Introduction

Have you also taken a personal loan but cannot repay it for some reason? Then don't worry! Personal Loan Settlement is a better solution for you. Know complete information related to it.

What is Personal Loan Settlement?

When you are unable to repay the entire loan amount, the bank gives you the option to settle by giving a reduced amount. This is called a Personal Loan Settlement.

Reasons for Personal Loan Settlement

- Financial crisis (Income loss, job loss) - Sudden big expense (Emergency expenses, medical bills) - Inability to repay the loan

- Contact the bank - Explain your financial situation - Ask for a settlement offer - Pay a discounted amount - Get NOC (No Objection Certificate)

Process of Loan Settlement

- Get rid of outstanding debt - Protection from legal proceedings - Mental peace

Benefits of Personal Loan Settlement

- CIBIL score drops - It may be difficult to get a loan in the future - Relationship with the bank gets affected

Disadvantages of Personal Loan Settlement