I’ve been reading about loan waivers in the news, especially for farmers and certain sectors, and it got me thinking can a personal loan ever be waived off for an individual borrower in India? Are there any situations, like financial hardship, medical emergencies, or government schemes, where banks or NBFCs forgive the loan amount?
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Let’s first understand what loan waive off is, It is very rare that the personal loan gets waived off, it is the outcome of conditions where the person who has taken the loan cannot repay the money they have borrowed either partially or in full. It can be done by lender or government at times of financial hardships.
Full waive off of personal loan is next to impossible in India, unlike farm loans or education loans that sometimes get waived under government schemes.