Closing a loan or settling your debt becomes a practical choice if you can make full payments or negotiate with the bank to pay around 80% of the total amount in affordable installments. This approach is especially advisable for smaller loan amounts. In simpler terms, if you can work out a deal with the bank to pay a significant portion of your loan in a manageable way, it’s a recommended option for closing the debt.
‘Settlement of loan’ and ‘loan closing’ may sound alike, but they mean different things. When you faithfully pay all your monthly installments according to the schedule or an agreed-upon plan after negotiations, the lender officially closes your loan account. This is what we call “loan closing.” So, in simpler terms, loan closure happens when you complete all your payments as agreed with the lender.
In Settlement of loan you pay the lender an amount that is less than what you owe on the loan. If the lender agrees, you might be able to settle the loan for a much lower amount than the total outstanding balance. In simpler terms, loan settlement involves reaching an agreement with the lender to pay a reduced sum to settle the debt.
Impact of closing the debt:
- It will improve your credit score
- Banks will be more willing to lend to you further loans
- Banks may waive interest & penalties
How we can help you:
Negotiating directly with the bank can be a viable solution for certain borrowers facing debt issues. Nevertheless, engaging in discussions with the bank becomes challenging when missed payments have occurred, and relentless recovery agents are persistently calling or appearing at your doorstep.
If you find yourself unable to manage the situation, there’s no need to worry, because there is help available from Settlementofloan.com. Our legal and financial experts can handle negotiations with the bank on your behalf and ensure protection from any kind of harassment throughout the process.
