Subsidized interest rate, also known as financial subsidy, is a government initiative to support businesses. That is, the enterprise can go to the bank to apply for a certain amount of loans within the scope of the policy. And part of the bank interest to be paid at maturity is financially supported by the local government and does not need to be repaid by the enterprise.
The government, in order to encourage enterprises to develop famous products and adopt advanced technology, pays all or part of the interest on loans to enterprises that use bank loans for specific purposes.
There are two main ways to subsidize the interest rate: first, the government allocates the interest rate subsidy funds directly to the beneficiary enterprises. The second is that the finance will allocate the subsidized interest funds to the lending bank, the lending bank to provide loans to enterprises with policy preferential interest rates, the beneficiary enterprises in accordance with the actual rate of interest incurred in the calculation and recognition of interest expenses.
Expanded Information:
Individuals who are eligible for small-scale guaranteed loans apply for the loan in general The process includes four processes: voluntary application, examination and recommendation, commitment guarantee and loan disbursement.
1. Voluntary application. Eligible applicants should apply in writing to the grass-roots employment platform of the place where their household or business is located (in some cases, they can directly apply to the local human resources and social security departments or microcredit guarantee institutions) 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 micro-guaranteed loan business at all levels of all types of financial institutions.
Baidu Encyclopedia-Subsidized Interest Rate
Baidu Encyclopedia-Financial Subsidized Interest Rate