Recently, Zhejiang Province issued a welfare policy related to college students' entrepreneurial loans, stipulating that if the business fails, the government will compensate the loans below 6,543.8+million and the loans above 6,543.8+million by 80%. But what does this compensation mean? When the government compensates, do we still need to pay back? If I want to return it, who should I return the money to?

Do you still need to pay back after compensation?

1 Financial insurance compensation:

The simple understanding of compensation is to pay debts for others. Some lending institutions take risks in order to introduce insurance or guarantee companies. When a borrower applies for a loan, he needs to pay an insurance or guarantee fee first. If the borrower fails to repay the money within the time limit, the debt shall be repaid by the insurance or guarantee company. For borrowers, their creditors are transformed from online lending institutions into insurance companies or guarantee companies. In this case, we also need to repay the loan, but the final fund is to repay the insurance company or guarantee company.

2 government compensation:

The simple understanding of government compensation is that the government contributes rather than pays off debts, and the required funds are arranged by the government financial department.

As for the failure of college students' entrepreneurial loans in Zhejiang Province, it is not clear whether it needs to be repaid after government compensation.

However, in order to encourage college students to actively enlist in the army or devote themselves to places that need to be built in the motherland, the policy of university tuition compensation or national student loan compensation has been introduced. Therefore, according to the compensation of the government in the past, we don't need to repay it. As for the specific situation, the follow-up actual situation shall prevail.