Loan settlement means closing your loan by paying a smaller amount than what you actually owe. This happens when you can’t pay the full loan due to money problems. The bank or lender agrees to take a part of the money and close the loan. It may sound helpful, but it can hurt your credit score. The lender will mark your loan as “settled,” which shows that you didn’t pay the full amount. This can make it harder to get a loan in the future. Before choosing loan settlement, try other ways to pay, like asking for more time or smaller EMIs. Only choose loan settlement if you have no other option. It’s always better to pay your loan on time to keep a good credit record. Visit here - https://www.everydayloanindia.com/blogs/what-is-loan-settlement/