A subsidy loan is a type of financial assistance provided by the government to support certain industries, businesses, or individuals. The loan is designed to lower the cost of borrowing for the recipient, making it easier for them to invest in projects that may not be feasible under normal lending conditions.
The subsidy can take the form of a direct payment, a tax credit, or a reduction in interest rates on the loan. The goal of a subsidy loan is to encourage investment in areas that are considered important for economic growth and development, such as renewable energy, infrastructure, or small businesses.
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