concessional loan (Q1309)
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Loans given for the purpose of addressing climate change, which are characterized with longer repayment terms and lower interest rates, offering more favourable terms than loans at market interest rates.
- concessional loans
- soft loan
- soft loans
- soft-loan
- soft-loans
- subsidised loan
- subsidised loans
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | concessional loan |
Loans given for the purpose of addressing climate change, which are characterized with longer repayment terms and lower interest rates, offering more favourable terms than loans at market interest rates. |
|
Statements
A concessional loan is offered on more favourable terms than loans at market interest rates. Such loans feature lower-than-market interest rates and/or extended repayment and grace periods, though they must still be repaid. An example includes concessional loan schemes for adaptation, like those supporting farmers affected by drought.