nonconcessional

Nonconcessional is an adjective used to describe terms or arrangements that are not provided on concessional or preferential terms. The term is applied in several contexts, most commonly in international finance, development aid, and retirement savings, where distinctions between concessional and nonconcessional terms influence cost, eligibility, and fiscal impact.

In international finance and development, concessional financing involves loans or grants offered with below-market interest rates, long grace periods, or other favorable terms. Nonconcessional financing, by contrast, is provided on market terms—at standard interest rates, typical repayment schedules, and without targeted subsidies. This categorization helps organizations like multilateral development lenders and donors differentiate between more and less favorable forms of assistance and assess fiscal and credit implications for borrowing countries.

In the context of retirement savings, nonconcessional contributions refer to after-tax contributions to a pension or superannuation fund. These are distinct from concessional contributions, which are made with pre-tax income and receive a tax concession. The tax treatment of nonconcessional contributions and related earnings varies by jurisdiction, and there are typically annual caps and special rules (such as bring-forward provisions) governing how much can be contributed on a nonconcessional basis.

In aid policy and general budgeting, nonconcessional aid or financing denotes assistance not provided on concessional terms, meaning it does not include special subsidies or below-market pricing. The specific definitions and thresholds for nonconcessional terms depend on the governing laws or program rules of the relevant country or organization.

See also: concessional, concessional loan, nonconcessional contributions.