Why do we need loans, since we have subsidies?

[Kasabus]

There are times that we really need money, and there's no option and the best solution is to have a loan,and i must at some point loans are lifesaver.At first we can say that it was a big help,you can have it instantly once you complete the requirements,but i must say it will bury you down.All the interests and everything only those banks will benifit.

[1714010981]

1714010981

[webtricks]

The loans, is fraud.

If I want to start a hotel. I budgeted $1,000,000 for it. I got $520,000 as capital. I am seeking for rest. Tell me why at all government offer me subsidy if I am starting a proifitable venture. The only way I got is a loan of $480,000
Subsidies are burden on Government's budget. They don't fall from sky. More burden leads to more deficit, weaker nation. More of loan leads to ecomomic development till ROI is more than rate of interest!!

[Qartersa]

The statement is completely wrong and there is no point in discussing it really. Loans are money that someone gets from which he promises to payback when the time comes, it may be with or without interest. On the other hand a subsidy is something that would be given for free to help someone or some sector for some particular purpose. What's to discuss?

[bitbunnny]

These are two completely different categories not related to each other. And I disagree with the claim that everyone can get subsidies, the rules are not equal in all countries. And loans are not scames, it's legitimate financial category and people who misusew loans with intention not to pay it back are different story.

[boyshx]

Here in my country the inflation rate is somewhere between 300 and 400% every year, it's almost hyperinflation and bank loans still charge interest rates of like 29% a year. Getting a loan, or a mortgage or any kind of credit in this country must be the best bussiness ever

[xuan87]

I don't think everyone is eligible for subsidies, subsidies is for the one that can't affords the daily basic things and when we need money in emergency we need to loan money the government will only give you subsidies in a certain time, and in subsidies we have limit, so I think subsidies and loan is two different thing

[marcoman22]

I dont think every body can get subsidies. subsidy is an aid given by the government to the needy people who are not even in a stage to help themselves. Loan is which is got by people who are in need of money and which should be paid back.In most cases, loan is given based on collateral security provided by the loan appliers, whereas in case of subsidy no security is needed.

[Gotottack]

I don't think everyone is eligible for subsidies, subsidies is for the one that can't affords the daily basic things and when we need money in emergency we need to loan money the government will only give you subsidies in a certain time, and in subsidies we have limit, so I think subsidies and loan is two different thing

Yes because that is why it is called subsidies! It is a subsidy from the government, meaning it is a temporary help. You don't actually need to pay it back. It is something given for free and the government is giving it to them for a reason, that would be that so that they can help that sector or persons.

[icecube45]

I dont think every body can get subsidies. subsidy is an aid given by the government to the needy people who are not even in a stage to help themselves. Loan is which is got by people who are in need of money and which should be paid back.In most cases, loan is given based on collateral security provided by the loan appliers, whereas in case of subsidy no security is needed.

Yes you are right loan is not included in the subsidies. But I want a little confirmed that subsidies should not be for the poor, it may be more appropriate is for people in need because it in a broader sense. Loans are basically must be returned to the maturity that has been determined, and usually there is no guarantee or interest, while subsidies are given voluntarily and there is no guarantee or interest (usually coming from the government).

Answering the question from OP of why we need a loan, namely because there is an urgent need that must are met immediately so that we do loan. And must be returned with the specified time period.

[lordquanta]

I dont think every body can get subsidies. subsidy is an aid given by the government to the needy people who are not even in a stage to help themselves. Loan is which is got by people who are in need of money and which should be paid back.In most cases, loan is given based on collateral security provided by the loan appliers, whereas in case of subsidy no security is needed.

Yes you are right loan is not included in the subsidies. But I want a little confirmed that subsidies should not be for the poor, it may be more appropriate is for people in need because it in a broader sense. Loans are basically must be returned to the maturity that has been determined, and usually there is no guarantee or interest, while subsidies are given voluntarily and there is no guarantee or interest (usually coming from the government).

Answering the question from OP of why we need a loan, namely because there is an urgent need that must are met immediately so that we do loan. And must be returned with the specified time period.

Subsidies are not reserved for poor only. In fact largest receiver of subsidies are large corporates/business. Whenever any authority(local/state/national) want to implement any new project in their region then they offer large amount of subsidies to the businesses/corporates to establish there plants. These subsidies are in form of no tax or lowest possible tax,  low value infrastructure that includes land, electricity, water, man power, and so on. 
Ordinary well to do people are also eligible for the subsidies if goverment wants to implement certain policy. Like in some countries provident fund(retirement fund) installments are half paid by govt and half by employee. Just an example.  In govt want to get certain crops then they would give subsidies For farmers too.
So subsidies is available for all. You just need to know the applicable scheme.

Lending Loan is something banks love to do. (Lending loan is in fact most loved by the loansharks though). They get major business from that. I don't think why loan is required needs to be explained. loan or subsidies have their own place in economy.

[Wandering Soul~]

Loans and subsidies are different . Subsidy is a voluntary financial assistance usually by the government so payback is not expected and not everyone can get it, Usually the low income get this or if the government wanted to lend a hand to some business or something . On the other hand Loans are easy to get in fact almost everyone has already experienced this and of course borrowers are expected to pay with or without an interest .

Loans are just like fire, If you use right it can be your friend but if not, It will be your enemy . If you're loaning like crazy especially without a valid reason it will result in loans stacking up making it harder to pay . As far as I know people who provide loans these days won't give you a loan unless you prove them that you will be able to pay them . People who mostly do that are your friends .

[jacafbiz]

These are two different things servicing different purposes, I would even argue that what we don't need is subsidy because only big businesses benefited from subsidies money, they inflate the price and accumulate wealth, but anyone can go for loan if the terms and conditions is right.

[jaberwock]

Subsidies are a gift given by the state to some people that produce something

Loans you have to pay back, in theory, and you can use the money as you wish.

Subsidies are bad because they transfer the money of tax payers to people that could be more efficient

[diegz]

Subsidies are a gift given by the state to some people that produce something

Loans you have to pay back, in theory, and you can use the money as you wish.

Subsidies are bad because they transfer the money of tax payers to people that could be more efficient

Subsidies from medicine and hospitalization, food, and subsidies for the old citizens and PWD are just fine for me. They are all helpful, besides those that receive subsidy are also a tax payers including us. Subsidies about living, like giving allowance to the jobless is what I don't like, it is like letting them know that it's just fine to be jobless and be a liability of the government.

Loans are good as long as it is not used as a tool to take  advantage.

[icecube45]

I dont think every body can get subsidies. subsidy is an aid given by the government to the needy people who are not even in a stage to help themselves. Loan is which is got by people who are in need of money and which should be paid back.In most cases, loan is given based on collateral security provided by the loan appliers, whereas in case of subsidy no security is needed.

Yes you are right loan is not included in the subsidies. But I want a little confirmed that subsidies should not be for the poor, it may be more appropriate is for people in need because it in a broader sense. Loans are basically must be returned to the maturity that has been determined, and usually there is no guarantee or interest, while subsidies are given voluntarily and there is no guarantee or interest (usually coming from the government).

Answering the question from OP of why we need a loan, namely because there is an urgent need that must are met immediately so that we do loan. And must be returned with the specified time period.

Subsidies are not reserved for poor only. In fact largest receiver of subsidies are large corporates/business. Whenever any authority(local/state/national) want to implement any new project in their region then they offer large amount of subsidies to the businesses/corporates to establish there plants. These subsidies are in form of no tax or lowest possible tax,  low value infrastructure that includes land, electricity, water, man power, and so on.  
Ordinary well to do people are also eligible for the subsidies if goverment wants to implement certain policy. Like in some countries provident fund(retirement fund) installments are half paid by govt and half by employee. Just an example.  In govt want to get certain crops then they would give subsidies For farmers too.
So subsidies is available for all. You just need to know the applicable scheme.

Lending Loan is something banks love to do. (Lending loan is in fact most loved by the loansharks though). They get major business from that. I don't think why loan is required needs to be explained. loan or subsidies have their own place in economy.

Yups you are absolutely right, you explained very detailed and comprehensive. That's why I say subsidies is not only for the poor but for people in need (such as for corporate, business, etc.). Between subsidies and loans does have a different place in the economy and each has a different system.

[Xester]

If all citizens will be given subsidies then what will happen to the goverment projects and programs and other welfare services if national fund will be subsidized to the people. If there will be subsidy it will be only the selected few and it will be given to those who are in need, to the poorest of the poor and victims of calamities.

[Mr. Big]

If all citizens will be given subsidies then what will happen to the goverment projects and programs and other welfare services if national fund will be subsidized to the people. If there will be subsidy it will be only the selected few and it will be given to those who are in need, to the poorest of the poor and victims of calamities.

Once you are a tax paying citizen of a country you are entitled to all that the government has to offer... But government won't just give you a subsidy if you are not in need, as you've mention, but you are entitled to it when you need it... Sometimes those who can afford to buy their foods during calamity just want to take advantage of what is given by the government even if they don't need it... 

[BitcoinPC]

As i know, loan and subsidies both are different, you know everyone can get loans, but not everyone can get subsidies.
If you talking about the loan than should know you must to pay it, and it depend on your income, and subsidies is total different thing, because it is not loan.

[Vikash kumar]

Whenever there is some emergency cases which is not hadle with our income then in this situation we need to take loan from any entity or banks which is taken by any person but subsidies can not taken by ordinary person. It is only gained by any jobber.

[HarringtonStark]

Because sometimes we need funds that are not readily available such as when we need to purchase a new house or a new car. Subsidies just are not enough.