Printed from http://www.researchandmarkets.com/reports/2139765
Salary Loans in Italy
A "salary loan of one-fifth" is financial product issued by banks and specialised companies. A segment of the consumer credit market, salary loans of one-fifth are classified as personal loans for unspecified purposes, i.e., they are not issued for the purchase of a specific good or service.?
This type of loan enables employees and pensioners with a fixed monthly income/pension to obtain a loan that is repaid as a direct deduction from that income/pension over a maximum period of 120 months. The deduction is legally capped at one-fifth of the individual's monthly income (hence the name "salary loan of one-fifth). In the event the employment contract is terminated, the repayment guarantee is extended to the severance indemnity pay (TFR) accrued by the borrower.
The loan is covered by special insurance policies in the case of death or termination of the employment relationship and by INPDAP for public-sector employees. The ownership of the loan is not transferred to the lender and insurance cover, although widely used, is not a legal requirement.?
Salary loans of one-fifth carry a fixed interest rate called TAN (nominal annual interest rate or "base rate"), TAEG (effective annual percentage rate or "APR/EAR") and TEG (total effective percentage rate of charge), whereby the latter incorporates the insurance costs and an amortised repayment plan based on the French model: fixed rates (of an amount no higher than one-fifth of the individual's monthly income) composed of a decreasing portion of interest rate payments and an increasing portion of the principal repayment. That method enables the banks or finance companies to protect themselves because the highest amount of the loan interest payable by the borrower is incorporated into the initial instalments.
Until 2004 salary loans of one-fifth were governed by Decree of the President of the Republic (DPR) 180 of 5 January 1950 and implemented with regulation DPR 895 of 28 July 1950, which restricted the granting of salary loans of one-fifth solely to state employees (ministerial staff and the armed forces) and quasi-state employees (local authorities and public-owned companies). The amendments introduced by Law 80 of 14 May 2005 and Law 31 of 30 December 2004 (Finance Bill 2005) broadened the beneficiary categories of salary loans of one-fifth and the types of guarantee required from public-sector employees.
The key changes introduced by Law 80 of 14 May 2005:
- extend this type of loan to pensioners, contract workers and temporary workers;
- abolish the restriction that limited repayment plans to solely 5 or 10 years;
- abrogated the impossibility for state employees to use guarantees other than that provided by the INPDAP guarantee, invalidating any other type of guarantee, including insurance.
Nevertheless, it is common practice to redirect the payment delegation into the same regulatory limits applicable to salary loans of one-fifth, making it very similar.
The scope of the salary loans of one-fifth market is defined also by a number of regulatory requirements:
- the loan can be obtained by a sole signatory (joint ownership laws where applicable);?
- the main requirement is permanent employment;?there is no need to specify the purpose of the loan;
- there is no need to provide guarantees of surety (non-secured loan);?
- the loan can be issued also when the person is the subject of a payment default action or has other loans outstanding;?
- the loan repayment is maintained directly by the employer;?
- the amount must be a minimum of Euro 3000 and a maximum of Euro 50,000;
- the obligation is calculated on the entire portion of the severance indemnity pay (TFR) accrued;
- the repayment instalments and the interest rate are fixed for the entire duration of the loan;
- there is a legal requirement for the loan to be 100% protected by life and employment risk insurance policies;?
- the borrower is legally entitled to the early settlement of the loan subject to a penalty;?
- the loan contract must have a duration of no less than 24 months and no greater than 120 months.
The salary loans of one-fifth market includes another form of guaranteed loan known as payment delegation (or delegated loan), which is granted in similar conditions and in some cases can be linked with existing loans, raising the individual's overall credit rating. From the technical standpoint, the difference between a delegated loan and a salary loan of one-fifth is that the employee can delegate their employer to withhold up to two-fifths of their salary from their monthly pay packet. A delegated loan can be used to integrate, extinguish or rollover other existing loans and, further, can be teamed with a salary loan of one-fifth. The sole limitation is that the sum of the loan repayments must not exceed 50% of the employee's average salary.
A delegated loan differs from a salary loan of one-fifth as described below:?
- insurance cover is not a legal requirement for delegated loans but is widespread practice;
- payment delegation becomes effective solely when the employer confirms his/her acceptance through the issuance of a special document of consent, which makes the mandate irrevocable;?
- the ownership of the loan granted to the employee by the employer is not transferred to the lender. As a result, any further creditors of the employee-borrower can apply to seize up to one-fifth of their salary even when it is the object of financing through a delegated loan;
- in theory, it is possible to take out a loan for more than 120 months.
- Use: meets the funding needs of specific groups of individuals (employees and pensioners) with predefined loan issuance and repayment methods (deduction at source of a portion of the salary/pension);?
- Client groups: single individuals who can apply for a loan based on their status as recipients of income from employment or from a pension.
The salary loans market is segmented by type of borrower and deduction at source of the repayments, according to whether they are:
- Public-sector employees;
- Private-sector employees;
Databank’s methodology for Competitors reports begins with a careful screening to identify the main organisations that are representative of a given sector. Several one-to-one interviews are then conducted with the selected organisations. Questionnaires are sent to all the leading companies on an annual basis. The information collected is then verified by an expert in the particular sector using a system of counterchecks to guarantee that the information is entirely reliable and consistent. The process is then completed using Cerved Group’s proprietary information about Italian enterprises. All Competitors reports also include details concerning the strategies and performances of the leading companies in each sector.
Wherever no specific source is indicated, the information published in these reports can be assumed to have been taken from Cerved Group’s proprietary information bank. Coverage of any sector in Competitors products may be used in company presentations or in training courses on the subject.
1. INTRODUCTION TO METHODOLOGY 5
2. SECTOR DESCRIPTION 6
2.1. Scope 6
2.2. Segments 7
3. EXECUTIVE SUMMARY 8
. 3.1. Key sector data 8
. 3.2. Supply and demand trends 9
. 3.3. Market leaders 9
. 3.4. Business strategies 10
4. SECTOR ENVIRONMENT 11
. 4.1. Sector data 11
. 4.2. Competitive forces 12
. 4.3. Notable recent events and developments 13
5. DEMAND ANALYSIS 16
6. SUPPLY ANALYSIS 20
. 6.1. Key characteristics 20
. 6.2. Sector financials 21
7. COMPETITIVE SCENARIO 32
. 7.1. Types of operators 32
. 7.2. Ranking of companies 32
. 7.3. Competitive performances by segment: market share 45
8. STRATEGIES OBSERVED 49
. 8.1. Strategic map of operators 49
. 8.2. Winning strategies 52
9. OPPORTUNITIES AND THREATS 54
CONNECTED PRODUCTS AND SERVICES 55
List of Tables and Graphs:
LIST OF COMPANIES ANALYSED
KEY MARKET DATA
SALARY LOANS OF ONE-FIFTH: VALUE OF LOANS ISSUED, 2008-2012
SALARY LOANS OF ONE-FIFTH: IMPACT OF COMPETITIVE FORCES, 2011
CONSUMER CREDIT: VALUE OF LOANS ISSUED BY BUSINESS LINE AND SEGMENT, 2006-2010
CONSUMER CREDIT: LENDING IN ITALY BY SEGMENT, 2010
NON-SPECIFIC LOANS BY SEGMENT, ITALY, 2010
CONSUMER CREDIT: AGGREGATE INCOME STATEMENT, 2007-2009
CONSUMER CREDIT: AVERAGE TOTAL EFFECTIVE PERCENTAGE RATE OF CHARGE (TEG) DISCLOSED PURSUANT TO THE LAW ON USURY, DISCOUNT RATE AND EURIBOR, 2007-1H2009
CONSUMER CREDIT: AVERAGE TOTAL EFFECTIVE PERCENTAGE RATE OF CHARGE (TEG)(a) DISCLOSED PURSUANT TO THE USURY LAW, DISCOUNT RATE AND EURIBOR, 2H2009 & 2010
SALARY LOANS OF ONE-FIFTH: PERCENTAGE OF TOTAL INCOME(a)/TOTAL ASSETS RATIO AND OPERATING INCOME/TOTAL ASSETS, 2009-2010
SALARY LOANS OF ONE-FIFTH: PERCENTAGE OF COMMISSION INCOME/TOTAL INCOME(a), 2009-2010
SALARY LOANS OF ONE-FIFTH: PERCENTAGE OF OPERATING COSTS(a)/TOTAL INCOME(b), 2009-2010
SALARY LOANS OF ONE-FIFTH: PERCENTAGE OF PERSONNEL COSTS/TOTAL INCOME(a), 2009-2010
SALARY LOANS OF ONE-FIFTH: AVERAGE EMPLOYEE COST, 2009-2010
SALARY LOANS OF ONE-FIFTH: REPORTED NET INCOME, 2008-2010
SALARY LOANS OF ONE-FIFTH: KEY FINANCIAL INDICATORS, 2008-2010
SALARY LOANS OF ONE-FIFTH: VALUE OF LOAN PORTFOLIO BY MAIN PLAYER, 2008-2010
SALARY LOANS OF ONE-FIFTH: TOTAL INCOME AND NET INCOME BY MAIN PLAYER(a), 2010
SALARY LOANS OF ONE-FIFTH: RATIO OF LOAN PORTFOLIO/TOTAL CONSUMER CREDIT BY MAIN PLAYER, 2010
SALARY LOANS OF ONE-FIFTH: DELEGATED PAYMENT LOANS BY MAIN PLAYER, 2008-2010
SALARY LOANS OF ONE-FIFTH: PERCENTAGE OF DELEGATED PAYMENT LOANS/TOTAL LOANS BY MAIN PLAYER, 2010
SALARY LOANS OF ONE-FIFTH: LOAN PORTFOLIO OF MAIN PLAYERS BY CLIENT GROUP, 2010
SALARY LOANS OF ONE-FIFTH: % BREAKDOWN OF LOAN PORTFOLIO OF MAIN PLAYERS BY CLIENT GROUP, 2010
SALARY LOANS OF ONE-FIFTH: AVERAGE LOAN VALUE BY MAIN PLAYER, 2010
SALARY LOANS OF ONE-FIFTH: AVERAGE VALUE OF DELEGATED PAYMENT LOANS ISSUED BY SOME MAIN PLAYERS, 2010
SALARY LOANS OF ONE-FIFTH: AVERAGE LOAN BY CLIENT GROUP OF SOME MAIN PLAYERS, 2010
SALARY LOANS OF ONE-FIFTH: LOCATION, SHAREHOLDERS AND NUMBER OF EMPLOYEES BY MAIN PLAYER, 2010
SALARY LOANS OF ONE-FIFTH: LOANS BY GEOGRAPHICAL AREA OF SOME MAIN PLAYERS, 2010
SALARY LOANS OF ONE-FIFTH: % BREAKDOWN OF LOANS BY GEOGRAPHICAL AREA OF SOME MAIN PLAYERS, 2010
SALARY LOANS OF ONE-FIFTH: VALUE OF LOAN PORTFOLIO AND MARKET SHARE OF MAIN LENDERS, 2009-2010
SALARY LOANS OF ONE-FIFTH: VALUE OF LOAN PORTFOLIO AND MARKET SHARE(a) OF MAIN RETAIL PLAYERS, 2009-2010
SALARY LOANS OF ONE-FIFTH: MARKET SHARE BY CLIENT GROUP OF SOME MAIN PLAYERS, 2010
SALARY LOANS OF ONE-FIFTH: MAP OF STRATEGIC GROUPS, 2011
SALARY LOANS OF ONE-FIFTH: OPPORTUNITIES AND SHORT TO LONG-TERM IMPACT, 2011
SALARY LOANS OF ONE-FIFTH: THREATS AND SHORT TO LONG-TERM IMPACT, 2011
APULIA PRONTOPRESTITO S.P.A.
B.N.L. FINANCE S.P.A.
B@NCA 24-7 S.P.A.
BANCA DELLE MARCHE S.P.A.
BANCA DI CREDITO POPOLARE SCPA
BANCA DI SASSARI S.P.A.
BANCA POPOLARE DELL'EMILIA ROMAGNA SC
BANCA POPOLARE DI MILANO SOC.COOP.A R.L.
BANCO DI DESIO E DELLA BRIANZA SPA
BANCO DI SARDEGNA S.P.A.
BANCO POPOLARE SC
BARCLAYS FAMILY S.P.A.
C.I.F. CENTRO ITALIANO FINANZIARIO S.R.L.
CASSA DI RISPARMIO DELLA PROVINCIA DI CHIETI S.P.A.
CONAFI PRESTITO' S.P.A.
CREDITIS SERVIZI FINANZIARI S.P.A.
DEUTSCHE BANK S.P.A.
ELLENICA FINANZIARIA S.P.A.
FAMILY CREDIT NETWORK S.P.A.
FIDES - ENTE COMMISSIONARIO PER FACILITAZIONI RATEALI AI LAVORATORI SPA
FIN SOLUTION ITALIA S.P.A.
FUTURO S.P.A. - CON SOCIO UNICO
IBL FAMILY S.P.A.
INTESA SANPAOLO SPA
KENT FINANZIARIA S.R.L.
MONEY SERVICE DI MARCO BENETTI E C SAS
NEOS FINANCE S.P.A.
PITAGORA FINANZIAMENTI CONTRO CESSIONE DEL QUINTO S.P.A.
POSTE ITALIANE SPA
SANTANDER CONSUMER BANK S.P.A.
VALLELONGA SERVIZI FINANZIARI S.P.A.
VENETO BANCA S.P.A.
Order by Fax - using the order form below
Order By Post - print the order form below and send to
Research and Markets,
Fax order form
To place a fax order simply print this form, fill in and fax the completed form to the number below. If you have any questions please email firstname.lastname@example.org
Please verify that the product information is correct and select the format you require.
Salary Loans in Italy
Please enter the quantity of the report format you require.
|Hard Copy||EUR 3300 + EUR€ 50.00 Shipping/Handling *|
|Electronic (PDF) - Site License||EUR 5600|
|Electronic (PDF) - Enterprisewide||EUR 8400|
|Electronic (PDF) - Single User||EUR 2800|
* Shipping/Handling is only charged once per order.
Please enter all the information below in block capitals.
Please fax this form to:
(646) 607-1907 or (646) 964-6609 (from USA)
+353-1-481-1716 or +353-1-653-1571 (from Rest of World)
Please indicate the payment method you would like to use by selecting the appropriate box.
Please post the check, accompanied by this form, to:
Research and Markets,
Please transfer funds to:
27-35 Main Street
If you have a Marketing Code please enter it below:
Please note that by ordering from Research and Markets you are agreeing to our Terms and Conditions at http://www.researchandmarkets.com/info/terms.asp