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Some government programs offer loans to help individuals, communities and businesses address various needs.

There are many reasons to seek a government loan rather than one from a private lender. Government loans typically have low interest rates and offer fixed or subsidized options, as well as deferred or flexible repayment plans. Some also offer partial loan forgiveness in exchange for public work. Note that governments may consider the worth of enterprises that private lenders would overlook.

Government loans provide access to low-cost capital needed to buy a home, pay for an education, fund a business and more. 

Educational loans are extremely popular. They fund research-focused areas as well as foreign-based endeavors. They’re considered risky because they depend on individuals and are rarely backed by physical collateral, like property in a home loan.

Most government loans involve financing home purchases, which are safer than educational loans because they’re backed by physical property.

Other loan types include business and industrial loans, loans for veterans, disaster relief loans, and agricultural, rural and farm service loans.

The application process for government loans is often slow since the demand for them is high. But government loans are often a win-win for borrowers and lenders when weighing the impacts and risks for both parties.

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