What is the loan of honor
University student loans are loans dedicated to those who want to support a course of study, but do not have the necessary resources. Introduced in our country in the mid-90s with law no. 608/1996 the loan of honor is now a widespread product in Italy.
Both university students and aspiring entrepreneurs are eligible for honor loans. In the first case, these are loans designed to facilitate students in the second, products to support the start-up and development of companies in individual or corporate form.
But how do college student honor loans work? Usually the loan of honor is a product that provides for the granting of a sum to be repaid after a few months. Unlike what happens with traditional personal loans, in fact, honor loans provide a bridging period between the date of granting the money and the beginning of the repayment.
The length of this period varies from loan to loan and is usually related to the course of study you want to finance. During the bridging period, the borrower is not required to repay principal or interest. At the end of this period, the beneficiary begins to repay the loan with an amortization plan in monthly installments.
As regards interest, the rate applied is usually subsidized. In some cases there is also a quota of capital granted as a non-refundable.
But who can get college student honor loans? The requirements for obtaining such a loan vary depending on what is set by the bank that provides the loan. In some cases, it is the university of reference that establishes the requirements to be met. Usually these are merit requirements, but objective requirements can also be envisaged.
Let’s move on to the question of eligible expenses. College student honor loans always allow you to bear the costs of school fees and the purchase of textbooks.
In some cases it is also possible to insert among the eligible expenses those for the stay for off-site students. And some lenders include expenses for travel and food among the eligible expenses. In any case, it is always advisable to agree on the eligible expenses with the bank that grants the loan.
The best loans for young students 2017
Now that we have reviewed the conditions of university student honor loans, let’s see what are the most interesting offers of the moment. Before analyzing the offers, however, it is necessary to remember that student honor loans can be disbursed both by credit institutions and by public bodies. in the latter case, however, these are rather rare products.
On the other hand, many banks and financial companies reserve a place in their offer for honor loans for university students. But let’s move on to the most advantageous products among those currently active.
Let’s start by talking about Fine Bank’s offer. The bank note offers two loans designed to meet the needs of young university students. The first is Fine Bank ad Honorem while the second is called Credit Express Master.
Fine Bank ad Honorem it is an honor loan for the financing of a university course. Access to credit is based on academic results and the student has the opportunity to spend the money granted without having to repay the sums for a period ranging from 1 to 3 years. Among the costs that can be financed we find both the cost of enrollment at the university and those of residence.
Once this period has elapsed, the student has two options. In fact, he can choose to start repaying the loan or take advantage of a bridging period. Hypothesis, the second, which allows you to postpone the repayment of the loan for another two years.
During this period, the student will then have the opportunity to enter the world of work and therefore find a job that allows him to repay the loan. At the end of the bridging period, the student will have to start repaying both the capital and the accrued interest, thus opening a real personal loan. The amortization plan can extend for a maximum of 15 years.
Fine Bank financing for masters
As already mentioned, the Fine Bank offer also includes a loan to finance the costs related to masters and specialization courses in general. The product is called Credit Express Master and allows access to sums up to a maximum of 15 thousand USD. The amortization plan can extend for a maximum of 96 months (minimum period 18 months).
The beneficiary can also choose to take advantage of a pre – amortization period. During which only interest will be repaid. Pre-amortization can extend for a maximum of 3 years.
The loan of honor of Lite Lender Company
Finally, we find our in-depth analysis on university student loans with the offer of Lite Lender Company. The product in question is Capital Lender, a loan for students who are already enrolled in university and have achieved good results.
Capital Lender allows you to finance both university and post-graduate studies. The sum is disbursed with various tranches every six months. The amounts granted can remain in the student’s availability for a maximum of 5 years.
At the end of this period, the beneficiary can start repaying the loan or request the activation of a bridging period. This can last up to 2 years and does not involve the payment of any sum. Once the bridging period is over, however, the repayment of the loan will be inevitable.
Payment can be made in a single solution or with a repayment plan in monthly installments, which can extend for a maximum of 30 years.