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Interest Subvention Meaning

Interest subvention means the subsidy on the interest. You know when any loan is taken, interest is paid. This is also called the cost of loan. If Govt. wants to help to any industry, Govt. minister can allow this subsidy in the form of interest subvention. With this, industry will grow because after subsidy, businessmen of that industry will not have to pay full interest on taken loan.

For example

Latest finance news is that Aman Chadhha, Chairman of The Engineering Export Promotion Council (EEPC) is demanding 4% interest subvention for engineering export in foreign countries. It means, he is demanding, when any exporter of engineering goods will take loan, that exporter should not give full interest. Suppose, interest on loan is 15%. Exporter is ready to pay 11% and rest should pay by Govt. He is telling its reason to face global competition. 

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  1. It is great job by prof vinod kumar to help the new and old student to learn the accounting in very logic and simple way.....

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  2. Lucid and well explained. Thank you

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Accounting Education: Interest Subvention Meaning
Interest Subvention Meaning
Accounting Education
https://www.svtuition.org/2012/03/interest-subvention-meaning.html
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