Loan Settlement: Process, Benefits & Risks

Loan Settlement is when a borrower pays a part of the owed amount to settle their loan with the bank.

It helps reduce the financial burden but may impact your credit score, making future loans harder to get.

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The process involves negotiating with the bank to pay a lower amount than the total debt owed.

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Benefits include reduced pressure and mental peace, but be aware of potential long-term consequences.

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Eligibility requires inability to repay the full loan, often due to income loss or emergency situations.

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Weigh the pros and cons before opting for Loan Settlement, as it may affect your financial future.

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