What Does Non-Repayable Loan Mean?


Have you ever heard of non-repayable loans? Well, you need to know that maybe it’s the most popular type of loan. In essence, these are subsidized loans that are granted without the obligation to repay .


If you intend to have more details on this type of loan , on who offers it and on how to obtain it, do not miss the continuation of this paper and come to find out more details if you intend to take a loan without a fee!


How does the non-repayable loan work?

How does the non-repayable loan work?Where do they get it?


When a non- repayable loan is obtained, this means that the applicant is not required to repay the capital received , or at least a part of it, but above all is not subject to repayment in the form of installments + interest.

On closer inspection, therefore, this is not a real loan, it is rather an investment . This is why in most cases these loans are institutions and public bodies.

Non-repayable loans are a very useful initiative because they are provided in order to allow those who receive them to start their own business or their own business, obtaining a capital in a practically free manner. This promotes economic development and self-employment.

Non-repayable credit is granted under many different types. It all depends on who the loan applicant is who is disbursed by a specific institution.

This type of loan is therefore particularly suitable for young entrepreneurs and for those who want to open a business. The funds are mostly of European, state or regional origin.

Now that you understand how non-repayable loans work, let’s see how you can get one and how you can apply for it.

How do you get them?

How do you get them?

If you want to apply for a non -repayable loan, you would be well advised to be an investor or a young entrepreneur in any case because this type of loan is generally granted to those who intend to start a start-up with particular regard to young and female entrepreneurship.

This does not mean that there may also be bids for companies that are created in disadvantaged areas in terms of competitiveness. For example, we can imagine companies looking to be born in southern Italy. The intent is always to promote the development of the local economy.


Then it also happens that large companies are financed, but only if the investment sector is strategic in terms of public interest.

Where do they get it?


We have already mentioned above that normally those who offer non-repayable loans are a large institution or public body. We have the European , state and regional public bodies that can be interested in providing them, always with the aim of creating entrepreneurial activities in the territory.

To obtain the financing, you must always stay informed about the new tenders dedicated to particular categories of entrepreneurs. If you meet the requirements, you can apply for funding . To participate, you must complete the application and provide the relevant business plan that must be well structured and convincing.

If you get a non -repayable loan, you can also think about increasing the capital at your disposal even more as they can be combined with other forms of benefit that do not come from the same call.

Start-ups that manage to emerge thanks to the funds obtained in the future can also participate in further tenders, provided they meet the necessary requirements.

What are the prerequisites?


Unfortunately this is a question that is difficult to answer because each call has a situation of its own. Most tenders are made available by Invitalia, which is the national agency that deals with business development and investments.

The generic procedure requires that you complete an online application once registered on the website and then you can attach your business plan . Furthermore, it is possible to provide other indications on one’s own activity and on the objectives to be pursued.

The next step is the analysis of questions by assessors who begin to evaluate in chronological order. Later you could also be called to interview to verify the potential and solidity of the corporate structure that you had imagined.

In short, this kind of initiative has many advantages and very few weaknesses .

Could it be interesting for you:

  • Loan for young people
  • European grant funding


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