Settling a loan can save you 40–70% of your outstanding—but only when done correctly. Here are the biggest mistakes people make while trying to settle loan, and how to avoid them.
1. Negotiating with Recovery Agents Instead of Bank
Recovery agents cannot approve settlements.
This leads to:
❌ Fake promises
❌ Wrong amounts
❌ No legal letter
Always speak only to:
✔ Collection manager
✔ Nodal officer
✔ NBFC head office
2. Settling Loan Without Written Approval
A verbal approval is useless.
Always get:
- Settlement letter
- Validity date
- Waiver details
3. Paying Agents in Cash
This is risky because:
❌ Money may not reflect in loan account
❌ No proof
❌ Potential fraud
Pay only through official channels.
4. Not Checking CIBIL After Settlement
Sometimes, banks update your loan wrongly.
This affects:
- Future loans
- Creditworthiness
- Employment in finance sector
Fix your Credit Score — https://guardianfinancialexperts.com/csbp.html
5. Not Knowing RBI Rules
Many borrowers tolerate harassment without knowing their rights.
Refer RBI guidelines here:
https://www.rbi.org.in
6. Settling Loan Without Expert Support
A Loan Settlement Expert can reduce your payable amount by 30–70% more than you might negotiate alone.
Loan Settlement Services:
https://guardianfinancialexperts.com/lss.html
7. Not Keeping Track of EMI History
A bank will negotiate better if you provide:
- Bank statements
- Income proofs
- Hardship documents
Conclusion
Avoid these mistakes to safely settle loan and close your debt legally.
Need professional help?
https://guardianfinancialexperts.com/contact.html