First, a free loan is just a loan without interest, and the principal still needs to be paid back. Specifically, it is an interest-free loan. Interest-free loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them, in which the interest rate is provided free of charge by banks or paid by the government or corresponding institutions according to agreed conditions.

Second, there is also a kind of free aid. The object of the grant is people's life, environmental protection, personnel training and other problems that are difficult to solve with yen loans. It is a form of aid that provides funds in the form of grants, and the recipient country does not undertake repayment obligations. Free assistance to Huimin project is also an integral part of free funding.

Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds. Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development; At the same time, banks can also obtain loan interest income and increase their own accumulation.