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Things You Need to Know About Soft Loan

Things You Need to Know About Soft Loan

What Is a Soft Loan? A soft loan is a non-interest loan or a reduced interest rate. Soft loans have lenient conditions, such as lengthy grace periods in which only debt, service costs, and interest are unpaid. They are often called “soft financing” or “concessional funding,” They typically have longer amortization schedules than traditional banking loans (in some cases up to 50 years). Soft loans are mostly offered to developed nations by international development banks (e.g. Asian Development Fund), World…

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