What is a discount subsidy?

Discount subsidy, also known as financial discount, is an initiative of the government to support enterprises. That is, enterprises can apply for a certain amount of loans from banks within the scope of policies. Part of the bank interest due is financially supported by the local government and does not need to be repaid by the enterprise.

In order to encourage enterprises to develop brand-name products and adopt advanced technology, the government pays all or part of the loan interest to enterprises that use bank loans for certain purposes.

There are two main ways of financial discount: first, the financial department directly allocates the discount funds to the beneficiary enterprises. Second, the finance will allocate the discount interest funds to the loan banks, which will provide loans to enterprises at preferential interest rates, and the beneficiary enterprises will calculate and confirm the interest expenses at the actual interest rate.

Extended data:

For individuals who meet the requirements of small secured loans, the general process of applying for loans includes four processes: voluntary application, review and recommendation, commitment to guarantee and loan issuance.

1, voluntary application. Eligible applicants submit written applications (some of which can be directly submitted to local human resources and social security departments or microfinance guarantee institutions) to the grassroots employment platform where their household registration is located or where they operate, and submit relevant materials, certificates or relevant certificates.

2. Review and recommend. Human resources and social security departments conduct qualification examination, and those who pass the examination are recommended to microfinance guarantee institutions. A guarantee institution refers to a guarantee institution entrusted to operate a small loan guarantee fund in accordance with relevant regulations.

3. Promise. The guarantee institution shall review the applicant's projects in accordance with the relevant provisions, and handle the guarantee procedures if they meet the requirements.

4. Issue loans. The loan applicant promised by the guarantee institution shall sign the contract and issue the loan after being examined and approved by the handling bank in accordance with relevant regulations. The handling bank refers to all kinds of financial institutions at all levels that sign cooperation agreements with microfinance guarantee institutions to carry out microfinance business.

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