A. What does a government subsidized loan mean?
Government-subsidized loans mean that the interest incurred by the lender on the loan is paid by the Treasury, and the lender does not pay the interest
Secondly, what is the meaning of subsidized interest subsidy?
Subsidized interest subsidy, also known as fiscal subsidy, is a government initiative to support enterprises. The company can go to the bank to apply for a certain amount of loan within the policy scope. 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.
Three, what is a subsidized loan
The good thing about a subsidized loan is that the interest rate is low and free of miscellaneous fees, the bad thing about a subsidized loan is that the application process is complicated and there is a fixed time for application, and the threshold of its application is also relatively high. Subsidized loans are a special bank loan used for a specified purpose and subsidized by the state or the bank for its interest expenses. A subsidized loan is a preferential loan that allows you to receive a subsidy on interest, but the process of applying for a subsidized loan is complicated and it takes considerable effort to apply for it. The subsidized loan is to encourage the construction of a certain cause or project, which can be fully subsidized or partially subsidized. The principle of whoever arranges the subsidy is generally applied to the interest spread of the loan. For subsidized loans arranged by the state, the central government subsidizes; for subsidized loans agreed by the People's Bank of China (PBOC), the PBOC subsidizes; and for subsidized loans by specialized banks, the specialized banks are responsible for their own interest rates. In addition low-income families who use provident fund loans to buy affordable housing will be given a loan interest subsidy, equivalent to the low interest rate on top of the preferential, equal to the low-income households to pay back less interest than the original.
Four, what does government subsidized loan mean?
Loans.
Subsidized loans, refers to borrowers from commercial banks to obtain loans from the interest by the relevant government agencies or civil society organizations in full or in part to be in accordance with the agreement to return the principal or a small portion of the interest.
This way is essentially the government or civil society organizations to borrow.