Answer Book question
A grant is money you do not repay, given for a purpose. A subsidy reduces the cost of something. usually a loan, an asset or an input. and is often paid to the bank or the supplier rather than to you. A loan scheme is a loan with easier terms: lower rate, less collateral, a guarantee. Most "government money" for business is the third kind with some of the second attached. Pure grants are rare and usually small.
A grant is money you do not repay, given for a purpose. A subsidy reduces the cost of something. usually a loan, an asset or an input. and is often paid to the bank or the supplier rather than to you. A loan scheme is a loan with easier terms: lower rate, less collateral, a guarantee. Most "government money" for business is the third kind with some of the second attached. Pure grants are rare and usually small.
A man hears "₹25 lakh PMEGP grant." PMEGP is a bank loan with a margin-money subsidy of a percentage of the project cost, credited to the loan account after three years if the unit is running. He must repay the rest with interest. Expecting a grant, he is disappointed; understanding a subsidised loan, he would have planned well.
Governments use three levers: give (grant), reduce (subsidy), and lend easier (loan scheme). Each has whether you may qualify, sequence and conditions. Subsidies are frequently "back-ended". paid after you have performed. which means you need the bank loan first.
Is repayment required? Who receives the money. you, the bank, the supplier? When is it paid. before, during, after? What conditions attach. running the unit, employment, inspection? What is the cap?
Reading a headline percentage as cash in hand.
Kerala Rising's scheme pages start with the "what kind of money is this" line for exactly this reason.
PMEGP-type structure on a ₹20 lakh project: bank loan ₹18 lakh, own margin ₹2 lakh, subsidy ₹5 lakh (illustrative) credited to the loan after the lock-in. Net repayable ₹13 lakh plus interest.
None. this is a vocabulary page.
Classify every scheme you hear about into one of the three Then read the sequence
Can I combine a bank loan and subsidy? What is back-ended subsidy? How do I find out what schemes I am eligible for?
Loans, grants & subsidies
Scheme notifications from Government of Kerala departments (Industries, Agriculture, Social Justice, Fisheries, Kudumbashree) · Central scheme guidelines (PMEGP, PM-FME, PMAY, PMJJBY/PMSBY, Atal Pension Yojana) · Kerala Rising Business Money Library. each scheme page carries its own checking date Rates, limits and whether you may qualify change. Confirm with the official source. Ask Kerala Rising: Tell us who you are (age, district, occupation, category) and what you want to do.
We will run the whether you may qualify check and tell you which schemes are real for you. and which are not. com Kerala Rising › Loans, grants & subsidies · Schemes 2
This page is general orientation, not personal insurance, investment, medical, legal, lending, tax, or professional advice. Rules, rates, benefits, and claim or application decisions can change. Confirm the current position with the named official source and use a licensed or qualified professional where your situation requires one. Kerala Rising does not decide whether you may qualify, approve claims, or promise an outcome.