How is a grant different from a loan?

No need of repayment

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

No need of interest

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Borrowing money

No worries! We‘ve got your back. Try BYJU‘S free classes today!

No need of collateral

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D No need of collateral
The government has various sources of income for its development activities. One of them is grants. A grant is like a donation for a particular cause. But, unlike a loan, there is no need to repay the grant. So, it does not require any payment of interest or the submitting of collateral.

Suggest Corrections

Similar questions

Which of the following is considered a capital receipt?

1. Loan recoveries

2. Provident funds deposits

3. Grants

Join BYJU'S Learning Program