Loans for young people
Getting liquidity for personal or professional projects can be difficult, especially if you have been working for a short time and if you have not managed to save a lot of savings. A company, that of finding loans for young people, which is even more difficult considering the current economic situation, characterized by youth unemployment which is around 40%.
In fact, nowadays it is very difficult for a boy to offer a paycheck or a Cud as a guarantee for a loan. So how do you access credit? In these cases, loans for young people can be used , ad hoc options characterized by high flexibility and undemanding guarantees.
Not only. Those who are looking for loans for young people to finance a course of study or the start of an entrepreneurial type of activity can resort to non-repayable loans made available by the various public bodies (European Union, state and local authorities) in order to to encourage development in the area. But let’s see in detail what are the alternatives to obtain loans for young people.
Funding for students
In order to meet the needs of young people who wish to follow a course of study but do not have the necessary economic resources, some credit institutions have developed products dedicated to students.
How do they work? In most cases, these are credit lines which provide for the granting of credit on a current account. money that will remain in the student’s availability for a certain period of time (usually until the end of the studies) and will subsequently be converted into a personal loan.
The money made available by the bank can be used both for the payment of masters and training courses, for the purchase of books or to carry out any other expenses attributable to training (for example, the payment of accommodation).
These university student loans are often the result of an agreement between the bank that grants them and the various universities. Hypotheses where the rates applied are quite convenient. In some cases, but this is a very rare thing, a part of the capital disbursed is granted without a grant.
Among the various credit institutions that provide loans for young university students we find Unicredit which offers the Ad Honorem loan. This is a loan dedicated exclusively to students of universities affiliated with the bank and allows access to sums up to 27,700 USD.
Money that is made available to the student through a credit line on his UniCredit account which can have a variable duration. This depends on the type of course of study that the beneficiary has decided to undertake.
Once this period has ended, the credit will be transformed into a personal loan which must therefore be repaid. Obviously this only applies to the sum that the student has actually used.
However it is necessary to specify that if at the end of the period foreseen for the credit line, the student has not yet found a job that allows him to repay the loan, he can choose to postpone the payments.
In fact, it is possible to request the benefit of the so-called grace period. It is a period during which the student has the option of not repaying the loan (neither principal nor interest). The grace period can last for a maximum of two years and does not entail the accrual of further interests.
At the end of the grace periods, however, it will be essential to start repaying the loan with an amortization plan in monthly installments. The repayment can range from a minimum of 12 to a maximum of 180 months.
Subsidized loans for entrepreneurs
So far we have seen loans dedicated to young people who wish to take up a course of study, but these are not the only ones that can obtain loans for young people. In fact, on the market it is also possible to find financing for those who want to start an entrepreneurial business.
Credit that can be granted either through European Funds, or through competition notices issued by state or local bodies. In both cases, access to the facilities provides for the possession of specific requirements, indicated by the relative calls.
It is therefore not possible to outline general characteristics for loans for young entrepreneurs. To know all the information regarding the requirements to be respected and the method of submitting the application for each facility, it is therefore necessary to refer to the official website of the body that provides it.
Grants and subsidized rate contributions
In any case, remember that loans for young entrepreneurs can come in two forms, that is, as non-repayable loans or as subsidized loans.
The most common are subsidized loans, which allow you to repay the sum obtained by benefiting from particularly advantageous interest rates, in some cases even at zero interest rates. Another advantage is represented by the fact that the repayment plan can also be very extensive over time, even reaching around 10 years.
The question is different when it comes to non-repayable loans. In this case, in fact, the sum disbursed, or part of it, must not be reimbursed and a subsidized interest rate is applied to any portion to be returned.
It is therefore an extremely advantageous form of access to credit, but which nevertheless also has some negative sides. First of all, the fact that contributions are often limited and access to credit, even once admission to the subsidies has been obtained, can take quite a long time.
How does the Youth Guarantee 2017 loan work?
When it comes to contributions for self-entrepreneurship support, it is impossible not to mention the 2017 Youth Guarantee loans. These are loans granted, through a specific European fund, to children under the age of 29 who wish to start a business.
The program aims to guide aspiring entrepreneurs in the start-up phase of their projects. Youth Guarantee provides for the granting of economic incentives up to a maximum of 50 thousand USD (minimum 5 thousand) to be repaid with an amortization plan that can extend for 7 years. Beneficiaries also have the opportunity to participate in a targeted training course.
Contributions are granted by the National Agency for the Attraction of Investments and Business Development, which deals with both evaluating applications and granting credit. Recall that the loans are called SELFIEmployment.
Small bank loans for young workers
In the category of loans for young people we do not find only the loans dedicated to students and those who want to start a business, but also real personal loans dedicated to young workers.
Being products dedicated to younger workers, these loans presuppose the presence of a reduced working seniority, and consequently provides for the grant of rather low sums. In this regard, it is possible to evaluate various small loan options offered by both credit institutions and financial companies.
Among the various alternatives in this regard, we can mention the one proposed by Best Bank. What are the characteristics of the offer? The possibility of applying for a loan starting from $ 2,000, the customization of monthly installments and the fixed rate for the entire duration of the amortization plan.