Transfer of the Fifth or payday loan: the constraints that limit the choice

Transfer of the Fifth and payday loan are two very popular credit instruments, but they have different ways of granting and collecting. Let’s see how they differ and all the situations in which the choice between one and the other becomes obligatory.

Fifth assignment and payday loan: the differences

personal loan: the differences

Both the assignment of the fifth and the payday loan are fixed rate loans but, aside from this analogy, the two forms of credit differ in many aspects. Let’s see them in order.


The assignment of the fifth can be requested by employees and retirees, the payday loan is also open to those who are precarious or temporary workers.

Age limit

The Employee loan has a higher registry limit (85 years), while the payday loan is not granted over 70-75 years of age.

Maximum limit

The Transfer of the Fifth can provide variable amounts, but still higher than the payday loan. In fact, with the Transfer of the Fifth, up to 75,000 dollars can be obtained, the payday loan limit is instead set at 30,000 dollars.

Collection method

Employee loan has a practical and safe repayment system: installments are automatically deducted from your salary or pension, avoiding the risk of falling behind with your payments. In the case of the loan, you can instead choose whether to charge the amount to the current account, or make a monthly payment.

Installments amount

The Employee loan ensures installments that are light and within our reach, never higher than one fifth of the salary or pension (20% of the net in the paycheck or pension). In the payday loan the amount changes instead on the basis of the sums disbursed and the duration of the loan, for this you must always check that you are signing sustainable agreements.

Customer solvency

Thanks to the guarantee offered by salary or pension, bad payers and protests can also request the Transfer of the Fifth. payday loans, on the other hand, require an investigation into the customer’s creditworthiness which can delay or hinder the granting of credit.

When is the choice mandatory?

money loan

From what we have just seen it is clear that not everyone can freely choose one or the other form of financing. In fact, payday loans are the only viable option when you cannot count on a stable employment contract or a pension.

For all the others the most convenient solution is the Transfer of the Fifth. In addition to offering a credit line even after the age of 75, this particular form of financing allows you to request up to 75,000 dollars and is open to protestors and bad payers. But that’s not all, thanks to simplified telematic practices, the loans with Employee loan are disbursed in a very short time and include insurance coverage to protect the applicant and his family.

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