Surely you will have heard of honor loans, especially if in this period you are looking for a personal loan that can allow you to fulfill your desires and your professional aspirations. So let’s try to clarify what is meant by honor loan, who can apply for it and how to get it. Here is a small guide on the subject.
What is the loan of honor
When we speak of honor loans, we refer to a particular type of loan that is granted to young people (visit the section => youth loans ). This sum, which can be of variable amount, is granted without the need to present any guarantee, as it should instead be in the case of a classic loan. Another peculiarity of the loan of honor can be represented by the modalities of repayment of the money received on loan. In fact, in the loan of honor, the capital that the credit institution provides is composed as follows:
- 50% of the amount is disbursed
- the remaining 50% must instead be returned at a subsidized rate
This particularity makes the loan of honor very convenient for the youngest ones who can use this amount to finance their studies or the start of a new entrepreneurial adventure, knowing that they can only pay back half of what they have received and with very low interests.. The possibility of obtaining this type of loan without presenting any guarantee, in particular the paycheck, is also a feature designed to bring a very large and complex audience of young and very young people closer to the world of credit.
Who can apply for the loan of honor
All children aged between 18 and 35 can access the loan of honor. However, this is not the only characteristic that applicants must possess. At the time of the request for the loan of honor, in fact, it will be necessary to demonstrate that you also possess the following requirements:
- Italian citizenship (or alternatively residence for at least six months)
- for foreigners, regular residence permit
- unemployment or unemployment requirement (by the employment center)
- opening of a sole proprietorship based in Italy
- willingness to keep the business “alive” for at least 5 years
In particular, the last requirement provides that the recipient of the honor loan undertakes not to sign any permanent employment contract for the duration of the honor loan, so as to guarantee the newly created entrepreneurial activity any type of support and effort to thrive in the market. All the requirements obviously must be not only present at the time of the request for the honor loan but kept for the entire duration of the loan.
Who to apply for the loan of honor
Since the loan of honor can be used to finance different activities, there are also different subjects to whom it is necessary to contact to obtain one. If the loan is used to finance a post-graduate master’s degree or a course of study that can guarantee the boy a better future, then the request must be submitted to the banking and financial institutions that offer this service. You can also apply to the secretariat of your university because many faculties have specific agreements for banks. For an honor loan that finances the creation of micro-enterprises and self-employment, then you need to contact Invitalia.
This is the National Agency which deals with the development of entrepreneurship, including youth entrepreneurship, through special projects and ad hoc funds. Finally, honor loans are often provided directly by Municipalities and Regions that use part of their funds for these special projects dedicated to young people. In this case, specific offices are commissioned with sector experts to guide the boys not only to the request for the loan of honor but also to the opening of the company.
How to apply for the loan of honor
Also as regards the, the methods vary according to the type of activity that this loan will finance and the type of institution to which the application must be sent. In general, however, in recent years efforts have been made to make the procedures for applying for a loan of honor very streamlined and simple, so as to facilitate an ever increasing number of young people. For example, Invitalia requires that the entire procedure be carried out entirely online.
By registering on the platform it will be possible to submit the application by filling out an online form and attaching the required documents. Thanks to this system, the applicant can check at any time how his request proceeds, in real time. Even for banks and credit institutions that finance student loans, it is possible to carry out the files directly online on the institutes’ websites or request the support of the secretarial staff at their faculty. Finally, with the Municipality and the Region the procedure may be different according to the territory: it is always advisable to consult the institutional sites for more information.
How much can be obtained with the loan of honor
The amount that can be obtained with the honor loan is variable and much depends on the reasons for the request and much more. In general, if a student who wants to finance a master’s degree or a specific course of study to apply for the loan of honor, the maximum amount paid does not exceed 6 thousand USD which must be repaid from one to five years. If the loan of honor is required for the opening of a new professional company, then the amount is linked to the type of product sector in which the company moves. For example, if the loan is used to finance a micro-enterprise, the maximum amount that can be obtained is just over $ 121 thousand.
If, on the other hand, self-employment is to be financed, then the amount cannot exceed 25 thousand USD. In all three cases the money obtained is half of the non-refundable amount and half to be returned at a subsidized rate. Generally, to obtain an honor loan, it is necessary to calculate about 60 days of waiting, a period of time that includes the creation and presentation of the project but also its evaluation by a specific commission as well as the disbursement of money on a current account indicated by the applicant.