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Backed loan of one-fifth of the pension

The service allows banks/financial intermediaries participating in the Agreement to notify the plan for a backed loan of one fifth of the pension relating to the contract signed by the pensioner, repayable through automatic monthly deductions from the pension. The service also allows citizens to consult the list of banks and financial intermediaries participating in the Agreement and the documentation relating to the product named “backed loan of one fifth of the pension”.
Addressed to:
Categories
Pensioners- Banks and financial intermediaries
Fund of membership
-
Age
-

Publication: 11 September 2026

What is it?

It is a loan the pensioner can obtain from:

  • a bank;
  • a financial intermediary. 

The loan may be repaid through an automatic monthly deduction from the pension made by INPS, up to the limit of one fifth of the pension eligible for the backed loan.

Who is it aimed at?

It is intended for holders of all pensions, except:

  • social allowances and pensions;
  • civilian invalidity;
  • monthly allowances for assistance to pensioners for incapacity;
  • income support allowances (VOCRED, VOCOOP, VOESO, CRED27, COOP28);
  • family allowances;
  • benefits of financial coverage until retirement pursuant to art. 4, paragraphs 1-7 ter, Italian Law no. 92 of 28 June 2012;
  • social APE advance payment.

How does it work?

To obtain the loan, the pensioner must claim a communication of transferable pension share, a document stating the maximum amount of the loan instalment, which is issued as follows:

  • by visiting an INPS office in person;
  • through a bank/financial intermediary participating in the Agreement.

This document must be submitted to the bank/financial company with which the loan agreement is entered into and, if it is participating in the Agreement with the Institute, it will forward it online directly to INPS.

The rate applied to the loan must not be higher than the wear threshold rate, for accredited financial intermediaries, or the conventional rate established, according to their age group, for loans disbursed by the affiliated financial intermediaries.

The duration of the loan agreement may not exceed ten years and insurance coverage for the risk of early death of the benefit holder is mandatory.

The transferable amount is calculated:

  • net of tax and social security deductions;
  • by taking into account the minimum pension amount established annually by the Compulsory General Insurance law (AGO);
  • on the total amount of pensions received, where they are paid by the same pension scheme.

Pension benefits supplemented up to the minimum level cannot be transferred.


FINANCIAL INSTITUTIONS' OBLIGATIONS

Before entering into backed loan contracts, they must request accreditation from INPS (INPS circular no. 91 of 31 May 2007):

  • banks and financial companies in possession of the legal requirements;
  • securitisation companies that acquire receivables arising from backed loans of one fifth of the pension that are already being repaid through amortisation from pensions.

Accredited banks and financial companies may also adhere to the Agreement with INPS (art. 8, ministerial decree no. 313 of 27 December 2006) for:

  • the protection of pensioners;
  • to contain the level of interest rates and ensure more favourable rates than market rates.

PENSIONER PROTECTION

Before establishing the amortisation plan on the pension, based on the duration and instalment amount agreed in the contract, INPS will verify that certain conditions are met to protect the pensioner:

  • the bank or financial company must meet all the requirements laid down by law;
  • the interest rate applied to the loan must not exceed the anti-usury threshold rate for accredited financial intermediaries or the agreed rate, based on age bracket, for loans granted by financial intermediaries participating in the Agreement;
  • the instalment specified in the contract must not exceed one fifth of the pension amount eligible for the backed loan;
  • all expenses must be indicated in the contract:
    • preliminary investigation;
    • early extinction of debt;
    • insurance premium for early death;
    • commissions;
    • interest.

Processing times of the measure

The ordinary deadline for issuing a measure is set at 30 days under Law no. 241/1990. In some cases the law may set different deadlines.

The table (in Italian) shows the deadlines exceeding thirty days, set by the Institute with a Regulation.

In addition to the terms for the issuance of the measure, the table (in Italian) also indicates the relative manager.