Difference Between Grant, Subsidy And Loan

Grant, Subsidy And Loan

Grant, subsidy and loan are popular term used in Agriculture. We probably had heard, he has got grant, other has got subsidy and likewise.

But, Many of us are still confused what is the difference in grant, subsidy and loan Agriculture.

 In this blog we have provided clear concept on grant, subsidy and loan which will erase all your confusion.

Grant, Subsidy, Loan, agriculture
Grant, Subsidy And Loan

So, let’s get started….

Grant

We have heard the term like “For-granted“. This means provided for free.

☑️In agriculture grant means the amount of money that is given to farmer or any other agricultural entrepreneur to uplift and develop their agricultural business. We don’t have to return this money. 

Simply, grant is the amount of money given to farmers for free.

To get grant, you need to fulfill certain criteria. The money you got in grant in agriculture cannot be invested in other sectors.

Subsidy

Subsidy is most famous among these three terms. Many farmers get subsidy in their agricultural works.

☑️Subsidy can defined as the amount of money or discount that is given to farmers or agricultural entrepreneurs inorder to run their agricultural business or to buy any agricultural equipments.

In subsidy, some amount of financial help is done by government and remaining mount should be invested by farmer of agricultural entrepreneur.

It is like person-government partnership but you don’t need to return that money recieved in subsidy.

It is like (70-30)%, (50-50)%. Front is for governmental subsidy and other is investment of farmers.


Note:- Some governments not only gives subsidy but also gives discount on the money which is to invested by farmers. So, it will encourage people to do agricultural works.

Loan

☑️Loan is the amount of money that is taken from banks or other related offices which can help us or assit to grow our agricultural business.

The money we receive in loan should be returned back after certain time. Until that time, we must pay the interest of that money monthly or yearly.

Taking loan has risk. But, the people who don’t receive subsidy or grant are bound to take loan because they don’t have money.

Conclusion 

We can conclude that, Grant subsidy and loan are the three ways to run our business in agriculture. This three ways have encouraged people to do farming and agricultural sector is growing well.

✔️Government should provide more grant and subsidy to people(farmers) who actually needs that help. Otherwise, some other people in power get that money despite they aren’t doing any agricultural works.

✔️Similarly, government should decrease the interest rate of agricultural loans to encourage farmers.

This is all information on grant, subsidy and loan.

If you have any suggestion, do let us know in comments below.

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