Compromise Settlement: A mutually agreed solution between the bank and the borrower in case of non-payment of loan.

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Benefits: Financial relief, stress reduction, legal protection, debt relief, and prevention of lawsuits.

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Types: One-Time Settlement: Pay lump sum amount. Restructured Settlement: Modify payment terms or schedule.

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Process: Contact bank, propose settlement offer, negotiate terms, and draft formal agreement letter.

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Note: Obtain Settlement Letter, update CIBIL score, repair credit, and plan for future financial health.

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Disadvantages: CIBIL score may drop, future loan approval becomes harder, and creditworthiness affected.

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