Providing low-interest loans
- Granting low interest loans
Description
Providing low-interest loans involves offering financial resources at below-market interest rates to individuals, businesses, or communities who lack access to affordable credit. This strategy aims to stimulate economic development, support entrepreneurship, and alleviate poverty by reducing the burden of high borrowing costs. By improving access to capital, low-interest loans help address barriers to investment, enable essential purchases or business expansion, and promote financial inclusion for underserved or vulnerable populations.
Implementation
The International Development Association (IDA) is a World bank programme which lends funds at very low interest rates (0.5% over 30-40 years) to the world's poorest countries. IDA disbursed $5 billion in such "soft" loans to poor countries in the 1996 financial year. IDA programmes are funded for three-year periods by 33 donor countries. Sixty-nine countries, home to 80 percent of the world's people living in absolute poverty, are eligible for IDA loans; IDA's largest borrowers are India, China and Vietnam. The countries that receive IDA loans have an average income of $400.
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Problem
Value
SDG
Metadata
Database
Global strategies
Type
(C) Cross-sectoral strategies
Subject
- Commerce » Credit
- Law » Arbitration
Content quality
Yet to rate
Language
English
1A4N
J0968
DOCID
12009680
D7NID
193761
Editing link
Official link
Last update
Dec 3, 2024