Ever wondered just how government loans work? You wouldn’t be the first person to ask this! Investopedia has published an article with all the ins and outs of how government loans work, and it’s a very thorough and helpful resource. We’ll go over some of the highlights here, and then you can find the link to the entire article at the end of the post.
As you probably already know, the government has many different departments with the purpose of supporting individuals, businesses and communities. Part of their service in these areas includes supplying loans. This can be especially helpful when it is difficult to get a loan from the private sector.
These loans are quite different from private loans. Government loans often come with discounted interest rates, which is helpful in saving the borrower money. Private loans not only have higher interest rates, but they can be very dependent on one’s credit history, often requiring some kind of cosigner.
There are many different types of government loans. Some of the more common ones include Agriculture, rural and farm service loans, business and industrial loans, educational loans, housing and urban development loans, loans for veterans, and disaster relief loans.
You can read the Investopedia article in its entirety here: https://www.investopedia.com/articles/investing/100714/introduction-government-loans.asp