Loan settlement is when you negotiate with your lender to pay a reduced amount of your debt based on what you can afford. It’s also called debt relief or debt resolution.

Only unsecured loans, like credit cards, personal loans, and unsecured business loans, can be settled because banks or NBFCs don’t have collateral or security against these loans.

A person can settle their unsecured loan if they face financial difficulty or if their EMIs | and minimum payments exceed 50% of their monthly income.

After a settlement, once your paying capacity improves, you can enroll in a credit rebuilding program. This will help restore your credit score over time, making it easier to qualify for new loans and improve your financial standing in the future.

If a person is facing financial difficulty, they can inform their lenders about a moratorium or loan restructuring to receive relief from the financial burden.

Loan settlement offers various advantages. Firstly, it allows you to pay off your debt faster. If you’re finding it hard to keep up with monthly payments, settling your loans can provide some relief and give you financial breathing room, which can be a great help when you’re facing financial difficulties.

Yes, it is perfectly legal.

Yes, it is possible, but negotiating under pressure can be challenging. Our team has extensive experience in handling such situations and can secure the best possible outcome for you.

Loan settlement is at the discretion of the lenders, and they are the only ones who can issue settlement letters. We can provide assistance, but we do not have the authority to issue such letters.