Subsidized interest loan is a special bank loan used for a specified purpose and subsidized by the state or bank for its interest expenses.
It is a preferential loan to encourage the construction of a certain undertaking or project. The interest on the loan can be fully or partially subsidized. The principle of whoever arranges and subsidizes the interest spread on the loan is generally applied.
Subsidized loans arranged by the state are subsidized by the central government; low-interest loans agreed to by the People's Bank of China (PBOC) are subsidized by the PBOC; and low-interest loans by specialized banks are the responsibility of the specialized banks themselves.
Expanded Information:
Subsidized Loan Application Methods:
The general process of applying for a loan for individuals who are eligible for a micro-guaranteed loan consists of four steps, namely, voluntary application, examination and recommendation, commitment to guarantee and disbursement of the loan.
1. Voluntary application. Eligible applicants, to the household or business location of the grass-roots employment platform (some can be directly to the local human resources and social security departments or microcredit guarantee institutions) to submit a written application, and submit relevant information, documents or relevant certificates.
2. Examination and recommendation. The human resources and social security departments to carry out qualification examination, the examination of qualified recommended to the microcredit guarantee institutions. Guarantee institutions are those entrusted with the operation of the microcredit guarantee fund in accordance with the relevant provisions.
3. Commitment guarantee. Guarantee institutions in accordance with the relevant provisions of the project review of the applicant, qualified for the commitment guarantee procedures.
4. Loan issuance. Guarantee institutions committed to guarantee the borrower applicant, the bank in accordance with the relevant provisions of the approval after the signing of the contract, the issuance of loans. The bank refers to the cooperation agreement signed with the microfinance guarantee institution to carry out the micro-guaranteed loan business at all levels of financial institutions.
Baidu Encyclopedia-Subsidized Loans