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></u><br>  
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<u>Related Links:</u>  
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= Further Information<br/> =
  
[http://practicalaction.org/?id=powering_poverty_reduction_2#Case%203:%20Micro-hydro%20revolving%20fund%20in%20Peru 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])<br>  
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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/>
  
[http://www.ccre.com.cn/English/BG.htm#ISDR International support for renewables in China]
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= References<br/> =
  
[[Category:Financing, promotion schemes and subsidies]]
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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