Non refundable loan or repayment free loan

Respected Sirs/Madams,

1. Is it possible to give an interest free and repayment free loan to a friend?  Or will it become liable to deduction under gift tax?

2. If I want to give my friend an interest free loan to carry out his business but if incase his business fails, I don't want any repayment or refund of the principal amount. Is it possible to draft such agreement? Is there any such process to do it legally?

Thank You.

Replies (3)
Yes there is a legal process. You can invest in his business and take a stake This stake can be diluted in future and he won't owe u anything in case business fails.

Thank You for your solution.

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