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Government Grants and Loans - What's the Difference
Every government in the world tries to support the citizens of its country; thus, grants and other financial and social advantages are designed in order to help those people experiencing problems. Countries such as USA, Australia and UK are only some examples of countries having an elaborate system of government grants and loans offered to their people as a support for their studies, business, research and much more.
Usually, almost all the citizens of a country are entitled to apply for a government grant or a loan. However, there are some differences between a government grant and a loan and before deciding to apply for one or the other, here is some things you should know about these two types of government financial support.
The Government Grants
These are easily accessible if you are a citizen of the country and if you meet some conditions required by the government of the country. In order to receive the grant you have applied for you have to fully meet the requirements stipulated by the government.
Small business owners, women, students, teachers, artists and scientists in a word everyone can apply for a government grant they can use further on in their personal interest, since these grants are offered for a wide range of categories.
The wonderful thing about grants is that you don't have to refund the money you are given and no security deposits are required to be granted the amount of money you have applied for. All the information you need before deciding which of the grant to apply for can be found on the internet, where various websites can be of real help.
The Government Loans
Government loans are different for the government grants and at the same time it is harder to get a loan than a grant from the government. Unlike government grants, which are given directly to the people applying for it, the government loan is given to a commercial bank. The person looking for such a loan must contact the bank and if it meets some specific requirements, it can get the loan at low interest rates.
The government has total control of the process involved in taking a loan and the period of refunding it. Getting a government loan involves a lot of paper work you will have to fill. You will also have to give a full account of your personal and business accounts.
These are the difference between a government grant and a government loan, the biggest of them being the fact that you have to pay back the loan, but not the grant. No matter how tempting it sounds getting free money from the government, always take some time to look for serious company to help you apply for the grant you need.