The loan of honor is a personal loan regulated by legislative decree 185/2000. It provides non-refundable grants and subsidized rate loans for those who want to start a business in the form of a company or self-employment or for deserving students (law 390/1991).
Main characteristics of the loan of honor
Here are the main features of the honor loan:
- more favorable refund conditions ;
- simplified access to capital, as the applicant need not necessarily have demonstrable income;
- the presence of a guarantor or a co-obligation is not required.
How the honor loan works
The loan of honor provides for the disbursement of loans for the following categories:
- Micro-enterprises : the maximum eligible investments amount to $ 129,114 (excluding VAT). For investment expenses, a non-repayable contribution of approximately 50% and a subsidized loan for the remaining 50% with an interest rate at 30% of the reference rate in force at the time of the signing of the loan contract. The repayment must be made in seven years at most by means of deferred constant quarterly installments;
- Franchising : a 50% non-refundable grant and a loan at a subsidized rate for the remaining half to be repaid in a maximum of seven years;
- Self -employment: the total eligible investment amounts to $ 25,823 (excluding VAT), while the subsidized rate loan for investments cannot exceed the amount of $ 15,494. The non-refundable contribution for the management costs of the first year cannot exceed 5,164.57 USD;
- Students : the loan may vary according to the bank and the duration of the course of study. Usually it is around 5 / 6,000 USD per year. The loan has no interest while the repayment usually starts about two years after completing the studies, with a duration ranging from one to 15 years.
As for work activities, the requirements include:
- the age of majority;
- the status of unoccupied on the date of submission of the application;
- Italian residence on 1st January 2000 or for at least six months on the date of submission of the application.
In the case of micro – enterprises and franchises, at least the numerical half of the shareholders who holds at least half of the share capital or quotas must possess the aforementioned requirements.
Students who want to access the honor loan must be:
- resident in Italy;
- enrolled in one of the Italian universities;
- in possession of the income and merit requirements established by law 390/1991.
How to apply for the loan of honor
The methods of request vary from work activities to students, therefore:
- Micro-enterprises, franchising, self-employment : the loan of honor is managed by Self -employed Bank, that is, the National Agency for the Attraction of Investments and Business Development. It is possible to submit the application online, specifying the purpose of the request. When the loans of honor are disbursed by other subjects, such as the Regions or the Municipalities, the application must be forwarded to the latter bodies according to the modalities foreseen by the announcement;
- Students : the honor loan is based on agreements between universities and banks. To submit questions, it is necessary to contact the university secretariat where you can also inquire about which banks have an agreement.