Summary
mPokket is an easy-to-use digital lending application that offers short-term, small-sized mPokket Personal Loan to students and young professionals. It is the best solution to deal with immediate requirements like educational expenditures, utility bills, or emergency needs. It also allows users to register, upload all the documents, and get approval online.
mPokket offers loans as high as ₹20,000 for students and working professionals get higher amounts based on their profile and repayment capacity. The flexibility of the repayment tenure varies from 1 to 3 months with nominal interest rates and processing fees. Moreover, even early repayment is allowed with the benefits of saving interest charges.
Though mPokket is a very reliable and accessible option, responsible borrowing is essential. Users should borrow only what they can comfortably repay so that they avoid late payment fees, penalties, or a negative impact on their credit score. If repayment becomes difficult, mPokket offers restructuring or settlement of the loan.
Introduction
Repayment of money borrowed from mPokket should be done in time. mPokket is a digital platform that provides instant small loans to students and working professionals. Sometimes, due to financial conditions, it becomes difficult to repay the money on time. Therefore, in such situations, “loan settlement” can prove helpful.
Loan settlement means that you talk with your lender and come to an agreement regarding the outstanding amount by reducing it. Such processes can lessen your financial pressures, but along with such processes, one has to take the utmost proper steps in such actions. If you have borrowed a loan from mPokket and are facing problems while repaying that loan, there is no need to lose your cool.
We will discuss in detail how to settle the mPokket personal loan in this article. This will make you understand the loan settlement process, what documents are required, and what to be aware of. We will also let you know how to contact the mPokket customer care the right way so that the settlement process becomes easy and clear.
This article not only explains the process of loan settlement but also teaches one how to interact with representatives at mPokket so that one can get a better bargain. If you are planning to learn about settlement procedures concerning mPokket personal loans, then this article is the right starting point for you.
What is a mPokket Personal Loan?
A mPokket Personal Loan is a fast and hassle-free financial product offered through the mPokket app, mainly targeting students and young working professionals. This online lending platform gives small short-term loans to help users meet their urgent financial needs like fee payments, buying essential items, or unexpected expenses.
It is very easy and completely online: download the app, register with a minimum of basic information, and get approved to receive the loan amount directly in the bank account.
What is mPokket Personal Loan Settlement?
mPokket Personal Loan Settlement is a financial procedure in which a borrower settles his or her outstanding loan amount by paying one-time lump sums to the bank or lender. Generally, the paid amount is smaller than the balance of the entire loan amount. The lender agrees to accept this amount as completing the loan repayment.
This is typically accepted when the borrower is not financially strong enough to continue with monthly EMIs. By settling this loan, the borrower can close the loan account and avoid further interest and penalties and the possibility of becoming a defaulter.
However, animal Finance Personal Loan Settlement settlement can impact the borrower’s credit score because it is often reported as a partial payment to credit agencies. Nonetheless, it may be an efficient solution for debtors who need immediate financial relief.
Why is there a need for mPokket Personal Loan Settlement?
A personal loan is required when the borrower is facing financial difficulties and cannot repay the loan on time. Life is unpredictable, and unexpected situations like job loss, medical emergencies, or a sudden drop in income can make it hard to keep up with regular monthly installments (EMIs).
This way, paying off the loan continues to add to the interest and penalties, which increases the pressure on one’s finances. Additionally, a loan may place an individual at risk of default, negatively affecting the borrower’s credit score.
An Affordable Personal Loan Settlement provides a way out because the borrower can pay off the loan in one shot. It avoids further financial pressure on the account holder, ceases additional charges, and shuts down the loan account. It’s a source of recovery for the banks since it does not result in a total loss if the account holder defaults.
What documents are required for mPokket Personal Loan Settlement?
Documents Needed to Close mPokket Personal Loan Settlement
- Your loan account number; or any document that identifies the loan, such as the loan agreement or account statement.
- Valid ID: Aadhaar Card, PAN Card, Passport, or Voter ID.
- Identities of the address where one is currently living: Utility bills, the Aadhaar Card, or rental agreement.
- The lender may request that you submit documents such as salary slips, bank statements, or income tax returns to explain your financial situation.
- Write a formal letter to the lender stating why you want to settle the loan and the amount you wish to negotiate.
- After negotiation, make sure to get the settlement terms in writing. This agreement should reflect the settled amount, and payment terms, and even ensure that the loan will be closed after payment.
- Record a receipt or bank transfer confirmation of making the lump sum payment as part of your settlement.
- After finalizing the settlement process, request an NOC from your lender. A No Objection Certificate is a report that proves your loan is fully settled and has no pending due.
What is the process of a mPokket Personal Loan Settlement?
This works in simple words as follows:
- If you find it difficult to repay your loan, the first thing you should do is call your bank or lender. Honestly explain your situation and ask them to settle the loan.
- The lender will review your case, and then they may settle an amount less than the total loan amount outstanding against you. This can be negotiated so that the amount becomes manageable for you.
- Once you and the lender agree on the settlement amount and terms, make sure to get everything in writing. This ensures there is no confusion or disputes later.
- Pay the agreed lump sum amount on the deadline given by the lender. Use a method that provides proof of payment, like a bank transfer or demand draft.
- After the payment, request the lender to issue a No Objection Certificate (NOC). A NOC is a document that says your loan has been fully paid and there is no pending amount.
- A settlement of mPokket Personal Loan Settlements may influence your credit report. Check your credit report after the settlement. Ensure that it’s updated correctly and marked as closed.
What are the measures to improve the score after the mPokket Personal Loan Settlement?
Measures for Enhancing the CIBIL Score After mPokket Personal Loan Settlement:
- Pay all of your bills. This includes, but is not limited to, credit cards, utility services, and loan EMIs. Paying on time shows that you can manage your funds responsibly, improving your credit score.
- Keep your credit card balance below 30% of its limit. This shows that you are using credit appropriately and helps enhance your CIBIL score.
- Pay off small existing dues, if any. The fewer the pending dues, the better it will be for your credit score.
- After loan settlement, you must not skip paying EMI on other loans. Non-payment affects the CIBIL score negatively.
- Secured and unsecured loans, combined and in a healthy position, add good value to the credit score. Having home loans in one column and personal loans and credit cards in the other column can only add up in the end.
- Keep an eye on your CIBIL report to ensure that it is updated properly. If you find any errors or incorrect information on your report, dispute it with the credit bureau concerned for correction.
- Applying for too many loans or credit cards within a short period can cause the score to decrease. Hence, apply for credit only when necessary.
- Request a higher credit card limit if possible. This will automatically bring down the credit utilization ratio, which would positively impact the score.
- Always use credit responsibly. Avoid overspending and pay the full balance whenever you have an opportunity. This will gradually enhance your CIBIL score.
What are the tips related to mPokket Personal Loan Settlement?
Tips for mPokket Personal Loan Settlement
- Before settling on a mPokket Personal Loan Settlement, you should have a clear view of your financial situation and be certain that you can afford the one-time lump sum payment without adding more financial stress.
- Do not accept the lender’s first offer. Try to negotiate the settlement amount to get the best possible deal. If you are in genuine financial trouble, the lender might be willing to accept less than the total loan balance.
- Always ensure that the settlement terms are in writing. This comprises the agreed-upon amount, a specified payment date, and confirmation that once payment is made, the loan will be marked as settled.
- Please pay the agreed lump sum in full and on time. Delayed or partial payment may complicate the settlement process and increase your financial situation.
- After repaying, apply to the lender for a No Objection Certificate (NOC). An NOC is considered proof that the customer has fully repaid his loan and has no outstanding dues or liabilities.
- Maintain a look at your credit report after settling. Ensure the report is fairly made and reporting error-free. In case of errors, raise disputes to the concerned credit bureau.
- Keep in mind that loan settlement would lower your CIBIL score. Even though clearing off the dues through settlement makes way for other debt clearances, it creates obstacles in accessing further loans in the future.
- After the settlement of the loan, try to improve your credit score by paying bills on time, maintaining low credit card balances, and keeping away from new loans.
- If you’re not sure of the settlement process, you can get a financial advisor or credit counselor to guide you through the process and make the best decision for your financial future.
Which loans come under mPokket Personal Loan Settlement?
Loans that come under the mPokket Personal Loan Settlement
Medical Loan | For paying any kind of unexpected medical bill or treatment. |
Wedding Loan | To help pay for the expenses of the wedding. |
Travel Loan | To pay for holidays or any travel expenses. |
Home Renovation Loan | For home renovation or upgradation. |
Education Loan | For paying education or professional courses. |
Festival Loan | For the expenses of any festival and their other expenses. |
Debt Consolidation Loan | For consolidation of various debts in one loan. |
What are the things to remember during the mPokket Personal Loan Settlement?
Things to Remember when Settling mPokket Personal Loan Settlement
- Know the amount you should pay to settle the loan and make sure you are comfortable with the agreed-upon terms, including the payment date.
- It should always be in writing, and it should include any terms such as a total settlement amount, payment date, or how your loan will be settled.
- Ask the lender whether there are other charges and penalties involved in the settlement. You should know all the hidden costs before proceeding with this process.
- Check if you have adequate money to make the lump sum payment. mPokket Personal Loan Settlement demands an upfront payment of the agreed sum, so ensure that you’re well-prepared financially.
- Once paid, the loan amount should be requested for an NOC from the lender. This document proves to your lender that all your outstanding loans have been completely settled and that there is no remaining DUES balance.
- For loans marked as a ‘spot’ settlement, the score will surely decrease because ‘settled’ and not ‘closed’ must appear on the credit report when applying for a loan with different lenders at future dates.
- Please pay the settlement amount within the stipulated time. If you are late, the lender may charge you extra fees or even reject the settlement.
- Maintain a copy of all the documents and receipts regarding the settlement payment, including confirmation receipts. These may come in handy during future disputes.
- Do not borrow again immediately. Improve your credit score before doing so.
- If the process or the terms are still unclear, consider consulting a financial advisor. Financial advisors can guide you through the settlement procedure and provide the best advice concerning your financial status.
What are the advantages of mPokket Personal Loan Settlement?
Advantages of mPokket Personal Loan Settlement:
- mPokket Personal Loan Settlement helps you repay the loan quickly through a one-time payment, relieving the stress of monthly EMIs.
- It saves you from being declared a defaulter, which can damage your financial reputation and lead to legal complications.
- The settlement amount is usually less than the total outstanding loan amount, so it is cheap if you are financially weak.
- Once you settle the loan, you are never worried about accumulating extra interest, late fees, or penalties.
- It is quite easy and can quickly close the loan account with just proper documentation.
- Settlement of your loan relieves you of any financial stress, as you are now able to focus on all other aspects of life.
- Once you pay off the loan, you can improve your financial status without the burden of any unpaid debts.
What are the disadvantages of a mPokket Personal Loan Settlement?
Disadvantages of mPokket Personal Loan Settlement
- When you settle a loan, it is reported as a “settled” account instead of “closed” to credit bureaus. This reduces your CIBIL score and makes it harder to get loans in the future.
- Lenders may view a loan settlement as a sign of financial instability and may hesitate to approve loans or credit cards for you later.
- Some banks may require a penalty or fees for the settlement processing. Therefore, you have to pay more upfront.
- Although the settlement lowers your overall debt, it does not eliminate the full amount. This might lead to an adverse mark on your financial record.
- Settlement of a loan can affect your reputation with the lender, hence lowering the possibility of them granting future financial requests.
- If you had recompensed the loan completely, it would indicate a good history of repayment and you won’t be able to enhance your creditworthiness through this settlement.
- Settling the amount may take time and may not be easy.
Conclusion
Financial emergencies may strike a person at any minute in today’s fast-paced world, and mPokket is the most convenient solution for anyone to manage short-term financial needs. Be it a student wishing to cover his educational expenses or a young professional facing an unexpected crunch of finances, mPokket makes it easy to access funds quickly and with minimal hassle.
For any effective management, it is critical to understand the way mPokket personal loans operate. Being able to pay on time keeps one from being penalized, and even improves one’s credit score.
Frequently Asked Questions (FAQ’s)
Ans: Valid ID proof like an Aadhaar or PAN card proof of college enrollment of the student or proof of employment by a professional, and a bank account where the loan can be disbursed.
Ans: Once your application is approved, the loan amount is credited to your bank account in a matter of a few hours.
Ans: Yes, mPokket charges a small amount of processing fee, and the interest rate charged varies from loan amount to repayment period; details on this shall be given at the time of loan approval.
Ans: Yes, mPokket permits early loan repayment. Repaying early helps save on the interest charges paid.
Ans: If you don’t repay the loan on time, mPokket may charge you a late payment fee. Moreover, it will reflect on your credit score, which might harm your chances of availing loans later on.