While the RBI did allow a temporary moratorium, it did not solve the long term problem of many borrowers
The Covid-19 pandemic caused a lot of suffering in India, not only in terms of health but also in terms of jobs and financial security. Millions of people lost their jobs and many are still reeling under the after affects.
One of the consequences of massive job losses was that borrowers were unable to pay their credit card outstandings or loan EMIs. While the RBI did allow a temporary moratorium, it did not solve the long term problem of many borrowers.
In this scenario, one company stood out in terms of coming to the rescue of thousands of hapless consumers who were not able to pay their debts: Loansettlement.com. It is run by a group of experienced entrepreneurs who are alumni of IIT, IIM and MIT USA and have more than 30 years of experience in different domains including financial services, debt counseling and consulting.
This company helps consumers who are stuck in a debt trap to come out of their financial difficulty by providing them legal support and helping them in negotiating and settling with the banks or NBFCs. Their loan settlement services are mainly for unsecured debts like credit card loans or personal loans and even unsecured business loans.
How does loan settlement work?
The borrower first needs to register on loansettlement.com with some basic information. After that, the company's team of experts analyze the case and decide whether loan settlement is possible in that particular case. If it is, they sign a detailed agreement and then start negotiating with the lender on behalf of the borrower to get a waiver on late payment charges, interest rates and even the principal amount. The process usually takes three months or more depending on loan size and number of lenders.
They also help the borrower to get a realistic repayment plan which is affordable and does not put any further financial burden on the borrower. After all the necessary paperwork is done, they finally settle the loan on behalf of the borrower, generally at about 50% or less. The settlement percentage depends on loan size, default history, lenders policies etc.
What are the benefits of using loan settlement services?
There are many benefits of using loan settlement services. First and foremost, it takes a huge burden off the borrower's shoulders. The entire process is handled by experienced professionals who know how to negotiate with lenders.
Another big benefit is that borrowers can save a lot of money by using these services. This is because the experts at loansettlement.com are able to get a waiver on late payment charges, interest rates and upto 50% of the principal amount. This can help borrowers save lacs of rupees which they would otherwise have to pay.
Lastly, using these services also helps improve the borrower's credit score in the long run. This is because when a loan is settled, it is reported as 'settled' on the borrower's credit report. This is much better than 'default' which has a very negative impact on the credit score.
Is it advisable to seek professional help in loan settlement?
If you are struggling to pay your credit card dues or loan EMIs, it is advisable to seek professional help instead of trying to do it on your own. This is because the entire process can be very complicated and stressful. Also, if you make any mistakes, it can lead to further financial difficulties.
It is well-known that in India, if you fail to make loan repayments, recovery agents will follow you and your life will be miserable, despite numerous Supreme Court rulings and RBI guidelines prohibiting the use of strong-arm tactics in recovery. In this scenario, a company like loansettlement.com can be really helpful as they not only negotiate with the bank but also provide you legal support to stop any harassment that may happen during this process.
If you need any help in credit card loan settlement or personal loan settlement, you can check their website and provide some details so that their legal and financial advisors can understand your case and provide you the relevant assistance.
Disclaimer: No Asian Age journalist was involved in creating this content. The group also takes no responsibility for this content.