21 Explain the difference between a loan and a grant. Edit View Insert Format Tools Table square

A loan and a grant are both forms of financial aid, but they differ in several key ways. A loan is a sum of money that you borrow from a lender, such as a bank or a financial institution, with the agreement that you will repay the amount borrowed, plus interest, over a specified period of time. This means that you are responsible for repaying the loan, and you must make regular payments to the lender. On the other hand, a grant is a sum of money that you receive from a government, organization, or individual, which does not need to be repaid. Grants are typically awarded for specific purposes, such as for research, education, or a particular project. The key difference between a loan and a grant is that with a loan, you are borrowing money that you must repay, while with a grant, you are receiving money that does not need to be repaid.