The subsidized loan is a type of financing that allows those who need to obtain a capital, but cannot request it for various reasons, to have a positive response from the bank. In general, the subsidized loan allows those who have a low income, an atypical work contract, are unemployed or are part of the category of students, to access consumer credit to start their own business, to pay for their own education, coping with situations of economic difficulty.
Law 215/92 provides the guidelines for this type of subsidized loan, highlighting requirements, recipients and areas of expertise ranging from industry to craftsmanship, from the start of commercial activities or services for tourism. The subsidized loans can be requested by all categories of workers or not who are excluded from access to consumer credit for their working and social condition and for the lack of guarantees such as for example a university student who is looking for a soft loan to enroll in a postgraduate course.
The subsidized loan: DOCUMENTATION
With the request of a subsidized loan it is possible to obtain more easily the acceptance of one’s loan request by showing a particular documentation and other types of guarantees based on the following scheme:
- the State or Region of belonging as guarantor;
- lower interest rate or interest-free financing;
- custom repayment schedule.
The subsidized loan: THE INTERESTED RATE
In the soft loan solution it is also possible to obtain a completely interest-free loan that allows you to receive a capital with a repayment plan that covers only the sum obtained. This type of soft loan is known by the denomination of interest-rate-reduced loan .
The interest-reduced rate loan can be requested by individuals or companies wishing to start, build and expand their business: the guarantees are non-existent if you do not have a fund in the bank, a fixed income different from what may be the monthly salary or other source of income (if you are married, your spouse’s income). In this regard, the subsidized loan, especially in the rate-lowered interest rate solution, is the ideal solution for those who would otherwise be excluded from consumer credit.
The subsidized loan: FINANCING FOR SMALL AND MEDIUM-SIZED ENTERPRISES
Nowadays, each banking institution proposes its facilitated loan solution with financial products that adapt to the needs of different categories of workers or private individuals or companies that wish to carry out a project or simply incur sudden expenses, purchase their first home or cope to the need for liquidity but have difficulty in accepting the request for a loan that completely covers the capital sum they need.
In the case of a subsidized loan for small or medium-sized enterprises , the financed capital is disbursed for the start-up of the entrepreneurial activity or its extension and it is usually the loan solutions proposed by the State and Regions in areas subject to economic crisis or depression with the goal of creating employment opportunities for young people or disadvantaged people. This type of financing makes it possible to obtain the necessary capital without exhibiting a permanent employment contract – which cannot be obtained, given the search for the launch of an activity – repayable with reduced or zero interest rates .
The subsidized loan: FINANCING FOR YOUNG PEOPLE AND FEMALE ENTREPRENEURS
A second type of financing is the subsidized loan for young people who decide to start a business, even as private individuals; an interesting proposal is the subsidized loans to start female entrepreneurship. Access to the subsidized loan for the start-up of female entrepreneurship is reserved to:
- cooperative societies;
- individual companies managed by women;
- partnerships of 60% women;
- joint-stock companies with at least 2/3 shares due to women.
The same possibilities are given to the category of housewives who can apply for a loan to support small family expenses such as the purchase of a household appliance, pay for their children’s university fees or for a trip, a wedding. The disbursement of capital is characterized by facilitations in the ease of granting, for the reduction or elimination of the interest rate on repayment but also for the possibility of exhibiting documentation that does not imply an employment contract but only the guarantees of third parties that allow to protect the provider from the risk of insolvency.