Loan settlement allows you to repay part of the loan, and the bank forgives the rest, offering relief in tough financial times.
Consider settling if facing job loss, medical emergencies, or financial hardships, but it can hurt your credit score in the long term.
-Assess finances. -Contact IDFC. -Provide hardship proof. -Negotiate terms. -Finalize settlement & get No Dues Certificate.
Settling a loan affects your credit score, marking it "settled" instead of "closed" and making future loans harder to get.
Consider loan restructuring, EMI moratoriums, debt consolidation, or borrowing from family/friends to avoid settling and protect your credit.
Weigh all options, talk to the bank, and understand the long-term impact of settling before making a decision.