If your loan is overdue for 90+ days, the bank marks it as NPA (Non-Performing Asset).
Most borrowers panic:
👉 “Can I still settle loan after NPA?”
👉 “Will legal action begin?”
👉 “Will they seize my property?”
This blog explains everything about settling loan after NPA.
1. What Is an NPA Loan?
A loan becomes NPA when:
- EMI unpaid for 90+ days
- Bank classifies it as high risk
- Recovery team takes over
2. Can You Settle Loan After NPA? YES.
In fact, NPA accounts get the best settlement offers because:
✔ Bank wants fast recovery
✔ Bank cannot keep provisioning losses
✔ Legal action is expensive
✔ Recovery cost increases
Learn full settlement process:
https://guardianfinancialexperts.com/lss.html
3. How Much Settlement Is Possible After NPA?
Typical NPA settlement percentage:
- Personal Loans: 20% – 40%
- Credit Cards: 10% – 35%
- Business Loans: 25% – 50%
Banks prefer lump-sum settlements after NPA.
4. What Are Your Legal Rights After NPA?
Banks cannot:
❌ Harass
❌ Call after 7 PM
❌ Threaten workplace
❌ Visit without notice
RBI Guidelines:
https://www.rbi.org.in/Scripts/NotificationUser.aspx
If they violate laws:
File complaint: https://cms.rbi.org.in/
5. How to Start NPA Settlement
✔ Step 1: Ask for Total Outstanding
Including principal, interest, and penalties.
✔ Step 2: Check Your Financial Hardship
Provide documents.
✔ Step 3: Propose Your Settlement
Offer 10–40%.
✔ Step 4: Negotiate Final Amount
Experts can reduce it further.
✔ Step 5: Get Settlement Letter
Must mention final dues and NOC.
✔ Step 6: Pay Only in Official Account
Never to agents.
Safe settlement help:
https://guardianfinancialexperts.com/contact.html
6. Impact on CIBIL & How to Fix It
NPA + settlement will reduce CIBIL.
But you can rebuild it in 6–18 months.
CIBIL Score Check:
https://www.cibil.com/credit-score
Improve CIBIL:
https://guardianfinancialexperts.com/csbp.html
7. Is Legal Action Possible After NPA?
Yes, but usually avoidable with negotiation.
Settlement avoids:
- Arbitration
- Lok Adalat
- Court cases
- Field recovery
Conclusion
NPA is not the end—it’s the best time to settle loan with major waivers.
Act quickly, negotiate smartly, and always work with experts.