Are you a foreign worker residing in Italy and need a loan? Then this article is right for you. We explain what are the necessary requirements to be able to apply for a loan for foreigners and what are the types that can be requested.
Requirements for applying for loans for foreigners
In order to apply for a loan for foreigners it is essential to have these two requirements:
- Being of age
- Being resident in Italy
- If a EU citizen you must have a certificate of residence in Italy
- If you are a non-EU citizen you must have a regular residence permit
- Having an employment contract
Some lenders, to grant loans for foreigners, sometimes require an open-ended employment contract and work for at least six months from the time of hiring. As we will see, this requirement is not necessary for all types of financing. Moreover, in the case of a fixed-term contract, it is possible to request a small loan with the end of the amortization plan within the expiry of the contract.
Types of loans for foreigners
The types of loans for foreigners are mainly three:
- The assignment of the fifth of the salary
- The loan with delegation
- The personal loan
Transfer of the fifth for foreigners
The assignment of the fifth of the salary for foreigners is the best financial solution. It can be requested by foreign workers from the public, state and private sectors. Unlike the personal loan, it allows you to have numerous concessions , among which:
- Fixed subsidized rates,
- The installment is deducted from the monthly paycheck,
- No risk of protests or late payments,
- There is no need to present guarantees,
- It can also be requested by protesters and bad payers,
- The monthly payment cannot exceed one fifth of the net salary amount and is therefore sustainable.
The assignment of the fifth for foreigners can also be requested with a fixed-term contract and by new recruits.
Loan with delegation for foreigners
The loan with delegation for foreigners , also known as double of the fifth, is dedicated to all foreign citizens who have an assignment of one fifth of their salary in progress. Thanks to the loan with delegation it is possible to request an additional fifth of the salary. The requirements and advantages are the same as for the assignment of the fifth.
Personal loan for foreigners
The personal loan for foreigners in practice is the classic financing. To be able to apply for it at times it is not enough to demonstrate only the income from work because, if the income is considered low by the lenders, they could require additional guarantees such as a guarantor or a mortgage . Before lending , lenders always evaluate several parameters .
What are the differences between assignment of the fifth and personal loan?
The loan for foreigners often has higher rates than the transfer of the fifth and, if you forget to pay an installment or delay payment, you risk being reported to the databases as a bad payer. Also, if you have been reported as a bad payer or protested in the past, you cannot apply for a personal loan.