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Soft loan meaning

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(Querist)
12 May 2008 What is the meaning of Soft loan?
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Amit Sharma

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Amit Sharma (Expert)
12 May 2008 Dear Anil,

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, in addition to offering longer amortization schedules and lower interest rates than conventional bank loans.
Profile Image

Amit Sharma

Profile Image

Amit Sharma (Expert)
12 May 2008 Dear Anil,

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, in addition to offering longer amortization schedules and lower interest rates than conventional bank loans.
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Anil

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Anil (Querist)
12 May 2008 Thank you very much sir.
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