forgivable loan
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A forgivable loan, also called a soft second, is a form of loan in which its entirety, or a portion of it, can be forgiven or deferred for a period of time by the lender when certain conditions are met. It is more like a grant with conditions rather than a loan as in most cases the loan is forgiven if all the conditions are met. However, if the conditions are not met the loan has to be repaid usually with interest. It can be seen as an incentive for the borrower to perform or achieve a goal set by the lender.
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