Loan settlement means closing a loan by paying less than what you actually owe. This usually happens when someone cannot repay the full loan amount due to problems like job loss or illness. In this case, the bank agrees to take a smaller amount to settle the loan.
While this can reduce your money burden, it affects your credit score. Your loan is marked as “settled” instead of “closed,” which can make it harder to get new loans in the future. Before going for loan settlement, try other options like reducing EMIs or asking for more time to pay. Always talk honestly with your lender. Loan settlement should be your last option. It’s important to think about how it will affect your future credit.
Visit here - https://www.everydayloanindia.com/blogs/what-is-loan-settlement/
While this can reduce your money burden, it affects your credit score. Your loan is marked as “settled” instead of “closed,” which can make it harder to get new loans in the future. Before going for loan settlement, try other options like reducing EMIs or asking for more time to pay. Always talk honestly with your lender. Loan settlement should be your last option. It’s important to think about how it will affect your future credit.
Visit here - https://www.everydayloanindia.com/blogs/what-is-loan-settlement/
Loan settlement means closing a loan by paying less than what you actually owe. This usually happens when someone cannot repay the full loan amount due to problems like job loss or illness. In this case, the bank agrees to take a smaller amount to settle the loan.
While this can reduce your money burden, it affects your credit score. Your loan is marked as “settled” instead of “closed,” which can make it harder to get new loans in the future. Before going for loan settlement, try other options like reducing EMIs or asking for more time to pay. Always talk honestly with your lender. Loan settlement should be your last option. It’s important to think about how it will affect your future credit.
Visit here - https://www.everydayloanindia.com/blogs/what-is-loan-settlement/
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