Loan with accompanying allowance: is it possible and how can I get it?
Financing this type of social security treatment presents two sets of problems:
1) although they are indicated as loans with an accompanying pension, the legal nature of the accompanying allowance is far from a pension and, consequently, the holders are quite different than retirees. Already the noun “indemnity” differentiates it from the pension: the first is paid as aid, the second thanks to the contributions paid previously. It is clear that we are not giving an etymology lesson but we want to make it clear that the language used by the Italian legislator is not accidental: if they called it indemnity and not retirement there is a reason, which, as we will see, has relevance in case of transfer of the fifth.
2) the other problem of financing with accompanying pension is the amount of the monthly allowance: for 2020 it is 520.29 USD, therefore slightly above the minimum threshold (515 USD) established annually by Social Institute. This problem is further amplified if the accompanying allowance is the owner’s only form of income.
Loans with accompanying pension?
Okay for the “loan”, but not really for the “pension”! You will notice that, erroneously but on purpose, we have used the noun “pension”, knowing full well that such accompaniment is not. We did it to reconnect to point.
That is, to the nature of the allowance to tell you that, unfortunately, since it is not considered a pension but a social support mainly for disabled civilians, it does not benefit from the loan par excellence reserved for pensioners: we refer to the transfer of the fifth of the pension.
Here, ultimately, the negative side of a pension treatment emerges when it is not considered a pension. In fact, the accompanying allowance is one of those hypotheses (the others are described on the calculation of the transfer of the fifth) which cannot transfer the portion of the fifth and therefore if they need to finance themselves, they will have to turn to alternative forms of financing and which we will indicate below.
Loan with accompanying allowance: how to finance it?
A first alternative method but similar to the transfer, in the sense that it allows you to have liquidity, is the personal loan. However, it is not said that lenders grant it this way, without guarantees. This is particularly true for those who only hold the accompanying allowance: in the latter case, we can say that the presence of a guarantor is in fact mandatory. Another method is to give a real estate collateral, even owned by a family member, on which to take out a liquidity loan.
Another system, for which however they need at least a couple of requirements, is that of the lifetime mortgage loan. This can be done on the condition that the owner of the accompaniment is at least 60 years old and owns a house, but not any, but a residential property. More info, were interested, on mortgage annuity calculation. To learn about other financing systems, if you want, visit loans to retirees without age limits and without assignment of the fifth