A forgivable loan requires you to repay the principal in full along with applicable interest charges, the way you would with any ordinary loan. However, if you satisfy certain conditions outlined in the loan agreement, you may be eligible to have all, or a portion of the loan forgiven. Conversely, a grant is a financial reward given to you by an organization, often a government, charity, or other public institution. Unlike a forgivable loan, you never have to repay the amount you receive under any conditions – it’s yours to keep forever.