Answer

What is the difference between a loan and a grant?

A loan is borrowed money you repay with interest; a grant is money you don't repay but usually must qualify for and spend on set purposes. Grants are scarce and conditional; loans are available and flexible.

2 min read

Repay + interestLoan

No repaymentGrant

Rare & tiedGrant reality

How they differ

A loan is finance you repay over a term with interest, available whenever you qualify and usable for almost any business purpose. A grant is a sum you don't repay — but grants are limited, competitive, often tied to specific sectors, locations or activities, and usually come with conditions on how the money is spent and reported.

How to think about each

Chase grants where a genuine scheme fits your activity — free money is worth the effort. But grants are unpredictable and slow, so they rarely suit a time-sensitive need. For growth or a cash gap you can act on now, a loan is the reliable, flexible option. See grant vs loan for funding. The two aren't rivals — use a grant if one fits, a loan for everything else.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.

Frequently asked questions

Should I always look for a grant before borrowing?

If a genuine grant fits your activity, yes — it's money you don't repay. But grants are scarce, competitive and slow, so don't delay a time-sensitive need waiting on one. Often a loan is the practical route, with grants as a bonus if available.

Do grants really have no strings?

They don't require repayment, but they usually come with conditions — eligibility criteria, approved uses, and reporting. Breaching the terms can mean repaying the grant. Read the conditions as carefully as you would a loan agreement.