The difference between subsidy and loan is that subsidy

The correct answer is: - is not refundable while a loan is refundable Subsidy and loan are both forms of financial assistance, but they differ in several ways. A subsidy is a grant or financial assistance given by the government or an organization to support a particular industry, business, or individual. Subsidies do not have to be repaid and are not considered as debt. On the other hand, a loan is a sum of money that is borrowed and must be repaid with interest. Loans often require collateral or a guarantee of repayment. The main difference between a subsidy and a loan is that a subsidy is not refundable, while a loan is.