{"id":6065,"date":"2023-01-04T11:52:47","date_gmt":"2023-01-04T11:52:47","guid":{"rendered":"https:\/\/www.indifi.com\/blog\/?p=6065"},"modified":"2025-11-26T07:36:28","modified_gmt":"2025-11-26T07:36:28","slug":"difference-between-write-off-and-waive-off","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/","title":{"rendered":"Difference Between Loan &#8220;Write-off and Waive-off&#8221;?"},"content":{"rendered":"\n<p>When a borrower cannot repay their EMIs for more than 90 days, their loan account is considered a &#8216;bad debt&#8217; by the lender. There are two ways lenders typically deal with bad debts: <strong>write off and waive off <\/strong>them. One may think these two terms are similar, but they are very different concepts.<\/p>\n\n\n\n<p><strong>Write-off<\/strong>: When a lender writes off a bad debt, they are essentially removing it from their books. This means the borrower is no longer liable for repaying the debt.<\/p>\n\n\n\n<p><strong>Waive-off<\/strong>: When a lender waives off a bad debt, they are forgiving the debt and essentially absolving the borrower of any responsibility to repay it. However, the debt still remains on the books and shows up as an outstanding balance.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/#Difference_Between_Loan_Write_Off_and_Waive_Off\" title=\"Difference Between Loan Write Off and Waive Off\">Difference Between Loan Write Off and Waive Off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/#What_is_a_Loan_Waiver\" title=\"What is a Loan Waiver\">What is a Loan Waiver<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/#What_is_Loan_Write_Off\" title=\"What is Loan Write Off\">What is Loan Write Off<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/#When_is_It_Appropriate_to_Use_a_Write_off_and_Waiver_off\" title=\"When is It Appropriate to Use a Write off and Waiver off ?\">When is It Appropriate to Use a Write off and Waiver off ?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/#General_FAQs\" title=\"General FAQs\">General FAQs<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/#1_How_can_I_waive_my_home_loan\" title=\"1) How can I waive my home loan?\">1) How can I waive my home loan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/#2_When_should_you_write_off\" title=\"2) When should you write off?\">2) When should you write off?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/#3_What_is_an_example_of_a_write-off\" title=\"3) What is an example of a write-off?\">3) What is an example of a write-off?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.indifi.com\/blog\/difference-between-write-off-and-waive-off\/#4_What_is_a_write-off_in_banking\" title=\"4) What is a write-off in banking? \">4) What is a write-off in banking? <\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference_Between_Loan_Write_Off_and_Waive_Off\"><\/span><strong>Difference Between Loan Write Off and Waive Off<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The major differences between a loan write-off and a loan waive-off are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Loan Waive Off<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Loan Write Off<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">A loan waive-off is the complete cancellation of the loan. As a result, the borrower is free from that particular debt.<\/td><td class=\"has-text-align-center\" data-align=\"center\">To clean up the balance sheet, lenders write off loans. However, the loan account remains in their books as they hope to recover it later.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">A waived-off loan will not be recovered by the bank by taking legal action against the borrower.<\/td><td class=\"has-text-align-center\" data-align=\"center\">When a loan account is written off, the lender can try to recover the loan amount by using a legal entity.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">In the case of a waive-off, the borrower&#8217;s ownership papers will be returned if they have offered any kind of collateral to the lender.<\/td><td class=\"has-text-align-center\" data-align=\"center\">In the case of a write-off, any collateral provided by the borrower will either be confiscated or sold. To recover the loan amount, the collateral can be auctioned off.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">A Government waives off loans for farmers when natural disasters occur.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Loan write-offs are a lawful process by which banks and NBFCs write off loans to minimize tax liabilities.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">With the support of the government, lenders perform this voluntary action.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Lending institutions frequently engage in this practice on their own.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Loan_Waiver\"><\/span><strong>What is a Loan Waiver<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When banks and financial institutions come to the understanding that there is no possibility of a loan being paid back by the borrower, the lender can choose to either forgive or waive the loan. If the loan is waived, the borrower will no longer be held accountable for returning the money. A loan waiver also indicates that the bank or institution will not try to get the money back in any way or take legal action against the borrower.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Loan_Write_Off\"><\/span><strong>What is Loan Write Off<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Banks often write off loans to clean up their balance sheets. When a loan is written off, the account still remains in the lender&#8217;s books, as they hope to recover it at a later date. If any collateral is offered by the borrower, the lender may confiscate it until the loan has been repaid. The collateral could also be auctioned off to recover the loan amount. If the borrower has not submitted any collateral, the lender could also take legal action to recover a portion of the sum.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_is_It_Appropriate_to_Use_a_Write_off_and_Waiver_off\"><\/span><strong>When is It Appropriate to Use a Write off and Waiver off ?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While no fixed answer will work for every situation, as a general rule, it is usually best to use a write-off or waiver when the amount in question is small and there is minimal risk involved. If the amount is large or there is significant risk involved, it is best to avoid using a write-off or waiver:<\/p>\n\n\n\n<ul>\n<li>There are significant financial benefits to be gained by write-offs or waiving fees.<\/li>\n\n\n\n<li>The benefits gained don&#8217;t harm other people or businesses.<\/li>\n\n\n\n<li>The write-offs or waivers are allowed under the relevant laws and regulations.<\/li>\n\n\n\n<li>They are also in line with the company&#8217;s ethical standards.<\/li>\n<\/ul>\n\n\n\n<p>It is crucial to weigh all possible implications before using a waiver or write-off, as there could be advantageous and disadvantageous consequences. For example, a write-off or waiver may help a company reduce its tax liability, but it could also lead to it missing out on significant earnings. Weighing the pros and cons is key to making the best decision for your business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While loan waive-offs and loan write-offs are similar-sounding terms used in the context of bad debts, they are very different. You can learn more about topics pertaining to personal loans, business loans, and home loans online on <a href=\"https:\/\/www.indifi.com\/business-loan\" target=\"_blank\" rel=\"noreferrer noopener\">Indifi<\/a>. To avail of a loan at competitive interest rates with flexible repayment tenors and balance top-up facilities, apply on Indifi today!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"General_FAQs\"><\/span>General FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_How_can_I_waive_my_home_loan\"><\/span>1) How can I waive my home loan?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>If a borrower is unable to repay the entire loan amount, the lender offers the borrower a discounted rate to cover the amount that is overdue. Later, the remainder of the amount is waived.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_When_should_you_write_off\"><\/span>2) When should you write off?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>When an account receivable cannot be collected, a write-off is mandated. This generally occurs when inventory is obsolete, a fixed asset is no longer useful, or an employee leaves and refuses to repay an advance.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_What_is_an_example_of_a_write-off\"><\/span>3) What is an example of a write-off?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Business expenses are the costs of running a business and can be deducted from revenue to lower the total taxable income. Common business write-offs include vehicle expenses, rent or loan payments, and office supplies.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_What_is_a_write-off_in_banking\"><\/span>4) What is a write-off in banking? <span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>A write-off is an accounting maneuver that decreases the value of an asset while adding a debit to the liabilities account. Businesses commonly use this action when trying to account for unpaid receivables, unpaid loan obligations, or losses on inventory in storage.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When a borrower cannot repay their EMIs for more than 90 days, their loan account is considered a &#8216;bad debt&#8217; by the lender. There are two ways lenders typically deal with bad debts: write off and waive off them. One may think these two terms are similar, but they are very different concepts. Write-off: When [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/6065"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=6065"}],"version-history":[{"count":6,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/6065\/revisions"}],"predecessor-version":[{"id":15028,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/6065\/revisions\/15028"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=6065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=6065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=6065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}