Loans for unemployed young people: how they work and how to get them. For unemployed young people or those who have recently lost their jobs, there are opportunities to get a loan. Some banks have provided a series of alternative solutions for all those who do not have, on paper, the characteristics to apply for a loan or a personal loan. Let’s find out what these possibilities are.
Honor loan for starting a new business
The Legislative Decree 185 of 04/2000 introduced the so-called honor loans that allow even those who do not have a paycheck to be able to apply for funding to start a new business. The loan of honor allows you to obtain a variable amount of which 50% will be granted as a non-refundable loan while the remaining 50% at a subsidized rate.
This means that its return is expected but with very low interest rates. Applicants must obviously have a number of requirements. This loan is aimed at unemployed young Italians or looking for a first job. The only constraint they have, applicants, is to not sell the business for at least five years. In the same period they will not even be able to sign a permanent contract.
Honor loan for university students
This funding is granted exclusively to complete your course of study. To obtain this type of loan, an agreement stipulated between the university and the credit institution is necessary. Usually no more than four or five thousand USD are financed. They are loans that have a very simple disbursement procedure, for which neither a guarantor nor the presentation of the paycheck is needed. Furthermore, the repayment of the debt takes place exclusively after the achievement of the objective: no installment, therefore, before graduation but only after the end of the studies, as soon as a job is found.
For those who do not fall into the latter categories, there is still another possibility. It is possible to request personal loans from one of the many banking or financial institutions. In this case, the ideal would be to offer a paycheck as a guarantee but if you find yourself in an unemployment phase, for very small amounts you can also use a guarantor. Indeed, it is the guarantor who intervenes in the repayment of the loan in the event of the contractor’s insolvency: this can be a good guarantee for banks.
If you are looking for a loan to carry out your projects.