Subsidized financing

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Subsidized financing

Funding provided by a government or other entity that is available at a below-market interest rate.

Subsidized Financing

A loan or other form of financing that a government provides directly or guarantees. Subsidized financing is available at a lower interest rate because the government does not need to make a profit and can better afford the risk of loss. Subsidized financing often is offered to lower income people, for example, to encourage home ownership. See also: Co-signer.
References in periodicals archive ?
Currently 2015 models are being offered with subsidized finance rates as dealers clear out stocks in anticipation of the all-new 2016 model.
Study concludes that existing SME support (most of which is unbeknownst to the majority of SMEs) of subsidized finance facilities and other support programs remain inadequate to meet their sustainability objectives.
The reports produce a best-possible price-scenario - the dealer invoice price less any factory holdbacks, non-advertised factory-to-dealer and factory to consumer cash incentives, customer rebates, and subsidized finance and lease rate programs.