Struggling with an HDB personal loan? Settle it by paying a lump sum, reducing debt and avoiding interest buildup.
Review your loan agreement, check for prepayment charges, and contact customer service for the outstanding amount before settling.
Request a No Objection Certificate (NOC) after paying the lump sum. This confirms loan closure and prevents credit score damage.
Loan settlement helps reduce debt, prevents defaulters' risk, but may slightly lower your credit score due to "settled" status.
Ensure the settlement terms are in writing. Pay the agreed amount on time, and keep documents for future reference.
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Improve your credit score post-settlement by paying bills on time, managing credit wisely, and staying debt-free.