Low interest loan
A low-interest loan , also known as a soft loan , is a loan with an interest rate that is below the usual market value. This form of financing is also known as soft financing . Often, low-interest loans are associated with further concessions for the borrower, such as long deferrals or interest payments. Low-interest loans are usually granted by governments for projects that are deemed worthwhile. The World Bank and other development institutions grant low-interest loans to developing countries .
Other considerations may also be associated with the favorable loan interest. An example of this is the loan from the Export-Import Bank of the People's Republic of China , which in October 2004 granted Angola a loan of two billion US dollars for the construction of infrastructure . In return, the Angolan government issued various offshore oil usage agreements to China.
Individual evidence
- ↑ http://www.businessdictionary.com/definition/soft-loan.html
- ↑ http://www.iags.org/chinainafrica.pdf