If you are thinking about loan settlement, it’s important to understand the legal side of things. Many people are confused or scared because of myths or unclear information. The truth is — loan settlement is legal in India, and when done right, it can help you settle your debt without facing agent harassment or bank harassment.
Let’s break down the legal aspects in simple words.
What Is Loan Settlement Legally?
Loan settlement is a mutual agreement between the borrower and the lender (bank or NBFC). It means you pay a reduced amount as a one-time payment, and in return, the lender agrees to close the loan. This is considered a “settled” account, and legally, you are no longer responsible for the remaining balance.
Why Is It Legal?
RBI (Reserve Bank of India) allows banks and NBFCs to settle loans under certain conditions. The settlement is usually allowed when the borrower is genuinely unable to repay due to financial difficulties like job loss, illness, or business failure.
The Role of Documentation
The most important legal protection during settlement is proper paperwork. After your loan is settled, the bank must provide a written loan settlement letter and a No Dues Certificate. This protects you from future legal action.
Loanifyr Helps You Do It Right
At Loanifyr, we make sure every part of your loan settlement is legal. We speak to the bank, draft settlement terms, and ensure you get proper proof once the loan is cleared. We also stop agent harassment by handling all communications for you.
Is Credit Card Debt Included?
Yes. Credit card debt settlement also follows a similar legal process. We help close your card dues through negotiation and formal closure with the card issuer.
If you’re facing legal pressure or harassment due to unpaid loans, don’t panic. With Loanifyr, you can settle your loan legally, safely, and with full peace of mind.
Visit www.loanifyr.in to get started today.