Payday Loan: Features, Operation and How to Get It
The loan of payday is a personal loan, characterized by more favorable repayment terms to allow you, as an applicant, to access in an easier and more immediate way the amount of money you need to crown your project. What makes it unique? Unlike other forms of loan, that of payday can be requested even if you do not have a demonstrable income and without the presence of a guarantor or even a co-signer.
All the characteristics of the loan of payday are regulated by the Legislative Decree 185/2000 which provides grants and subsidized loans, aimed at those interested in undertaking a self-employment activity or starting a new company.
Payday Loan Types
- Students : if you fall into the category of deserving students, there are several credit institutions that provide the loan of payday that will cover all the costs of training. It is not possible to quantify the amount in a precise manner, since they vary according to the creditor body. However, the amount paid is around roughly € 5,000 per year. There are no interests and the start of reimbursement takes place two years after the conclusion of the course of study. The duration of the reimbursement varies from a minimum of 1 year to a maximum of 15.
- Micro enterprises : this is a 50% solution that is a non-repayable loan and the other half is a subsidized loan. The maximum amount that can be financed is 129,114 euros plus VAT. With regard to the repayment schedule, the maximum duration is 7 years and the payment of every single installment takes place every 3 months. Franchising also falls into the micro-business category. In both cases, this form of financing is particularly useful for combating unemployment.
- Self-employed workers : have you decided to start your own business? The maximum amount allowed is € 23,823 plus VAT (€ 25,823, VAT excluded). However, consider that you can not exceed the amount of 15,494 euros for subsidized financing. For the grant contribution relating to management fees, it can not exceed the limit of € 5,164.57 in the first year.
If you obtain this loan on advantageous terms, you can use it to finance plants, machinery or other intangible assets. Also in this case, one part is non-repayable and another is at a subsidized rate.
Operation and How to get it
Summing up, the operation of the loan of payday is all about a time margin, where as a customer you can focus first on your business or on your studies, then think only later to repay the amount inexpensively provided by the credit institution you have turned to.
– If you are a university student or enrolled in a faculty of an Italian university, the payday loan covers specific agreements between banks and universities and allows you to complete your studies, covering the costs of training, of books, food and lodging. Talking about it in general in this article would not make sense. Therefore, we advise you to contact the secretariat of your university directly. In addition to the general conditions, you can also get to know the affiliated banks.
– For micro businesses, for self-employed workers and for franchising, Invibank will manage the process of the payday loan. What’s this? The National Agency for the Attraction of Investments and Business Development. You must submit your request online, indicating the reasons for the request and completing the application form, present on the Invitalia website.
In this case, to request the loan of payday, you must be of age at the time of submitting the “unoccupied” application and be resident in Italy for at least 6 months. If you intend to start a micro-business or open a franchise, at least 50% of the shareholders holding the share capital or the shares must comply with the aforementioned rules.
– In the circumstance in which the loans of payday were provided by the Region, by the Municipality or by other subjects, you must send your application to the competent body, naturally paying maximum attention to the methods indicated in the call for proposals.
To conclude, if you were a worthy student or a creative talent looking for extra cash to finance your new business, the loan of payday is the form of financing that is right for you.