Difference between Write off and Waiver of Loans
Loan write-off and Loan waivers are two tools for dealing with bad loans. Many people are unaware of the differences between these financial terms. Though both loan write-offs and waivers seem similar, there are fundamental differences between them. Take the case of an example. Your friend borrows Rs.1 lakh from you while moving away from town to another location, promising to repay you within a month. You wait for a few months and still get no reply from him. Thus, you have no way of getting your money back unless he returns to your city, which is far-fetched and next to an impossible event. So, what you do is write off the loan while still hoping to regain the money after some time. Suppose after a few months, the same friend returns to your city and contacts you. He may apprise you of his poor financial condition and express his inability to repay the loan. He may beg you to forgive him in his dismal condition. Now, you have the chance to waive off the loan. So, you will deliber