What's the deal with subsidized loans, how do you calculate the repayment amount for 50% subsidized interest, and how do you calculate the interest when the loan amount is 2 million and is to be repai

What's the deal with subsidized loans, how do you calculate the repayment amount for 50% subsidized interest, and how do you calculate the interest when the loan amount is 2 million and is to be repaid in 1 year? Subsidized loans are loans from commercial banks where the interest is borne in full or in part by the government agency or civil society organization, and the borrower is only required to return the principal or a small portion of the interest in accordance with the agreement. 50% subsidized interest is equivalent to half of the interest subsidy, 2 million assuming that the annual interest rate of 6%, i.e., 120,000 interest, the government subsidy of 60,000 yuan.

Subsidized loans are generally policy loans, because the loan needs to pay interest to the bank, so there is this form of state-subsidized interest loans, most often seen in the three agricultural or student loans. This way is essentially the government or civil society organizations to encourage or support the borrower.

Subsidized loan application method Individuals eligible for small guaranteed loans, the general process of applying for a loan includes four steps: voluntary application, review and recommendation, commitment to guarantee and disbursement of loans:

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, review and recommendation. Human resources and social security departments for 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, eligible for commitment to guarantee procedures;

4, the issuance of loans. 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 microcredit guarantee institutions signed a cooperation agreement with the microcredit guarantee business at all levels of financial institutions.