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What do you mean by subvention in lending loans?

Updated: 8/17/2019
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Q: What do you mean by subvention in lending loans?
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What is interest subvention scheme in India7?

The interest subvention scheme in India is a government policy that provides subsidized interest rates on loans for specific sectors like agriculture, exports, and small businesses. The government reimburses a portion of the interest cost to the lending institutions, which allows them to offer loans at lower interest rates to borrowers in these sectors. This scheme aims to promote economic growth and support targeted sectors by reducing the cost of borrowing.


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