Loans for young people: home page, information and complete guide
Over the past few days there is always found more before a wide range of offers of loans that can be accessed in the event that it needs more cash to deal with urgent expenses, mainly to carry out a personal project. On the podium there are also loans for young people : these are forms of financing designed to meet the needs of clients between the ages of 18 and 35.
That of young people is in any case a particular category both for banking institutions and for financial institutions in that it is a clientele that does not always possess stable guarantees on the economic front and above all income. Hence the decision to devise special forms of financing for students and young entrepreneurs who can realize their dreams: we are talking about loans aimed perhaps at buying a new car, starting a new business or even maintaining studies university students.
When compared to the classic personal loans
for which it is necessary to have a fixed and above all demonstrable salary, the loans for young people do not have, instead, among the main requirements that of the occupation of the applicant. Naturally, other forms of guarantees are needed that give certainty to the institution providing the loan that the debt will be paid. Most of these forms of financing have a payable amount of between € 500 and € 15,000. It is normal then that every credit solution changes according to the institution that promotes it.
If you fall into this customer category and want more information on this, we recommend that you continue reading this guide . The intent of this article is to provide, in fact, every element of deepening to the new generations and to clarify any doubt so that all the boys can get to ask for a loan for young people without any kind of difficulty.
Loans for young people are forms of financing designed to meet the needs of students and workers who are under the age of 35 and who intend to complete a project. These financial solutions have been designed to lend a hand to those who do not have sufficient capital to carry out their own dream: to start their own business or study and specialize in some particular subject. There are many loans for young people with different characteristics from one another. Let’s find out together!
Let’s start with grants for young people: this is one of the most followed roads in recent times. This funding is aimed at young entrepreneurs and star ups. There are various types of funding: non-repayable regional funding, non-repayable state funding and non-repayable European funding.
The main feature of non-repayable loans is that there is no repayment of the loan money. Furthermore, interest earned on this loan must not be repaid.
This loan was designed to address a clientele aged between 18 and 36 years . This is funding designed for those who intend to set up cooperatives and new companies: SNS, SNC, SPA, SPAA, SS. Let’s take a more concrete example in order to make the concept clearer: if we have to open a simplified limited liability company (Ssrl), we can request 10,000 euros but the cost will be only one euro. Furthermore we will not even have to pay the costs of the notary.
How does it work? Then the State provides 35-50% non-repayable capital and the remainder of the loan provides for installments with subsidized rates for the next five years. Young people will be able to open a franchising business, a micro-enterprise or start a business. There are three roads that can be followed. The non-repayable loans were designed to support young entrepreneurs under 35 who in the past have been faced with many difficulties in accessing credit .
In order to apply for a non-repayable loan, you must promote a project . This plan must be characterized by all the necessary information that makes clear the type of company to be launched or strengthened. In addition to the grant application, other documents must be submitted in order for the application to be accepted. Let’s see together which are the cards to be attached to the loan request.
- Demand for subsidies : in this module there are all the fundamental news concerning the type of company and the purpose of the investments.
- Technical sheet : in this document it is necessary to describe in detail the new type of activity you intend to start.
- Certificate of registration in the register of companies of the Chamber of Commerce : there is no need for this document when the individual companies are not yet registered.
- Lease, ownership or assignment of building : in the document you must certify the availability of a property where you can carry out the activity. The building can be rented, owned, granted by the state, assigned and so on. However, each contract must have been registered before submitting the application to obtain a non-repayable loan.
- Intended use of the premises : the building selected to carry out its activity must be suitable for the purposes of the company. A hotel, for example, must be located in an area that is suitable for receiving tourists and visitors.
Loans for students
Very popular, among the loans for young people, there are the loans for students who intend to pursue a course of study (three-year or specialist degree) or enroll in a university master’s or post-graduate course. However, these forms of financing can also be used to simply purchase teaching tools and materials.
Loans for university students arise from an agreement between credit institutions and university faculties. In fact, these loans are characterized by a subsidized rate for students.
The loans of honor, in addition to supporting financially the boys who want to start a business, also serve to support young people in university or post-graduate training . Also in the case of training, this last form of financing envisages that a part of the capital is disbursed as a loan and another as a loan that will then be returned to the credit institution at a reduced rate .
Loans for young entrepreneurs
There are many young people who, especially in recent years, decide to invest in their own future, creating the basis for an autonomous activity . Many, however, need to apply for funding to carry out this project. There are many financial solutions depending on the needs of the applicant. Young entrepreneurs , in particular, can access non-repayable loans, as we have seen previously, and the Youth Guarantee Fund.
Non-repayable loans for young entrepreneurs do not have time constraints to obtain the facilitation. The projects that can be financed by this credit solution are those linked to: production of agricultural, craft or industrial goods; provision of services to businesses, with the exception of public administrative services and commercial and tourist activities.
These loans for young entrepreneurs can be up to 50 per cent non-repayable. The remainder is a loan that can be repaid in 10 years.
A different subject, however, for the Youth Guarantee Fund. It is always a financial solution designed to facilitate the entry of young people into the world of work . This provision is aimed at those aged between 18 and 29 years.
The idea is to accompany the young entrepreneur from the start-up phase to the realization of his industrial project. The project ensures economic incentives and also presents a training course to support all the development phases of the business project.
At the end of the training course the loan applicant accesses the fund: the provision of zero-interest loans for figures between € 5,000 and € 50,000. The loan does not provide personal guarantees. In addition, an amortization plan is envisaged that has a maximum duration of seven years.
The loan application for doing business
Who among the young entrepreneurs can consult the application to get the loan? And how should we proceed? These are some of the questions that arise before the request for funding . First and foremost it will need to interface with the Onvitalia company. For non-repayable loans, three avenues can be pursued: micro-enterprise, self-employment and franchising. In other cases it will not be possible to access loans with a non-repayable or zero interest rate. The other credit institutions or financial companies will demand – in the event of another loan application – additional guarantees. And this could be compromising for a young person who may not have a fixed and continuous income. It is clear, in fact, that banks cannot grant non-repayable loans so that a young person can do business . This road can be pursued only with the use of European funds and the guarantee fund for small and medium-sized enterprises. An important step forward, therefore, for young entrepreneurs.
Loans for young people without work
Young people are a very complex type of clientele for credit institutions. It is well known, in fact, that the new generations are not always able to have occupational stability and therefore to have all the requisites that are usually required by banks and financial institutions to obtain a traditional personal loan . What to do then? Should we put the soul in peace and surrender? No, of course it is not so. Give a sigh of relief and proceed to reading!
Many banks have decided to reach out to younger people through forms of financing suitable even for those without a job. The pay slip is not the only guarantee to be presented.
One of the guarantees required to obtain a loan when you are young and perhaps without a pay slip is the guarantee . The applicant of the loan must present himself in the company of a guarantor , that is a person who can take charge of the payment of the loan installments if the young person becomes insolvent and is no longer able to pay the debt.
Another opportunity offered by banks to young people who do not have a permanent job is to present a regular rental contract or perhaps to register the mortgage on a property that is owned. This is funding for those who do not have a pay slip and therefore do not receive a fixed salary: there are many young people who belong to this type of user. In these circumstances the only thing to do to give greater certainty to the bank is to offer other forms of loan guarantees.
How to apply for a youth loan
Applying for a youth loan is not that difficult. The request to obtain this type of loan from a financial institution or a financial institution is very similar to the one applied when applying for a classic personal loan. The first thing to do is to find out about the costs and characteristics of the various credit solutions on the market today. There are also different online platforms that allow you to compare the various types of loans so that you can choose the type of loan that suits you best.
The second step is for the young person to make an appointment with the bank or finance staff to apply for funding. Also in this case the internet can be useful to show you the branch closest to your home. The question changes if you are thinking of applying for a loan online. Here the operation will be completely virtual: you send the request to get a quote and in the end you manage the entire loan through your home computer.
Banking institutions that also work through the web are able to ensure that young people enjoy more affordable interest rates. In these cases, in fact, both the costs for the management of the physical branch and the costs of the banking staff acting as intermediary are reduced.
If you choose the web route, the loan application must be submitted online and in some cases the contract can also be signed with a digital signature . If your application is successful and has therefore been approved by the credit institution, then all the documents required must be presented in order for the requested sum to be paid. Of course in this case we are talking about the simple loan request for young people to be presented at a credit institution. The situation changes when the demand is aimed at obtaining non-repayable loans from the Region, the State and the European Union.
The young entrepreneurs who will undertake this path aimed at a non-repayable loan will first have to fill out a request that can also be downloaded on the internet and more precisely on the Chambers of Commerce website and then send the completed form with registered letter with return receipt.
The documentation can be presented in the same way at one of the company’s regional offices.
In addition to the application, a series of documents must also be enclosed in duplicate, such as: the business project and the copy of the company’s deed of incorporation; the certificate of validity, that is the card that presents all the main information of the company, starting from the date of its first construction; the certificate that the company headquarters is located in the territories of application of the law; the certificate that establishes that the new company is made up of members who are between 18 and 35 years old. Sviluppo Italia will inform the applicants of the unsecured loan on the outcome of the application after a period of at least six months . If the application is accepted, the young aspirants will be able to go to Rome where an interview will be held to better establish the type of non-repayable funding they will benefit from.
There are so many types of funding
There are loans dedicated to research and development, others focused on environmental protection, others related to alternative energy and recycling, other projects aimed at women and housewives . There are also loans designed specifically for young graduates who want to improve and increase their education or launch their own start-up.
In this article we understood, then, that young people should not give up and give up their dreams at all. Doing business, specializing in studies is allowed for everyone, even when there is not enough liquidity . Having access to credit is possible through various avenues and based on what you have and your personal needs. Even those who have no demonstrable or fixed income can be the recipient of a loan in the presence of other guarantees that can ensure the bank that there will be no insolvency. You can have a loan even if you are young and do not have a permanent employment contract or you do not have a paycheck.
In other more complex cases, where guarantees are really minimal, there are also banks that grant young people a credit card with a maximum amount, and for current account holders also a credit of 1,000 or 2,000 euros or even loans which provide for small amounts of money. In short, there is a bit for everyone, guys!