Here’s the main difference: A grant is a set amount of money that is awarded to an applicant without repayment, while a loan needs to be paid back with interest. Both types of funding can be obtained for personal or business use. Grants are more limited than loans in that there are fewer providers and fewer eligible/approved applicants.

What is the difference between a grant and a loan? The primary difference between a grant and a loan is that a loan must be repaid eventually, while a grant is essentially a gift of money. Grants and loans also tend to come from different sources. Grants are most often distributed by the government or foundations and non-profit organizations.

Grant is a form of financial assistance to an individual or organization that does not need to be repaid. Loan is money that is lent to a borrower with the expectation of repayment. Grants are awarded based on need, while loans require a credit check and may require collateral.

The main difference between grants and loans is the intent of the lending or granting party. Grantors are more concerned about how the money will be spent, while lenders are concerned about the financial stability of the borrower. Grants are often reserved for certain types of business owners or those in certain areas or industries.

Unlike loans, grants do not come with the expectation of being repaid. While a loan is a sum of money that someone has borrowed, a grant is practically a gift. Banks or private lenders do not usually offer grants. Governments, corporations, or trusts provide grant opportunities.