The Loan Forgiveness Agreement serves as a crucial legal instrument in Indian financial transactions where a lender agrees to forgive all or part of a borrower's outstanding loan obligations. This document becomes necessary in various scenarios, such as debt restructuring, settlement negotiations, employee benefit programs, or family arrangements. The agreement must comply with Indian banking regulations, the Indian Contract Act, and relevant tax laws, particularly considering the tax implications of debt forgiveness under the Income Tax Act, 1961. A well-drafted Loan Forgiveness Agreement protects both parties by clearly documenting the terms of forgiveness, ensuring proper discharge of the debt, and addressing any continuing obligations or conditions. It's essential for maintaining clear financial records and preventing future disputes regarding the forgiven debt.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
1. Parties: Identifies and defines the Lender and Borrower with their complete legal names, addresses, and any relevant registration numbers
2. Background: Recitals describing the original loan agreement, current outstanding amount, and circumstances leading to loan forgiveness
3. Definitions: Defines key terms used throughout the agreement, including 'Loan Amount', 'Forgiveness Date', 'Original Loan Agreement', etc.
4. Loan Acknowledgment: Details of the original loan, including date, principal amount, interest rate, and current outstanding balance
5. Forgiveness Terms: Specific terms of the loan forgiveness, including amount being forgiven and effective date
6. Tax Implications: Acknowledgment of tax consequences and responsibilities of both parties regarding the forgiven amount
7. Release and Discharge: Legal release of the Borrower from obligations and formal discharge of the debt
8. Representations and Warranties: Statements by both parties confirming their authority, understanding, and acceptance of the agreement terms
9. Governing Law: Specifies that Indian law governs the agreement and relevant jurisdiction
10. Execution: Signature blocks and execution requirements
1. Partial Forgiveness Terms: Include when only a portion of the loan is being forgiven, specifying remaining obligations
2. Conditions Precedent: Include when forgiveness is conditional upon certain actions or events
3. Confidentiality: Include when parties wish to keep the terms of forgiveness private
4. Regulatory Compliance: Include when the loan involves regulated entities like banks or financial institutions
5. Dispute Resolution: Include when parties want to specify arbitration or mediation procedures
6. Survival Clause: Include when certain provisions need to survive the termination of the agreement
1. Schedule A - Original Loan Agreement: Copy or details of the original loan agreement being forgiven
2. Schedule B - Loan Statement: Current loan statement showing outstanding principal, interest, and other charges
3. Schedule C - Payment History: Record of payments made under the original loan agreement
4. Appendix 1 - Tax Declaration: Required tax forms or declarations related to the loan forgiveness
5. Appendix 2 - Corporate Resolutions: If either party is a company, resolutions authorizing the loan forgiveness
Find the exact document you need
Pre Contract Agreement Car (Finance)
An Indian law-governed preliminary agreement setting out the framework and conditions for a potential car financing arrangement between a lender and prospective borrower.
Download
Mortgage Servicing Agreement
An agreement governing mortgage servicing operations in India, establishing the relationship between lenders and servicers under Indian banking laws.
Download
Letter For Lending Money To Someone
An Indian law-compliant letter document that formalizes a money lending arrangement between parties, detailing loan terms and conditions.
Download
Lending Money Letter
A formal Indian law-compliant document establishing loan terms between parties, including amount, interest, and repayment conditions.
Download
Lending Form
An Indian law-compliant lending form that documents loan agreements between lenders and borrowers, incorporating key regulatory requirements and transaction terms.
Download
Hardware Loan Agreement
An Indian law-governed agreement establishing terms for temporary hardware loans between parties, including usage conditions, maintenance requirements, and return specifications.
Download
Borrow Agreement Form
An Indian law-governed agreement establishing terms and conditions for borrowing arrangements, including loan amount, interest rates, and repayment terms.
Download
Business Loan Broker Agreement
An Indian law-governed agreement establishing terms for loan broking services between a financial intermediary and a business client, including service scope and regulatory compliance requirements.
Download
Borrowing Money Letter
A formal letter document governed by Indian law that establishes loan terms between borrower and lender, serving as a legally binding record of the borrowing arrangement.
Download
Unsecured Personal Loan Agreement
An Indian law-governed agreement for unsecured personal loans, establishing loan terms and parties' obligations without requiring collateral.
Download
Two Wheeler Loan Agreement
An Indian law-governed agreement establishing terms and conditions for two-wheeler vehicle financing, including loan details, security arrangements, and party obligations.
Download
Term Loan Facility Agreement
An Indian law-governed agreement setting out terms and conditions for a term loan facility, including loan amount, interest, repayment, and security arrangements.
Download
Syndicated Facility Agreement
An Indian law-governed agreement establishing terms for a loan provided by multiple lenders (syndicate) to a borrower, detailing facility terms and regulatory compliance requirements.
Download
Simple Mortgage Deed Draft
An Indian legal document creating a charge on immovable property as security for a loan, governed by the Transfer of Property Act, 1882.
Download
Simple Mortgage Agreement
An Indian legal document creating a security interest in real property as loan collateral, governed by the Transfer of Property Act, 1882.
Download
Simple Loan Agreement Form
An Indian law-governed agreement establishing terms and conditions between lender and borrower for a basic loan transaction.
Download
Self Help Group Loan Agreement Form
An Indian jurisdiction agreement establishing loan terms between a financial institution and a Self Help Group, incorporating group liability and microfinance regulations.
Download
Private Loan Agreement For (Real Estate)
An Indian law-governed agreement establishing terms and conditions for private lending secured against real estate property, including loan terms, security arrangements, and enforcement mechanisms.
Download
Peer To Peer Lending Agreement
An RBI-compliant agreement governing peer-to-peer lending transactions in India, establishing terms between lender and borrower through a regulated P2P platform.
Download
Personal Loan Letter
An Indian-law governed letter documenting personal loan terms between parties, including loan amount, interest, repayment schedule, and obligations.
Download
Personal Loan Contract Form
An Indian law-governed contract template establishing terms and conditions for personal loans between financial institutions and individual borrowers.
Download
Personal Loan Agreement Document
An Indian law-governed agreement documenting terms and conditions of a personal loan between lender and borrower, including loan amount, interest, repayment terms, and legal obligations.
Download
Personal Loan Agreement Contract
An Indian law-governed agreement establishing terms and conditions for a personal loan between a lender and borrower, including loan amount, interest, and repayment terms.
Download
Personal Line Of Credit Agreement
An Indian law-governed agreement establishing a personal line of credit facility between a financial institution and an individual borrower, setting out terms for revolving credit access.
Download
Small Loan Contract
An Indian law-governed agreement establishing terms and conditions for a small-scale loan between lender and borrower, including loan amount, interest rates, and repayment terms.
Download
Small Loan Agreement
An Indian law-compliant agreement for documenting small-scale lending arrangements, specifying loan terms, repayment conditions, and security provisions.
Download
Pro Forma Loan Agreement
A standard-form loan agreement template compliant with Indian law and banking regulations, establishing terms for lending transactions.
Download
Loan Car Form
An Indian-compliant legal document establishing terms and conditions for temporary vehicle loans between parties, adhering to Indian motor vehicle and contract laws.
Download
Mortgage Subordination Agreement
An Indian law-governed agreement that establishes priority between multiple mortgages on a property, where one mortgage holder agrees to subordinate their security interest to another.
Download
Family Member Promissory Note
An Indian-law governed promissory note formalizing loan agreements between family members, establishing legally binding terms while preserving familial relationships.
Download
Vendor Finance Loan Agreement
An Indian law-governed agreement establishing terms for vendor financing, including loan details, security arrangements, and party obligations.
Download
Employee Computer Loan Agreement
An Indian law-governed agreement establishing terms for employer-provided computer equipment loans to employees, including repayment and usage conditions.
Download
Acknowledgement Of Debt Agreement
An Indian law-governed agreement formally recognizing a debt obligation between parties, including repayment terms and interest calculations.
Download
Balloon Loan Agreement
An Indian law-governed loan agreement featuring smaller periodic payments with a large final balloon payment, structured under Indian banking and contract laws.
Download
Loan Agreement Between Companies
An Indian law-governed agreement establishing terms and conditions for an inter-company loan, including loan amount, interest, repayment terms, and parties' obligations.
Download
Inter Lender Agreement
An Indian law-governed agreement establishing rights and relationships between multiple lenders in a financing arrangement, compliant with Indian banking regulations.
Download
Overagreement
An Indian law-governed master agreement establishing framework terms for ongoing business relationships and future specific transactions.
Download
Litigation Financing Agreement
An Indian law-governed agreement establishing terms for third-party funding of legal proceedings, including funding commitments, returns, and control mechanisms.
Download
Credit Terms Agreement
An India-governed agreement establishing credit facility terms between lender and borrower, compliant with Indian banking regulations and enforcement mechanisms.
Download
Subordinated Loan Agreement
An Indian law-governed agreement establishing a subordinated loan facility where the lender's claims are contractually subordinate to senior debt obligations.
Download
ұԾ’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; ұԾ’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)