Frequently asked questions

1. What is loan settlement?

Loan settlement is a process where the bank or NBFC agrees to close your loan for a reduced amount due to genuine financial hardship.

2. Is loan settlement legal in India?

Yes. Loan settlement is completely legal under RBI guidelines when borrowers face real financial difficulties.

3. Will loan settlement affect my CIBIL score?

Yes, it may reduce your credit score temporarily, but it also helps you close the loan safely and avoid further recovery pressure.

4. How much can I save through settlement?

Savings depend on your outstanding amount, your financial condition, and the lender’s policy.

5. How long does the settlement process take?

Some cases take a few weeks, while others may take a few months depending on the bank/NBFC.

11. What happens after settlement?

You receive a Settlement Letter or No Dues Letter, recovery calls stop, and the status is updated in your CIBIL report.

10. Is my information confidential?

Yes. All your details and documents are kept fully confidential and secure.

9. Which types of loans can be settled?

Most unsecured loans such as personal loans, credit cards, app loans, consumer loans, and unsecured business loans can be settled.

8. Do I need to pay the full amount upfront?

No. You only pay the agreed settlement amount as per the final approval from the bank/NBFC.

7. What if I receive a legal notice?

We help you understand the notice, prepare a proper response, and take the right legal steps.

6. Can you stop harassment from recovery agents?

Yes. We guide you on your rights and help you stop illegal or abusive recovery practices.