Skip to content
SahiSujhav — Loan transparency and borrower rights platformSahiSujhav
Back to Know more

Loan Settlement Process Step-by-Step

Contact the lender, explain hardship, negotiate the settlement amount, get the agreement in writing, pay, and collect a settlement letter. Then verify your credit report.

  1. Contact the lender and explain your financial difficulties.
  2. Request a settlement offer.
  3. Negotiate the settlement amount.
  4. Obtain the agreement in writing before paying anything.
  5. Pay the agreed amount through traceable channels (bank transfer / cheque).
  6. Collect a settlement letter or No Dues Certificate.
  7. Verify that the settlement status is updated correctly in your credit report.

Never pay cash without written confirmation, and never trust verbal assurances of 'closure' if the letter says 'settled'.