INTERVIEW FOR CSE 2019 All ForumIAS members selected for CSE 2019 Personality Test must submit their details and DAF and register below to receive further instructions and guidance from ForumIAS. Click here to register now
INTERVIEW 2020 CHANNEL ForumIAS Channel for Interview Preparation is now Active! Please join the channel by clicking here
Soft Loan is that loan which is given at below market rate. This is usually done to encourage development projects in underdeveloped and developing countries. Example can be the loan or line of credit of 1 billion USD given by India to Bangladesh last year.
Among the world bank agencies, not all loans are soft loans. IDA, International Development Agency, gives soft loans at very nominal interest rates or even 0 % interest rates.
IMF does not give soft loan at such. It only gives risky emergency loan to countries - not for development purpose but to meet BOP crisis.
And if ida is giving at 0%, won't all players borrow from ida ???
Please throw some light on this
IBRD gives hard loans,,, when IDA gives soft loans there is a requirement of some sort of borrowing from IBRD compulsorily,,,, further, it is not that there is so much money that all countries can borrow --- no wonder that is where all ur credit ratings, fiscal deficit and other indicators of macroeconomy (that is how safe the money is), plus soft power of India, plus thanks to Gates etc that loans are given to India
One query related to loans but not related with this topic 1)I have read lot of times that indian banks are short of cashn n for basel3norms they will hav to have more capital. Why? I dnt get this why banks r having short of capital ? Why they ask to fin ministry to give them more capital? 2) what is restructuring of loan? Read in one article related to BAD LOANS/NPR. How can it reduce NPR? In the same article one thing is also mentioned that one xyz bank is selling its certain percentage of NPR to some abc ASSETS RESTRICTING COMPANY. ... matlab???????
few doubts - What is soft loan? Does WORLD Bank/IMF give soft loan or hard loan?
When a loan is offered with a low or no interest rate, then it is called a soft loan. This type of loan is generally provided by the MNC banks to developing nations, which may not be able to acquire a loan at present rates. In India, soft loans are provided by the State Bank of India for setting up agricultural business centres. This loan is available at almost all SBI IFSC. More ventures which are funded by the soft loan scheme are: - Soil, water testing labs - Agricultural surveillance services - Seed testing labs - Agri consultancy services - units for value addition.
For more information you can visit the Soft loan by SBI website.
A soft loan is a type of loan that is granted either with no interest or negligible rates that are way below the prevailing market interest rates. These loans are generally granted as a form of "aid" to people/ organizations that are not able to borrow money at normal market rates. A good example of soft loans would be loans granted by the World Bank or other multinational banks to developing countries for uplifting their infrastructure or improving their economic conditions. The repayment period of these loans is also much long than that of personal loans or any other types of loans. In fact, the repayment option for these loans includes "interest holidays" leading to further extension in the time period than what is assigned. As a result, one observes that soft loans are not provided by your usual banks or financial institutes. In 95% of the cases, these loans are provided by government aid agencies, that can afford to extend the repayment period.
We are a secret self-moderated community for Civil Services preparation. Feel free to join, start a discussion, answer a question or just to say Thank you.Just dont spread the word ;)Sign in or join with Facebook or Google
ForumIAS is India’s leading Online website for UPSC IAS Exam Online Preparation and guidance. At ForumIAS, we have a dream. Our dream is to make its members achieve their IAS dream. Today thousands of aspirants have joined the elite services such as IAS, IPS, IFS, IRS and other central and state services with the right inputs provided by ForumIAS. Take a look at our IAS Toppers
Free IAS Online Preparation Initiatives by ForumIAS
Current affairs is the most important part of UPSC IAS exam. ForumIAS provides a detailed analysis of important news articles through its 9PM brief. In current affairs reading Editorials Online needs an in-depth focus and hence we provide a separate analysis of daily editorials which is not found in any other website. Click the following link to access these free preparation initiatives in Portal . ForumIAS also provides compilations and Free downloads for UPSC IAS preparation
Knowing is never enough for IAS exam. An IAS aspirant must be engaged in answer writing practice to do well in UPSC IAS Mains Exam. ForumIAS has launched a Mains Marathon initiative for IAS mains Online answer writing. Click here to access UPSC Mains Marathon initiative . For Daily Must Read Newspaper articles, Visit Must Read Newspaper page here. Must Read Newspaper is an Initiative by Team ForumIAS to provide Current Affairs links to the Must Read Articles of The Day from Newspaper.
UPSC Syllabus
The most important part of UPSC IAS exam is its syllabus and there is a need to take an in-depth look at it. Click here to view the UPSC IAS Prelims syllabus. Visit UPSC IAS syllabus page here
UPSC IAS Study Material
ForumIAS is the repository of many toppers’ Online study materials for GS Mains and Optional subjects. The most unique thing about it is that they are handwritten by toppers themselves. Click here for UPSC sample notes
Interview Preparation for IAS
Interview is the last and crucial stage for becoming an IAS officer. How to prepare for it? We provide a solution. ForumIAS is the only online website where quality IAS interview preparations happen. Online Current affairs from an interview perspective are extensively discussed and specific preparation based on candidate’s profile and hobbies can be done. Please visit this link for UPSC Interview Preparation
At ForumIAS we have an exclusive Online page to read the UPSC Interview Transcripts
Indian Forest Service (IFoS)
IFoS is one of the most sought after All India Service. ForumIAS provides the right approach to excel in this exam through their toppers who have shared their success mantras and their study materials in an elaborate manner.
About Indian Administrative Service (IAS)
IAS is considered as one of the best jobs on earth. IAS officers hold the most important positions in Central and State Governments and in Public Sector Undertakings (PSUs). They also represent India in international organizations. They take the most important decisions in the administration of Government policies and development programs.
About Indian Police Service (IPS)
IPS officers occupy higher positions in the State Police Departments, Central Armed Police Forces and Intelligence Agencies. Their most important responsibilities are maintenance of Law and Order and internal security.
About Indian Foreign Service (IFS)
IFS officers serve as diplomats in international missions and embassies of India around the world and in prominent international organizations like United Nations (UN), World Bank, and IMF. They work to promote India’s interests from a bilateral and a global perspective.
The Study portal is a single point of online IAS preparation through its several initiatives like the Must Read News Articles, the 9 PM Brief, the Mains Marathon. If you are preparing for IAS exam online, ForumIAS is the place to go. ForumIAS is proud of ForumIAS Alumni in UPSC Service who have secured top Ranks in past 5 years.
Visit Us At
ForumIAS - Offline Guidance Centre
ForumIAS Academy, 1st Floor, IAPL House, 19, Pusa Road, Opposite Metro Pillar 95-96, Karol Bagh, New Delhi-110005,
View Google Map Location
Comments
Among the world bank agencies, not all loans are soft loans. IDA, International Development Agency, gives soft loans at very nominal interest rates or even 0 % interest rates.
IMF does not give soft loan at such. It only gives risky emergency loan to countries - not for development purpose but to meet BOP crisis.
World bank!!!!
And if ida is giving at 0%, won't all players borrow from ida ???
Please throw some light on this
further, it is not that there is so much money that all countries can borrow --- no wonder that is where all ur credit ratings, fiscal deficit and other indicators of macroeconomy (that is how safe the money is), plus soft power of India, plus thanks to Gates etc that loans are given to India
1)I have read lot of times that indian banks are short of cashn n for basel3norms they will hav to have more capital. Why? I dnt get this why banks r having short of capital ? Why they ask to fin ministry to give them more capital?
2) what is restructuring of loan? Read in one article related to BAD LOANS/NPR. How can it reduce NPR? In the same article one thing is also mentioned that one xyz bank is selling its certain percentage of NPR to some abc ASSETS RESTRICTING COMPANY. ...
matlab???????
@federer @trying_tobawesm @KVA
@ravindra
In India, soft loans are provided by the State Bank of India for setting up agricultural business centres.
This loan is available at almost all SBI IFSC.
More ventures which are funded by the soft loan scheme are:
- Soil, water testing labs
- Agricultural surveillance services
- Seed testing labs
- Agri consultancy services
- units for value addition.
For more information you can visit the Soft loan by SBI website.
A good example of soft loans would be loans granted by the World Bank or other multinational banks to developing countries for uplifting their infrastructure or improving their economic conditions. The repayment period of these loans is also much long than that of personal loans or any other types of loans. In fact, the repayment option for these loans includes "interest holidays" leading to further extension in the time period than what is assigned. As a result, one observes that soft loans are not provided by your usual banks or financial institutes. In 95% of the cases, these loans are provided by government aid agencies, that can afford to extend the repayment period.