Loans of Honor 2017: for Students and Young People

The loan of honor is a loan introduced by law no. 608 of 1996 and revised with the legislative decree n. 185 of 2000. The aim was to facilitate the creation of small businesses both individually and individually. After a period of crisis due to the lack of funds to be allocated to the provision of honor loans, Legislative Decree no. 185 of 2000 decided to allocate new resources.

In general, the honor loan is a personal loan characterized by more favorable repayment terms and simplified access to capital, since the applicant does not necessarily have to have demonstrable income. Furthermore, the presence of a guarantor or a co-obligation is not required.

Who can apply for honor loans?

Who can apply for honor loans?

Honor loans are granted to two types of customers:

  • to those who want to start a ‘business activity of small size in the form of partnerships, in the fields of production of goods or services or a franchise;
  • young people to help them in their university, postgraduate and / or professional training courses. The loan of honor provides for a portion of capital granted as a non-repayable loan and another disbursed in the form of a loan to be repaid at a subsidized rate.

What are the requirements for obtaining honor loans?

What are the requirements for obtaining honor loans?

Here are the requirements for applying for an honor loan:

  • be of age;
  • be unemployed when applying for funding;
  • have been resident in Italy for at least six months on the date of submission of the application.

These are the generic requirements, since each specific case, which we will illustrate shortly, needs specific conditions.

The loan application must be completed online and sent – in paper form and complete with attachments – to Astro Finance, which will undertake to reply within a maximum of six months. If yes, the applicants are required to participate in the training seminars coordinated by the regional companies of Astro Finance and carry out the activity financed for at least five years.

Loan of honor for self-employment

Loan of honor for self-employment

Those who want to start their own business and start a sole proprietorship in the commercial field or in the production of goods and services can benefit from the facilities provided for self-employment. In this case, the loans cannot exceed $ 25,823 and are considered eligible for:

  • equipment, plants, machinery and connections;
  • multi-year intangible assets;
  • property renovation (10% of eligible investments).

The concessions include a non-refundable contribution (designed for initial investments and first-year management costs) and a subsidized rate loan (equal to 30% of the reference rate at the time of signing the contract) to be repaid in five years and up to $ 15,000.

Loan of honor for the micro enterprise

If, on the other hand, the objective is to start a small business in the sectors of production of goods or services, it is possible to request the facilities provided for by the law for micro-enterprises.

Eligible loans can reach up to $ 129,114 and, as for honor loans for self-employment, are intended for: equipment, plants, machinery, intangible assets with multi-year utility and the renovation of buildings (10% of eligible investments).

The concessions also apply to the costs of:

  • raw materials, consumables, semi-finished and finished products as well as other internal costs of the production process;
  • utilities and rental fees for real estate;
  • Financial charges;
  • insurance guarantees on financed assets;
  • provision of services.

Also in this case the concessions provide for a non-refundable contribution, which for the first year can reach up to $ 12,000 and a loan at a subsidized rate for starting up and managing the business.

Loan of honor for the franchise

Loan of honor for the franchise

The loan of honor is also indicated for individuals and companies (of persons or of capital), who are in the process of starting a franchise business. A non -repayable grant and a subsidized rate mortgage and a subsidized rate loan are envisaged.

The amount for each concession is not predefined as it takes into account the amount of investments and management costs as well as the characteristics of the loan (in particular, duration, amount and interest rates applied) that you want to request.

Student loans

Student loans

The loans of honor reserved for students allow you to benefit, for a variable period depending on the course of study, from a line of credit in a current account intended to finance a training course and the costs connected to it, such as accommodation.

The loan is granted by credit institutions in agreement with universities and provides subsidized rates and a repayment plan spread over the years. Beyond personal or family income, to access the loan you need some specific requirements, such as:

  • regular enrollment in the course;
  • an average of marks above a certain threshold.

Compared to other forms of financing, the honor loan has advantages since, for example, the repayment will take place only after having used the entire sum disbursed, that is, once the course of studies is finished.

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