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The subsidized loans are loans granted at advantageous conditions as regards the interest rate , guarantees or repayment terms . Normally, when you contact a bank or another financial institution, you agree on an interest rate to be paid on the loaned capital and a duration within which the loan must be repaid in installments, which may be monthly, bimonthly or less. Frequently. Furthermore, the bank often asks for documents such as the latest pay slips and the unique 730 model to guarantee the solvency of the applicant, which must prove to be reliable. However, not everyone can present these healthy economic titles or support the normal conditions of a loan: this is why there are subsidized loans.
The facility can cover various aspects of the loan
First of all, an advantageous interest rate can be provided, lower than that which would be required under normal conditions. Indeed, some categories of interesting loans are called “zero interest”, as they do not require the recognition of an interest to the lender. On the other hand, as regards the methods of repayment, particularly flexible conditions can be established in the event of the debtor’s financial difficulties. Finally, another form of facilitation refers to guarantees: some loans require alternative forms of guarantees to pay, such as a mortgage, or that a third party acts as guarantor.
Precisely with regard to guarantees, a particular type of subsidized loans is distinguished, those with public guarantees
Often, a public body, such as the Region, the State or the European Union, through specific financing programs, can intervene guaranteeing loans with social and economic purposes. These are forms of support for social categories in difficulty or that we intend to support, guaranteeing the repayment of the loan and perhaps allowing us to obtain a more advantageous interest rate.
Many economic sectors benefit from this type of operation, but here we point out two of the most frequent cases. The first concerns loans to young students , who can thus finance, for example, their studies off-site. Another case is that of supporting businesses, especially small and medium-sized enterprises (SMEs). Soft loans with public guarantees allow entrepreneurs to receive funding to launch new economic activities or to invest in their own business, to improve their results.