These days when there is so much of hue and cry amongst private
loan agencies, each trying to downplay the merits and work of
the other, the loans offered by government remain immaculate and
selflessly benefiting the public.
Government loans are a cut above the rest in quite a few ways.
Firstly every private agency offering loan does it with the
purpose of making profits but in contrast to this government
loans are meant only for the welfare of public. Since government
is a body meant for the people, it does not seek any personal
gains. Unlike the private banks and other such loan agencies,
government also offers loans to those downtrodden people who can
hardly pay it back. Government loans not just a great help to
the destitute but also a big contribution in the smooth
functioning of the economy of the country.
Government loans are primarily of three kinds- Business Loans,
Loans for Home Buyers and Loans for Higher Education.
Since small businesses are quite important for the US economy,
in order to promote them and enhance their development,
government of America offers business loans to its citizens. All
those individuals who desire to kick-start their careers by
venturing into some business can materialize their dreams with
the help of government business loans. What more can be added to
the glory of government loans but that the present day eminent
brands such as Nike, Apple Computer, Compaq Computer etc. had
commenced with the aid of government loans only.
Government loans are immensely beneficial for those seeking a
shelter. Government gives home loans for legal purchase of any
big or small house. The rate of interest on these home loans is
deliberately less in comparison to loans taken from private
Since government of America seeks to have overall development of
the country, it provides financial assistance not only to
elderly people but also to children or students. Government
enables students to have a bright future by virtue of education
loans. These loans are a great help particularly to students who
do not come from affluent families. These loans provide a
wonderful opportunity to students to go for higher education
even in popular universities. The readily available government
loans for higher education not just help a student by sponsoring
his studies but are a boon for his family too. This is because
the parents are then released from the burden of hefty fees for
their child's higher studies. A student can pay back the loan
after completing his studies and acquiring a decent job.
The drawbacks of government loans are that these loans are
provided only to law-abiding citizens and for legal purposes.
Also a great deal of paper work is required to procure a
government loan. The government loans are not service at your
doorstep. So lot of physical labor is required to get a
government loan. Moreover government loans are not that readily
available as loans by private agencies. So it takes quite a few
days in applying for a government loan and actually getting it.
Yet the shortcomings of government loans can never dominate
their merits. At the end of the day it is the choice of the
customer to decide, which way to go.