Vyavsay School
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Margin money

The part of a project's cost the borrower pays, or a subsidy covers, rather than the bank's loan.

Banks rarely lend the whole cost of a project. The share they do not lend is the margin, and it has to come from you — your savings, a partner, or, under some schemes, a government subsidy that the scheme itself calls margin money.

Showing where your margin comes from is one of the first questions in a loan application.

Learn it in a lesson

See also: PMEGP, Project report