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Soft loan meaning

This query is : Resolved 

12 May 2008 What is the meaning of Soft loan?

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.

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.

12 May 2008 Thank you very much sir.


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