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soft loan

British  

noun

  1. a loan on which interest is not charged, such as a loan made to an undeveloped country

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

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Banks stand to benefit from elevated trading volumes and strong investment-banking revenue based on deal activity, which both help to make up for soft loan growth.

From The Wall Street Journal May 26, 2026

Nepal has also decided to accept $659 million in aid from the United States and about $150 million in soft loan from the World Bank, Sharma said.

From Reuters Apr. 16, 2022

If you're lending to nieces, nephews or godchildren, simply gifting the money or making a soft loan should be straightforward, but it may still be worth taking legal advice, says Ray Boulger.

From BBC Aug. 30, 2016

"We are working on details of the plan and could ask the government for help in terms of financial support and a soft loan," she said.

From Reuters Nov. 1, 2011

A common—and perfectly legal—device is the "soft loan," in which the donor gives, in effect, the difference between what he paid for some stock and its higher value on the current market.

From Time Magazine Archive

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