Loans for young people: how to access funding

Loans for young people: how to access funding

Loans for young people without paychecks and guarantees

Loans for young people without paychecks and guarantees

Loans for young people represent an increasingly widespread need both for the crisis and for the simple desire to defer substantial payments over time. However with youth unemployment over 40% it is rather difficult for a boy to access a loan without offering the guarantee of a paycheck or cud. So how do you get financing?

Various lenders offer young people aged 18 to 35 products specially designed to meet the needs of this category of customers. Funding is also available from the European Union and from local authorities to help young entrepreneurs and those who want to start their own businesses.

Another credit solution dedicated to young people is that of student loans, also called honor loans. In most cases, these are loans granted in the form of capital available on a current account, which the student can use to meet expenses related to his / her education (for example, for the purchase of books or to pay the cost of a master or a specialization course).

Once the studies are completed, the young person can choose whether to return the sum financed in a single solution or wait for the time necessary to find a job and then start the installment. Most banks allow you to postpone repayment of honor loans for up to 12 months.

In principle, the rates applied to student loans are much cheaper than those for traditional personal loans. Those who wish to apply for a student loan can contact the secretariat of their faculty. In fact, it often happens that banks and financial companies enter into agreements with universities, offering loans at more advantageous conditions.

How to get loans for young entrepreneurs

How to get loans for young entrepreneurs

As for loans for young entrepreneurs, the solutions are different. As already mentioned, in fact, in addition to the EU there are several local authorities that deal with offering financial support to young people who want to start a business or improve the existing one.

To tackle the phenomenon of youth unemployment, the EU has founded Youth Guarantee, a program which aims to promote employment and bring young people closer to the labor market.

The project guarantees young people under 30 a qualitatively valid offer for the continuation of their studies or a job, traineeship or apprenticeship offer within 4 months from the end of their studies or from the beginning of unemployment.

Among the guarantees offered by the Youth Guarantee we also find those dedicated to self-entrepreneurship. Young people aged 18 to 29 are offered services to support the development of entrepreneurial attitudes and the start of business or self-employment activities, from accompaniment from the start-up phase to the realization of the business idea.

Non-repayable loans: how to access them

Non-repayable loans: how to access them

Still on the subject of EU funds, we also find the European Region Development Fund and the PSR (Rural Development Plan). The first finances the construction of infrastructures and investments aimed at increasing employment in Italian companies.

The second is the instrument with which the Regions disburse Community funds to improve the agricultural and forestry sector. Since these are contributions paid on a regional basis, those who wish to access the RDP or the European Region Development Fund must contact their region.

Finally, we mention the loans for young entrepreneurs of Best bank, a national agency that provides state concessions for self-employment. Among the forms of incentives provided by Best bank we mention Start & Smart, a fund for the start-up of innovative start-ups that allows every aspiring entrepreneur to access financing of up to 70% of the eligible expenses or costs.

Percentage rising to 80% if the start-up in question is made up exclusively of under 35s or women. Interest payments are not expected. Best bank also provides non-refundable incentives for self-entrepreneurship for unemployed and unemployed people who wish to start a self-employment, micro-enterprise or franchise business.

Robert Reyes