// definition
Interest subsidy
Third-party contribution to loan interest
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Short definition
Support under which a third party, such as the public budget, pays part of the interest on an eligible loan. Borrower costs fall according to the scheme’s base, rate and duration, while principal remains repayable. Support can decline with outstanding principal and end before the loan does.
risk atlas
Knowledge map
Intuition
The lender receives contractual interest, shared between the household and the budget under the programme’s terms.
Formula
illustrative monthly support = eligible opening principal × annual subsidy rate / 12