What Is Loan Settlement And How Does It Work In India?

Answer:

In India, a lot of people face sudden financial problems such as loss of job, loss of business or medical emergencies and struggle to repay their loans. Banks may also start making recovery calls or send notices or ask for repayment through recovery agents when there is no payment of EMI for a long time. In such cases, loan settlement is an option where bank may agree to close the loan by accepting a lower amount than the total outstanding balance.

The amount of the settlement usually depends on the borrower’s financial condition, repayment track record and discussions with the bank. Once the agreement is made , the borrower pays the agreed amount to bank and bank issues a settlement letter or No Dues Certificate .

Advocate B.K. Singh and his team help borrowers at every step, from talking to banks, sending legal notices, handling recovery pressure to ensuring that all settlement papers are properly drafted to avoid any future disputes.