Social Institute recently formalized updates relating to the sale of the fifth threshold rates. This is a standard procedure following the data collected by the partner banks.
Specific information on this has been disclosed with Communication 5268. They will remain valid until March 31st.
Transfer of the fifth interest rate: here are the limits not to be exceeded
The technical guidelines regarding the sale of the fifth threshold rates are very clear. Until March 31, 2017, for loans up to $ 5,000, the maximum interest rate of 18.23% must be respected.
What is the limit value for numbers from $ 5,000 and up? In these cases the interest must remain within the usury threshold of 17.08%. In the first case the average rate is approximately 11.39%, while in the second it is 10.47%.
Transfer of the fifth through an affiliated finance company: the thresholds for pensioners
To learn more about the rules to be followed regarding the transfer of the fifth threshold rates, it is necessary to cite the case of loans requested through financial institutions affiliated with the Authority. At this juncture, for the transfer of the fifth of the pension, it is based on the amount requested and the age of the customer.
To give a concrete example, remember that the threshold rate for loans up to $ 5,000 granted to pensioners reaches 8.58%. If you look at the age group between 60 and 69, however, it reaches 10.18%.
The last case to consider is that of customers aged between 70 and 79 years. In this case, the threshold rates reach 12.78%. It is very important to specify that, when we speak of age, we mean what the pensioner has at the end of the repayment plan.
Transfer of the fifth of the pension: the threshold rates for loans over $ 5,000
We remain in the context of the transfer of the fifth of the pension granted by the financial companies and we talk about loans above $ 5,000.
In this case, the sale of the fifth threshold rate provides for a maximum APR of 8.36% for subjects up to 59 years of age. On the other hand, when dealing with customers between the ages of 60 and 69, the cap to be considered is 9.96%.
The next master class, on the other hand, is associated with an APR that never exceeds 12.56%.
News on the sale of the fifth: the protocol signed by Consumer Associations is operational
Talking about news on the sale of the fifth threshold rate is important, but it is also important not to forget the progressive operation of the protocol signed by Consumer Associations.
What is it about? Of a commitment, signed last fall, to promote good practices useful in avoiding excessive debt. The protocol in question provides for an increase in transparency and, in particular, new tools to allow users to monitor their economic situation before applying for loans.