What is the difference between Grant and Loan?

Most of the time, when we receive a particular amount of money from the government, financial institutions, individuals, at times we will be required to pay the money back, and also, the money can just be given to you, and you will not need to pay it back. Examples of such are loan and grant. A grant is a particular amount of money you receive either from the government or private organizations or individuals in the form of entitlement. When a grant is given, you are not expected to pay it back.

A grant can be money or other things like property, gift. A loan, on the other hand, is a particular amount of money you receive from the government, financial institutions like bank, private organizations, but with the expectation that you are paying it back. Most times, loans come with interest. This means when you are repaying the loan, you will still pay some additional money

The main difference between a grant and a loan is the repayment system. When you are given a grant, this means that you do not need to pay back the money that you have received anymore. When you are given a loan, you need to figure out how to pay for the loan in due time.

A grant is usually provided by the government or other organizations that aim to help people reach their dreams like go to college for free and so much more. Loans can be given by different institutions as well. There are a lot of people who have been helped a lot by the grants and loans that they have received from various institutions.