Increase in number of borrowers seeking loan settlement assistance

The Covid-19 pandemic has caused a lot of suffering in India, not only in terms of health but also in terms of jobs and financial security. Millions of people have lost their jobs and many are still reeling from the aftermath.

One of the consequences of the massive job losses was that borrowers were unable to pay their outstanding credit cards or EMI loans. Although the RBI authorized a temporary moratorium, it did not solve the long-term problem for many borrowers.

In this scenario, one company stood out by coming to the aid of thousands of unhappy consumers who were unable to pay their debts: It is led by a group of experienced entrepreneurs who are alumni of IIT, IIM and MIT USA and have over 30 years of experience in different fields including financial services, consulting and debt advice.

This company helps consumers stuck in the debt trap to get out of their financial difficulties by providing legal support and helping them negotiate and settle with banks or NBFCs. Their loan settlement services mainly deal with unsecured debts such as credit card loans or personal loans and even unsecured business loans.

How does loan settlement work?

The borrower must first register on with some basic information. After that, the company’s expert team analyzes the case and decides whether loan settlement is possible in that particular case. If so, they sign a detailed agreement and then start negotiating with the lender on the borrower’s behalf for waiver of late fees, interest rates, and even the principal amount. The process usually takes three months or more depending on the size of the loan and the number of lenders.

They also help the borrower to get a realistic repayment plan that is affordable and does not impose any additional financial burden on the borrower. After all the necessary paperwork is done, they finally settle the loan on behalf of the borrower, usually at around 50% or less. The settlement percentage depends on loan size, default history, lender policies, etc.

What are the benefits of using loan settlement services?

There are many advantages to using loan settlement services. First of all, it takes a huge burden on the shoulders of the borrower. The whole process is handled by experienced professionals who know how to negotiate with lenders.

Another big advantage is that borrowers can save a lot of money by using these services. This is because experts can get waiver on late fees, interest rates and up to 50% of the principal amount. This can help borrowers save lakes of rupees that they would otherwise have to pay.

Finally, the use of these services also helps to improve the borrower’s credit rating in the long run. This is because when a loan is settled, it is marked as “settled” on the borrower’s credit report. This is much better than “default” which has a very negative impact on credit rating.

Is it advisable to seek professional help in loan settlement?

If you’re having trouble paying your credit card dues or EMI loans, it’s a good idea to seek professional help instead of trying to do it yourself. This is because the whole process can be very complicated and stressful. Also, if you make mistakes, it can lead to further financial hardship.

It is well known that in India, if you do not repay your loan, debt collectors will follow you and your life will be miserable, despite numerous Supreme Court rulings and RBI guidelines prohibiting the use of heavy-handed tactics for recovery. In this scenario, a company like can be very helpful as they not only negotiate with the bank, but also provide you with legal support to stop any harassment that may arise during this process.

If you need help settling a credit card loan or personal loan, you can visit their website and provide some details so that their legal and financial advisors can understand your case and provide you with the appropriate assistance.

Disclaimer: No Deccan Chronicle reporter was involved in the creation of this content. The group also declines all responsibility for this content.

Dorothy H. Lewis