Difference between revisions of "Soft Loans"

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= Definition  =
 
  
A ''soft loan'' is:
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= Overview<br/> =
  
1. A loan with a below-market rate of interest. <br>2. Loans made by multinational development banks and the World Bank to developing countries. Typically, soft loans have extended grace periods in which only interest or service charges are due.&nbsp;They also&nbsp;offer longer amortization schedules and lower interest rates than conventional bank loans.  
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<u>A soft loan is by definition<ref name="http://www.investopedia.com/terms/s/softloan.asp#axzz23insxeUK">http://www.investopedia.com/terms/s/softloan.asp#axzz23insxeUK</ref>:</u>
  
Definition by [http://www.investopedia.com/terms/s/softloan.asp ''Investopedia'']
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#A loan with a below-market rate of interest.
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#Loans made by multinational development banks and the World Bank to developing countries. Typically, soft loans have extended grace periods in which only interest or service charges are due. They also offer longer amortization schedules and lower interest rates than conventional bank loans.
  
<u>Related Links:</u>  
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<br/>
  
[http://www.ec3wd.com/cd3wd_40/JF/JF_OTHER/SMALL/BARNETT1.PDF The Provision of Access through the Expansion of Micro Hydro and Mini-grids]
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= Further Information<br/> =
  
[http://www.ccre.com.cn/English/BG.htm#ISDR International Support for the Support of Renewables in China]  
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*[http://practicalaction.org/?id=powering_poverty_reduction_2#Case_3:_Micro-hydro_revolving_fund_in_Peru Micro-hydro revolving fund in Peru] (see also Chapter 4 in [http://www.ec3wd.com/cd3wd_40/JF/JF_OTHER/SMALL/BARNETT1.PDF The provision of access through the expansion of micro hydro and mini-grids])
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*[http://www.ccre.com.cn/English/BG.htm#ISDR International support for renewables in China]
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*[[Portal:Financing_and_Funding|Portal:Financing and Funding]]<br/>
  
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= References<br/> =
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<references />
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[[Category:Financing_and_Funding]]

Latest revision as of 12:29, 19 May 2015

Overview

A soft loan is by definition[1]:

  1. A loan with a below-market rate of interest.
  2. Loans made by multinational development banks and the World Bank to developing countries. Typically, soft loans have extended grace periods in which only interest or service charges are due. They also offer longer amortization schedules and lower interest rates than conventional bank loans.


Further Information


References