Loan waiver
The removal of a real or a potential liability of a person or a party due to a voluntary action of another person or a party who is in an agreement with former is called a waiver. If the liability which is removed is a loan taken by the former person or party, it is called a loan waiver. Usually a waiver is in a written form or in the form of some action.[1]
Loan Forgiveness
In certain situations, the United States Federal Government cancels all or a part of an education loan and this practice of the Government is known as Loan Forgiveness. It is also commonly referred to as Stafford Loan Forgiveness.[2] In order to be eligible for Loan Forgiveness, there are certain criteria that have to be fulfilled by the applicants. they must perform or undertake any of the following services:-
1. Volunteer Work
2. Military Services
3. Teaching or Practicing Medicine in certain types of communities; or
4. Any other criteria as specified by the Forgiveness Program
5. Qualify for Public Service Loan Forgiveness[3] [4]
Farm Loan Waiver in India
On the 29th of February, 2008, Mr.P.Chidambaram, the then Finance Minister of India announced the largest relief package for farmers which included complete waiver of loans given to small and marginal farmers. [5] The 600 billion rupee package was inclusive of the total value of the loans being waived for 30 million small and marginal farmers estimated at 500 billion rupees and a One Time Settlement scheme (OTS) for another 10 million farmers estimated at 100 billion rupees.[6] [7]