What is the soft loans, loan

According to its loans funds into soft loans and commercial loans two categories.

The so-called soft loans, is the National Development Bank as a policy bank, can be carried out by the government or State-Owned Company loan financing platform, its loans allow for key construction projects determined by the state capital or equity investment, this is the biggest difference between hard and soft loans and loans of commercial banks. It low interest rates, the repayment period long.
1 below market rate loans
2 multinational development banks and the world bank to provide loans to developing countries. Soft loans in repayment schedule than bank loans, lower interest rate and long outside, also has a grace period, during this period, only interest or service charges

Soft loans in repayment schedule than bank loans, lower interest rate and long outside, also has a grace period, during this period, only pay interest rates or fees

Soft loan is the National Development Bank, with its registered capital and Chinese financial arrangements of the managing constructive funds and special construction funds and funds, in the long-term preferential issuance of loans. Including equity loans and special loan.

Soft loans loan amount is generally not more than 50% of project capital gold. The loan period of 25 years, including 5 year grace period. Loan interest rates than other commercial bank interest rates downward float of 10%. Loan is the main way of cooperation with all levels of government, establish the corresponding options for financing platform and loans, and by the financial departments at all levels of project implementation repayment guarantee.

"Soft" loans mode is, first by CDB loans to local government financing platform of local government financing platform, is the so-called around the small and medium-sized enterprise service center and other government backed agencies, local financing platform CDB's loans, choose a number of strong, dedicated service to the small and medium-sized enterprise loan guarantees in the Guarantee Corporation Province, the use of loan funds for its capital, its capital increase, thereby gaining greater financing guarantee limit, then the bank and Guarantee Corporation, enterprise as collateral to obtain bank Guarantee Corporation, the "loan", or other financial institution loans.

Soft loan is open country policy loans, the loan funds can be used as capital projects, the commercial banks are not such a business.

The so-called hard loans is the National Development Bank (including using borrowed money in foreign bonds and the use of foreign capital) loans, including loans for capital construction and technical transformation loans. "Hard -" is the international bank for reconstruction and development loans, as the dollar unit of account.