Returnable Grant- Pros, Performance and Possible Application
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In the aftermath of the pandemic lockdowns, India’s small businesses continue to suffer devastating consequences. Given the distrust among banks, they are being pushed to rely on informal credit sources. Meanwhile, the RG experiment, started in 2020, is emerging as a possible solution to this challenge.
What is returnable grant?
- Returnable grant or RG is a new blended finance instrument, leveraging the best of a loan and a grant, developed under the Revive Initiative of Samhita Social Ventures and Collective Good Foundation, in 2020.
- Like in case of a loan, in RG too there is an expectation of repayment.
- However, unlike in a loan, RG doesn’t carry interest nor does it require a collateral.
- Like in case of a grant, the
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