Loans to young people: guide to choose the right loan
The difficulty of finding a job or being able to give yourself a home, or even to follow and perfect your studies, can find the most suitable answer in the facilitations of young loans. In fact, focusing precisely on the difficulties in accessing credit, various large banks have created an offer dedicated to an age group which is mainly between 18 and 35 years of age.
As regards young loans for starting a business, on the other hand, the most provided channels of offers can be the ‘institutional’ ones, namely:
- regional funds;
- state funds.
Differences between public and private offer
Let’s start by pointing out that compared to a decade ago it has become very difficult to find an honor loan with completely non-repayable financing. On the other hand, the public offer allows for two forms of safe “facilitation”, namely:
- access to credit without having to provide personal guarantees;
- facilitated repayment methods: low rates and, in some cases, a non-repayable part.
To these aspects, however, is added what can be a great limit or the lack of total coverage of the cost to be incurred to start the business with percentages that vary according to the regional regulations approved with the various assignment notices.
The private offer, or that of the banks, depends instead on the purpose for which the loan is requested by dividing into:
- young loans for personal expenses (such as buying a house, a car, etc.). These may provide for facilitated conditions but almost always also pass through the presentation of appropriate guarantees (therefore if the young person does not have a demonstrable income he will probably have to present a guarantor);
- “honor” young student loans: on the basis of agreements with universities adhering to specific agreements, students who have certain merit requirements, can obtain funding to continue their studies or take specialization courses, without having to repay financing immediately and, above all, without the need for guarantors;
- young loans for starting the business: the banks that provide this possibility need valid business plans and can request specific requirements and guarantees, which vary according to the type of request, amount, customers, etc.
At the state level, the funds are now granted through Invitalia, an agency that has been specifically created to support the launch of new businesses with an eye for young people and women. An example in May 2018 is with “New Zero Rate Companies”.
As can be seen from the name, the loan is at zero interest, covering up to 75% of the expenses incurred for an amount of up to 1.5 million USD. At the end of March 2018 (Invitalia official data), this fund had already funded 393 initiatives for a total of 80 million USD.
Mainly exploit the microcredit route
Instead the Regional funds today mainly exploit the microcredit route. An example is found with Future fund of the Lazio region. This is not a novelty but a loan that has already been used previously, proposed with the allocation of new funds. Referring to the version launched in the spring of 2017 until the fund is exhausted, a rate of 1% has been envisaged for amounts between 5 thousand and 25 thousand USD of financing. Again, young people are among the target groups for this initiative.
Banks have credit policies subject to the strategies that the boards of directors decide to follow, but there is no doubt that some banking groups have shown consistency in providing loans for young people in their offer.
Let’s look at some of these examples.
Subsidized loan with a fixed rate
Those who meet the requirements set by Nice Bank can obtain a subsidized loan with a fixed rate which can reach a maximum of 8.19% in Taeg without the application of the preliminary costs. The sums range from 500 to 15 thousand USD for personal expenses. For information you can use the online option while for the request you must still go to the branch.
With Nice Bank offers young people the possibility of requesting up to $ 30 thousand, at a fixed rate (on May 8, 2018, equal to 6.99%) and a duration of up to 84 months. The basis for evaluating the request is the project for which funding is requested, therefore one must inquire directly with one of the Ubi agencies.
Best Bank has seen the offer of Fast Loan for a long time in the vast range of Fast Loan, but it is above all with the double offer of the honorary loan that it continues to focus on the talent of young people.