How to get a young loan
This type of financing is traditionally part of the category of personal loans, and their peculiarity lies in the fact that they were introduced in the context of funding by the same legislator who felt the need to provide solutions that enjoy some advantages that are attributable in practice to:
lower rates than the market average;
- facilitated supply conditions;
- favorable conditions for return.
However, the employment problems affecting mainly young people led the legislator himself, and then for some years also many regions (such as Lazio, Lombardy, Sicily, etc.) to create guarantee funds. These have the objective of granting loans not only on better terms (to allow the start of a business or the realization of a social project) but also easier to obtain.
For these the most used forms are:
- the youth loan;
- the low-rate one.
All three of these conditions can be present in the same fund: for example, a portion of the loan granted is a non-repayable loan, while another is with subsidized rates.
For each type of young loan, the one of honor, the guarantee funds, the soft loans or non-repayable loans, etc., different requirements are envisaged. In many cases the subsidy affects adults who are under 35 years of age, but for some calls the maximum age is up to 40 years (especially in the agricultural sector), while for others we stop at 28 or 29 years old.
So you have to see case by case which are the required requirements.
Given that above all those provided by the Regions are assigned by tender, you must be informed about the news but above all read the regulations approved by the councils, which report requirements and methods of participation.
Another important distinction is between the guarantee funds and the funds that provide for direct payments of contributions. In the first case, the fund facilitates access to credit because part of the loan is guaranteed by it, until it is exhausted. It is therefore necessary to contact the partner banks.
On the other hand, direct contributions can be of an early or postponed type and involve the payment of sums with certain times that very often can involve medium-long times.
Honor loans were initially planned to help young entrepreneurs, those who have specific requirements such as: age between 18 and 35 and a business project that falls into the categories that can access this type of financing.
The honor loan for young entrepreneurs provides for the disbursement that takes place on the basis of funds allocated by the State or the Regions, and according to the projects presented, a ranking is drawn up which establishes the sum paid and those to whom the funding.
Today there are almost no more non -repayable loans, except for very low percentages, even if the sums financed still benefit from subsidized rates and particularly favorable repayment and repayment terms. The maximum amounts provided are indicated by the same notice of assignment, but on average the maximum financeable sum is set at 50 thousand USD, with repayment plans up to 10 years.
Soft loans for students and funding from the European community
Currently, another more specific form of honor loans for young people has spread, as it is intended for students. These loans were created to allow for expenses related to university training, specialization or master costs.
Normally these do not exceed the threshold of 15,000 USD and provide for a 5-year amortization plan. Many universities sign agreements with credit institutions (such as Unicredit, Intesa Bankate and ASW, of which Astro Finance is also a part) to facilitate access to credit for students thanks to the application of privileged economic conditions.
These loans are provided by the banks and to obtain information it is generally sufficient to contact the universities or directly with the affiliated banks, while for the loans of honor for young entrepreneurs it is necessary to contact your own region and inquire on the website of the ministry of youth.
It is often the European community itself that provides funding for young people who choose to carry out certain activities. In this case, these are sums that are often paid, at least 50% still with the formula of the “lost” fund.
To get information you need to go to the website of the European community, and since it is funding provided with a call for applications, you must act in a timely manner and keep yourself constantly updated (some financing plans have value for several years, but each year a specific amount is assigned until its exhaustion).
Loans for precarious young people
The precarious work situation has become a widespread practice in youth work. Getting a loan with an atypical or precarious job is very difficult. However, some banks have entered into agreements that allow loans to be made available to young people with precarious work, who do not benefit from the conditions applied to the loan, but in the possibility of obtaining a loan that in other situations would almost certainly not be granted.
Funding for young entrepreneurs, even with grants
The current economic situation characterized by a severe crisis has prompted the Italian government to implement new forms of incentives for entrepreneurs aged 29 or under. In particular, we refer to Law 95/95 which is still one of the most convenient.
To obtain the loan, you must simultaneously meet the following requirements :
- Space : the activity must be located and developed in depressed areas. This term indicates those areas characterized by a weak economy. Currently among the regions enclosed in this term we find Puglia, Calabria, Sicily, Campania, Sardinia, Lazio and Basilicata.
- Personnel : if the business activity is developed through corporate form, the majority of the members (numerical or financial) must be aged between 18 and 29, or all members must be between the ages of 18 and the 35 years.
- New : the entrepreneur must be qualified as a new entrepreneur.
- Sectoral : the legislator indicates with precision all the sectors in which it is possible to exploit such facilities. For example, we find that of agricultural production or services for businesses.
- Economic : the project must be quantified for a minimum value of 2.5 million USD.
To get up-to-date news and to know in detail all the features of the forms of financing for young entrepreneurs, I suggest you visit the website www.parlamento.it frequently.