‘Loan settlement’ is a phrase that is often mistaken for ‘loan closure’. But they are not the same. If you pay off all your monthly installments on time and complete repayments as scheduled, the lender will close the loan account; this is ‘loan closure’. This information shall then, sent to your credit rating agencies and, it may reflect a positive impact on your score as you have successfully paid the loan off.

But what is Loan Settlement?

The loan settlement scenario can be where you have taken a loan from a lender and, now you are genuinely incompetent to make repayments due to an illness, injury, job loss, or any other cause. In this case, you notify the lender of your condition and request them to give some time off before you begin repayments.

The lender may furnish you a one-time settlement option where you take some time off and later, settle the loan in one go. Since you are getting some time, you may readily accept this offer. When you decide to settle off the loan in one go later, the loan status record as ‘settled’ in the credit report.

Alpheus Associates is known to be among the premium debt settlement companies in India. Since the start, we have focused ourselves on assisting the debt-ridden and, clients unable to honour their promise of repayment due to some issues. With our excellent team of lawyers and advisors for the vehicle, education, home, business and personal loan settlement, we have the resources to broadly work on cases and get oneself out of debt as early as possible.