Types Of Govt Loans

If you are looking for a loan at reasonable rates of interest, you should be aware that there are various types of government loans that are offered. Let’s have a basic understanding of loans to begin with. A loan is a debt in which the borrower receives a certain amount of money known as the principal, from the lender. The repayment of this principal takes place in installments over a pre- decided period of time. An interest of a certain rate may be applicable on the loan. Loans are commonly offered by banks and the government.

Not everyone can afford to take loan schemes that the private banks offer because of the high rates of interest or other such conditions. The government offers various kinds of loans to such people in need. There are different types of government loans for education and for starting one’s own business.


Any community can and will prosper if its members are educated. Educated here does not mean sending children to school, regardless of its quality and without all round development. It refers to giving every child an equal opportunity and healthy atmosphere to learn and grow. With education becoming highly privatized in the higher educational levels, it is growing out of access to a lot of those who wish to study but do not have the means to do so. Another factor barring many from getting a quality higher education is its increasing costs. In order to solve this problem, the government, among many other programs, has also introduced the Comprehensive Educational Loan Scheme. These types of government loans are valid for all the courses in the universities and colleges in India as well as abroad.


To manage to start your own business, one needs great ideas, courage, conviction and very importantly, money. Does not matter if it’s large scale or small, no business can be started till the time you have money to invest in its start up. In order to sustain it and keep the business growing to reap more benefits, one needs more and more capital support. Though, many might have the dreams and the most profitable ideas, some lag behind only due to the lack of monetary strength.

To allow for such endeavors to take shape, the government has made arrangements and introduced a plethora of schemes to aid those who wish to start their own small business. This process functions through setting up of institutions and banks which in turn offer these types of government loans. Small Industries Development Organization and National Small Industries Corporation Ltd. are the two institutions through which many types of government loans and schemes are implemented.

Some of these loans are also specific to recipients, for example small business loans that are offered to women and those offered to educated unemployed to empower them to start their own ventures.

The splendid endeavor of the government to offer various types of government loans for various matters at agreeable terms to all those in need is a crucial step in furthering the nation’s progress.