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Our team provides specialized services for loan settlement, ensuring a hassle-free and secure process. We handle negotiations, documentation, and legal formalities to help you settle your loans efficiently.
Connect with our financial advisor to discuss your loans and EMIs and check your eligibility for loan Settlement, and take the first step towards becoming debt-free.
Our Financial Advisor will conduct an evaluation of your income and debt status to determine your eligibility for a settled loan program that is best suited to your unique needs.
Connect with our financial advisor to discuss your loans and EMIs and check your eligibility for loan Settlement, and take the first step towards becoming debt-free.
In this process, we aim to negotiate the best possible Settlement plan with the creditor(s) and repay the Settlement amount, which is a more feasible amount than the total amount owed.
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Credit card debt incurs a higher interest rate and additional fees, making it challenging to repay the debt. These extra interest charges contribute to an escalation of the debt amount, in addition to causing financial strain. Furthermore, it impedes one's capacity to save and invest the available funds.
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Home loan Settlement occurs when the borrower and lender reach an agreement to pay off the remaining loan balance. This typically happens in situations where the borrower is unable to keep up with the loan payments. In some rare cases, lenders may even offer financial incentives to borrowers who opt to settle their debt.
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The vehicle loan Settlement is the amount required to pay off an existing vehicle loan fully. Often used interchangeably with "payoff amount," vehicle loan Settlement is typically presented as time-sensitive quotations that can fluctuate from one day to the next.
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Education loan Settlement refers to engaging in negotiations with a lending institution to arrive at mutually agreed-upon terms for repayment of an education loan. In situations where borrowers are experiencing financial hardship and cannot fulfil their loan obligations, they may consider exploring the option of loan Settlement to resolve their outstanding debt.
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Harassment by recovery agents is quite common in India, despite several Supreme Court judgments and RBI guidelines prohibiting harassment of borrowers. Our Anti-harassment Strategy is available to assist in such situations. Please read on to learn more about how we can help.
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Improving credit score is not an overnight task. As part of the process, we will provide you with the support of a senior credit counsellor who will guide you through a period of 3-6 months or longer if necessary. Their expertise will help you make informed decisions and implement effective strategies to improve your credit score gradually.
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with our settleloan program you can save a lot on your total outstanding debt, including paying our fees you can save some of the outstanding debt that you owed from the lenders.
It takes an average of 24 months for our customers to become free from debt trap which they cannot pay even in 5 yrs. Our Settlement program is the fastest process to become debt-free.
Our Settlement program will also help you to live a stress-free life as you can forward all your lender’s calls to our team to handle all harassment calls.
Our experienced property lawyers provide end-to-end legal assistance in property registration, ensuring a smooth and hassle-free process.
First-time buyers are at high risk of fraud. We help in detecting forged documents, disputed ownership, and unauthorized sales.
We handle all interactions with Sub-Registrar Offices, Revenue Departments, and other authorities, ensuring quick and lawful registration.
If the property has any pending disputes, encumbrances, or third-party claims, we provide expert legal assistance to resolve them.
Our client-centric approach ensures honest advice, timely execution, and complete transparency throughout the process.
Dive into our blog for the latest insights, tips, and trends. Stay informed and inspired by our expert articles on various topics that matter to you.
Repaying a loan is a significant financial milestone. However, the journey doesn’t end with the final payment. Ensuring you collect all pertinent documents post-repayment is crucial to safeguard your financial interests and legal rights. This guide outlines the essential documents you should collect after loan repayment, incorporating the Reserve Bank of India’s (RBI) guidelines and relevant legal considerations.📄 1. No Objection Certificate (NOC)The NOC is a formal declaration from the lender stating that you’ve repaid the loan in full and that there are no outstanding dues. This document is vital as it serves as proof of loan closure and is often required for future financial transactions or legal purposes.🏠 2. Original Property DocumentsIf you’ve taken a secured loan, such as a home loan, the bank would have retained original property documents as collateral. Post-repayment, it’s imperative to retrieve:• Title deeds• Sale agreements• Property tax receipts• Encumbrance certificates These documents are essential for establishing ownership and for any future property transactions.🔓 3. Lien Release LetterA lien is a legal claim or right against a property. Upon loan repayment, the bank should provide a lien release letter, confirming that the lien on your property has been removed. This is crucial for updating property records and ensuring clear ownership. 📑 4. Loan Account StatementRequest a comprehensive loan account statement detailing all transactions, including:• EMI payments• Interest charges• Penalties (if any)• Final settlement details This statement serves as a financial record and can be useful for tax purposes or future financial planning.🧾 5. Post-Dated Cheques (PDCs) and ECS DeactivationIf you’ve provided PDCs or set up Electronic Clearing Service (ECS) mandates for EMI payments, ensure:• Retrieval of any unused PDCs• Deactivation of ECS mandatesThis prevents any unintended debits from your account post-loan closure. 🚗 6. Form 35 (For Vehicle Loans)For vehicle loans, the bank registers a hypothecation on your vehicle’s Registration Certificate (RC). Post-repayment, collect Form 35 and the NOC from the bank to remove the hypothecation from the RC at the Regional Transport Office (RTO).📊 7. Updated Credit ReportAfter loan closure, obtain your credit report from credit bureaus like CIBIL, Experian, or Equifax to ensure:• The loan is marked as ‘Closed’• There are no outstanding duesA clean credit report is essential for maintaining a good credit score and for future loan approvals.🏛️ RBI Guidelines on Document ReturnThe RBI has mandated that banks and Non-Banking Financial Companies (NBFCs) must return all original movable or immovable property documents within 30 days of full loan repayment. Key Points:• Timeline: 30 days from the date of loan closure.• Penalty for Delay: Banks are liable to pay ₹5,000 per day for delays beyond the stipulated period.• Loss or Damage: In case of loss or damage to original documents, banks must assist borrowers in obtaining certified duplicates within 30 days. ⚖️ Legal ConsiderationsIt’s essential to be aware of your legal rights concerning loan closure:• Equity of Redemption: As established in the case of Vernon v Bethell, borrowers have the right to reclaim their property upon full repayment of the loan.• Right to Information: Under the Right to Information Act, borrowers can request information regarding their loan accounts and related documents. ✅ ConclusionCollecting all relevant documents after loan repayment is not just a procedural formality but a crucial step in ensuring your financial and legal security. Adhering to RBI guidelines and understanding your rights can help you navigate this process smoothly.Always maintain both physical and digital copies of these documents for future reference.For more insights on financial management and legal rights, stay tuned to our blog.
Read MoreA: No. Loan closure happens after full repayment, while loan settlement involves a compromise on the outstanding amount.
A: When facing severe financial hardship like job loss, health issues, or business failure, and unable to repay the loan in full.
A: Yes, it negatively impacts your credit score as it’s reported as “settled” instead of “closed.”
A: Yes, if proper documentation isn’t executed, banks may pursue legal action. Legal assistance ensures protection.
A: Loan agreement, ID proof, bank statements, notice copies, correspondence with the lender, and income proof.
A: Yes, to ensure proper negotiation, legal documentation, and protection from future liabilities.
A: A written agreement from the lender acknowledging the mutually agreed settlement amount and confirming no future claims.
A: Harassment is illegal. KHA ADVOCATES helps protect your rights and take legal action if required.
A: It is a certificate issued by the lender confirming full and final settlement of dues.
A: It’s a criminal offense. We help file police complaints or court cases against such conduct.
A: If a proper settlement is not documented, yes. Legal guidance ensures settlement is final and enforceable.
A: Yes. We provide stay orders, file objections, and negotiate legally.
A: Yes, we appear before DRT, DRAT, consumer forums, civil courts, and High Courts.
A: We can help challenge it legally and explore negotiated settlement options.
A: Yes, we guide in applying for OTS and negotiating with banks/NBFCs.
A: Yes, through legal negotiation and representation.
A: Yes, we evaluate restructuring, deferment, or moratorium options.
A: Yes, but proper documentation and lawyer verification are essential.
A: Yes, we specialize in representing NRIs and foreign clients remotely and in court.
A: Yes, we handle cases involving NBFCs, digital lenders, and unregulated fintech apps.
KhA Advocates is a premier law firm in Kolkata, West Bengal known Internationally, providing expert legal services in property registration, corporate law, matrimonial law, taxation, dispute resolution, and more. We offer tailored legal solutions for NRIs, businesses, and residents, ensuring 100% compliance and protection. With our efficient, transparent, and reliable approach, we safeguard your legal interests.