Government loans have been created by the government for the welfare of the general public who are in need of financial assistance. These loans are disbursed by the government agencies and are not done for profitable purpose. The private loan companies create as well as disburse loans and take hefty interest rates during the repayment. On the contrary, government loans come at very low interest rates and are meant to cover only the operational costs.
The competition among the private companies is fiercest when it comes to loans and everyone is trying to outwit the other for luring in borrowers from various sources. This is where government loans edges past the others because they have been designed for the welfare of people and not profits. The government loans are provided to people who cannot produce any security or guarantee of returning the money. Not only the downtrodden and destitute get equal opportunity to lead a decent life but also meet the necessary expenses on a daily basis. Three basic government loans include home loans, business loans and higher education loans.
He US government recognizes the importance of small businesses so in order to uphold their financial interests and promote their development, government loans in the form of business loans are provided to the business owners. The government loans are available even for the entrepreneurs who want to start their own business and create more employment opportunities. There is a rich history of government loans that established big enterprises in the US like Apple, Compaq, Nike etc.
The government loans are used by many people in the US to build a home of their own. These loans have been structured in a manner that would take into consideration the building costs of a home and the interests rates too are less compared to the conventional home loans available from private finance agencies. Purchasing a home becomes a lot easier if a person avails the government loans.
Students and elderly people are also provided government loans for educational and rehabilitation purpose. Educational loans from the government are available to the students who want to go for higher studies. Government loans are provided to individuals who maintain an impeccable legal record and the paperwork for such loans is a bit longer. Getting a government loan is a bit hectic and involves a lot of legwork. These loans are still considered to be the best when it comes to meeting long and short term expenses.