Soft Loan
Loan with favorable terms: low/no interest, long repayment period, flexible conditions.
Real World
The UK government's Start Up Loans scheme offers new entrepreneurs loans at a fixed 6% interest rate with mentoring support — far below commercial bank rates for unproven businesses.
Exam Focus
Identify who provides soft loans (government, charities, development banks) and why — this signals understanding beyond just 'cheap borrowing'.
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