Loan Settlement
Loan Settlement — Clear Your Dues Without Legal Harassment
Struggling with unpaid EMIs, mounting penalties, or constant recovery calls? If your loan has turned into a Non-Performing Asset (NPA) and repayment seems impossible, you may be eligible for a loan settlement — a legal and structured way to close your loan at a negotiated amount.
At Bank Samadhan, we specialize in helping individuals and small businesses settle overdue loans through proper negotiation with banks, NBFCs, and financial institutions — while protecting their legal and financial interests.
What Is Loan Settlement?
Loan settlement is a process where the borrower pays a reduced, negotiated amount to the bank to settle a loan account that cannot be repaid in full. It is usually offered when:
The borrower is financially unable to repay due to job loss, medical crisis, or business failure
The account is already classified as NPA
The lender is ready to close the loan to recover part of the dues
Once a settlement letter is issued and the agreed amount is paid, the account is considered settled, not closed.
When Should You Opt for Loan Settlement?
You have multiple defaulted EMIs or loans marked as NPA
The bank is threatening to take legal action or file a case
You are unable to manage loan restructuring or refinancing
You want to stop harassment and close the loan quickly
You have some money available for a one-time settlement
Loan settlement should be your last resort, and must be done through proper documentation to avoid future issues.
How Bank Samadhan Helps with Loan Settlement
We help you resolve your overdue loans professionally by handling:
Loan Account Review
We assess your loan status, overdue amount, interest, and penalty charges.Negotiation with Bank/NBFC
Our experts negotiate with the lender to reduce the settlement amount.Settlement Letter Drafting
We ensure the bank issues a written offer letter mentioning the agreed amount, waiver, and closure terms.Payment Support & Documentation
We guide you through the safe payment process and ensure receipt of No Dues Certificate (NOC).CIBIL Reporting Guidance
We help you understand how the settlement will reflect in your credit report and suggest ways to improve your score.
Benefits of a Legally Handled Settlement
Stops legal notices and recovery agent harassment
Helps close long-pending NPAs
Prevents property seizure under SARFAESI
Reduces mental stress and legal risks
Can help restart financial planning
Settlements, if not handled professionally, can backfire. Verbal promises or informal deals with agents can lead to fraud, incomplete closure, or legal complications.
Loan Settlement – Frequently Asked Questions (FAQs)
Q1. Is loan settlement the same as loan closure?
No. In settlement, you pay a partial amount, and the bank agrees to write off the rest. It is marked as "settled" in your credit report, not "closed."
Q2. Will loan settlement affect my credit score?
Yes. A settled account negatively impacts your CIBIL score. However, it’s better than ongoing default and may help you rebuild your credit gradually.
Q3. Can I get a loan after settling an old one?
It may be difficult immediately, but with proper follow-up and credit score rebuilding strategies, you can become eligible again over time.
Q4. Do I need to pay the full amount after settlement?
No. Once the written settlement offer is accepted and paid, you are not legally liable for the remaining dues — but everything must be in writing.
Q5. Can I negotiate the loan settlement myself?
You can, but professional help ensures the offer is fair, legally worded, and documented properly. This protects you from future disputes.
Q6. What documents should I receive after settlement?
You must collect:
Settlement Offer Letter
Payment Receipts
No Dues Certificate (NOC)
Closure Confirmation Report (if applicable)
Q7. Does settlement stop SARFAESI or legal action?
If done in time, yes. A valid settlement before auction or possession notice can stop further recovery proceedings.
Want to Close Your Loan with Peace of Mind?
Don’t fall into legal traps or agent fraud. Let Bank Samadhan help you settle your loan the right way — legally, safely, and with complete paperwork.
Contact us today to explore your settlement options and protect your financial future.