Soft Loans

Overview

A soft loan is by definition:

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

• Micro-hydro revolving fund in Peru (see also Chapter 4 in The provision of access through the expansion of micro hydro and mini-grids)
• International support for renewables in China
• Portal:Financing and Funding