Governments of various nations are providing loans to their citizens to fulfill their various requirements such as agriculture, disaster management, educational, business and housing. Mostly government loans do not require any down payment but there are always certain parameters to be fulfilled to become eligible to avail government loans. Governments provide loans on service oriented basis and naturally will have limited or no profit. Government loans always have advantage of possibility of waiver of loan in case of poor financial condition of the borrower. For example, agriculture loans granted by governments mostly waived based on natural calamities, climatic condition, poor harvest, monsoon failure or draught etc. Governments normally offer longer repayment period with low rate of interest as it is aimed at the welfare of the society. Educational loans granted by governments are aimed at welfare of future generations.



Student / Educational loans granted by Governments solve the problem of higher interest on educational loans, insisting on security of loan offered by private lenders. Thus governments offer low cost manageable loans. Government educational loans are provided for tuition fees, books, research work, overseas study etc. Students on their part have to provide their correct identity, personal information etc prescribed by the government. Governments authorize various institutions / banks to provide loans to the public on their behalf and the institutions in turn fix certain norms and conditions to become eligible to avail the loan. Amidst numerous profit making private institutions, government loans remain immaculate and selflessly serving the public. As a representative of the public, Governments do not charge the public and have no personal gains. Governments’ loans help to strike the balance in economy at the same time helping the downtrodden and destitute among the society. Governments’ also offer business loans viz., small scale industry loan, self employment loans etc. through Industrial Departments. Government also grants home loans at affordable interest rates. The draw back in government loans are inordinate delay, limited amount etc.

Tough government loans are very popular; it has the limitation of small amount of loan, not for everybody etc. Government student loans are reliable option as most of the students are unable to bear the heavy expenditure on education. Government student loans are backed by the Government and the interest rate is either now or no interest. The students who are willing to apply for this loan must root their application thro’ their educational institutions.. Governments also grant loans to agricultural sector for farming activities, cattle breeding, cottage industries etc. These loans are not profit oriented and only aimed at the welfare of the society and improving the standard of living of the people. Government agricultural loans always carry the risk of natural calamities. Farmers may not able to make the repayment in the event of flood, draught etc. Normally no collateral is demanded on granting agricultural loans. Government agricultural loans if attached with some payment protection like crop insurance etc., then government may have some safety on funding agricultural sector. To sum up, Government loans are aimed at improving the economy on the whole and welfare of the public.