Can't pay your loan EMIs in time and need some relief?
We can help you in debt closure without any impact on credit score.
Debt closure or loan closure is a viable option if you can pay the full amount or say 80% of the amount in installments that are affordable to you and can be negotiated with the bank. It is a recommended option for smaller loan amounts.
If you qualify for debt closure, our financial & legal advisors will help you to close your unsecured loans like credit card dues and personal loans over 3-4 months.
'Loan settlement' is a phrase that is frequently confused with 'loan closure'. They are, however, not the same. If you pay off all of your monthly installments as scheduled or as mutually agreed after negotiation, the lender will close the loan account; this is referred to as "loan closure".
'Loan settlement' on the other hand refers to a process where you pay the lender an amount less than the outstanding loan. If your lender agrees, you can make a settlement in many cases at more or less 50% of the outstanding balance.
Debt closure is possible if you have the financial ability to repay your loan and keep aside a lump sum amount for monthly installments. The bank will check your repayment ability to confirm that you are able to keep aside a lump sum amount every month. If you are not able to pay off the entire loan or what is negotiated with the bank, then debt closure is not possible and you should instead consider debt settlement.
If you have closed your debt in full, i.e., paid off the entire amount that was due, it becomes easier to improve your credit score. And banks will be more willing to lend to you if you have paid off the entire debt.
Debt closure does not reduce your credit score as you have either paid in full or the bank has agreed on a lower amount for closure by waiving interest or penalties. In either case, it does not affect your credit score and helps you in the long run.
Some borrowers can resolve their debt problems by negotiating directly with the bank. However, it is not easy negotiating with the bank when you have missed payments and recovery agents are continuously calling you or are at your doorstep.
If you are unable to the situation, you need not worry because there is help available from Loansettlement.com. Our legal and financial team can negotiate with the bank on your behalf as well as provide protection from any illegal harassment during the process.