activated, and the repayment of the substitute tax.