Subsidized financing

Subsidized financing

Funding provided by a government or other entity that is available at a below-market interest rate.

Subsidized Financing

A loan or other form of financing that a government provides directly or guarantees. Subsidized financing is available at a lower interest rate because the government does not need to make a profit and can better afford the risk of loss. Subsidized financing often is offered to lower income people, for example, to encourage home ownership. See also: Co-signer.