The term 'non-repayable' describes a financial or economic transaction where the recipient of funds or assets is not obligated to return or reimburse the original provider. This often involves grants, gifts, or forgiveness of a debt. The key characteristic is the absence of a requirement for repayment, distinguishing it from loans or investments that demand future return of the principal, sometimes plus interest. non-repayable funds typically aim to support charitable causes, economic development, or provide aid, and they're usually allocated based on specific criteria set by the donor or granting organization, with the intention of lasting impact rather than financial return.
Non-repayable meaning with examples
- The government offered a non-repayable grant to small businesses struggling to recover from the economic downturn. This aid was designed to help them cover expenses and retain employees, boosting their ability to survive, without the burden of future payments. This form of support was crucial for stabilising the job market during a recession. The aim was to provide immediate relief to the businesses.
- A philanthropic foundation provided non-repayable funding to a research institution for the development of a new vaccine. This support allowed the scientists to focus on innovation and experimentation, without the pressure to generate immediate profits. It accelerated the pace of discovery, focusing more on the need of the people rather than business. This financial support enabled accelerated research.
- In response to a natural disaster, international aid organizations distributed non-repayable funds to affected families. The aid provided immediate relief for basic needs like food, water, and shelter. Families were provided with a level of financial stability, allowing them to slowly begin rebuilding their lives and addressing the challenges faced due to these calamities, and helping them recover faster.
- The university awarded non-repayable scholarships to exceptional students to remove financial barriers to higher education. These scholarships were crucial for allowing these students to pursue their academic goals, regardless of their financial background. They help with the building of a better future and give equal opportunities to everyone who seeks knowledge.
- As a part of a debt-relief program, some countries agreed to write off a portion of another country's existing loans, making the loans non-repayable. This action provides a critical form of financial relief to struggling nations, improving their economy and providing access to resources. This decision often provides a vital boost, allowing governments to allocate resources more efficiently.