Loans for young people: benefits and types
Today the proposals for loans for young people are more and more, however they represent a particular clientele for banks and credit institutions, since they require small loans and have no long-term employment contracts and therefore no income guarantee.
Despite this, most banks provide credit solutions designed for students and young entrepreneurs between 18 and 35 years of age. The reasons for the requests can be the most varied: the purchase of cars, the maintenance of university expenses, travel, and much more.
Loans are also often dedicated to young people for opening new businesses. These loans often they come from the European Union and are non-refundable or of regional origin. Common elements to these cases are the zero rate and the absence of preliminary costs.
Types of loans for young people
Loans for young people can be divided into four categories:
- non-repayable loans : they do not provide for the repayment of the loaned capital or the interest accrued on it. They are aimed at young people aged between 18 and 36 who intend to set up a new company, small and medium-sized cooperatives;
- honor loans : mainly intended for students attending a degree course (three-year or specialist), for those wishing to enroll in a university master’s degree or a post-graduate course. But also for the purchase of musical instruments and materials;
- loans for young entrepreneurs: through non – repayable loans or the Youth Guarantee Fund, the set of measures proposed at European level to facilitate the insertion of new generations into the working world. It is aimed at young people aged between 18 and 29;
- loans for unemployed young people : even those who are unemployed can apply for a loan using alternative guarantees. Like the guarantee, which provides for the presence of a guarantor, ready to take on the payment of the loan installments if the young person is no longer able. Alternatively, it is possible to present a regular rental contract or to register the mortgage on a property.
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