A Subsidy Loan is a type of loan where a portion of the interest or principal is supported or covered by a government, financial institution, or other organization. These loans are designed to make credit more affordable for specific groups, such as farmers, students, entrepreneurs, or low-income households, by reducing their financial burden. Subsidy loans often target sectors or individuals that contribute to social and economic development, like agriculture, education, or small-scale businesses.
Varies based on the subsidized scheme (e.g., fixed amounts for educational loans, higher limits for business loans).
Flexible tenure options ranging from short-term to long-term.
Full or partial coverage of interest by the government or supporting body.
Promoting specific sectors like agriculture, education, housing, or renewable energy.
The Street Vendor loan interest is charged 25% to 35% for Rural Area and 15% to 25% fro Urban Areas.