A lot of people nowadays experience the difficulty of securing the financial assistance they need in order to achieve something, such as education, housing, or even the basic necessities of a person. It is a good thing that free government grants are provided to help people who are experiencing these kinds of difficulties. While free government grants are available, some people still opt to apply for loans. What then is the difference between government grants and loans?
Government grants can be considered financial assistance from the government that you need not repay in monetary values. Indeed, you don’t have to repay the government with monetary values, but the government expects good results from you or your project, if there is any, in exchange for the assistance they gave. There are certain sets of stipulations you need to observe while applying for the government grant you most desired, and even when the grant has been awarded to you. If you don’t abide by the rules, the government can involve you in some legal matters.
Loans, on the other hand, are not free. You borrow a certain amount of money from an organization, such as banks or lending institutions, and you will use the money for whatever it is you intend to use it for. You are then expected to pay the amount, usually with the interest, for a few weeks or months. While loans are not free, some people still apply for them because, unlike government grants, loans are much easier to apply for. A lot of banks and lending institutions accept loan applications because it is in those loans that they get their profits.
Because government grants are free, the government makes sure that the awarded people or organizations are well-deserving of the financial assistance they can give. As a consequence, government grants are not easily obtained.