Settle Loan

Settle Loan: debt settlement advisory in India since 2019

Settle Loan is an Indian company specialising in debt settlement and financial relief. Since 2019, it has offered guidance to borrowers facing financial difficulties to negotiate with their creditors the partial forgiveness of personal loans, credit card debts and other types of credit. The company also provides support against harassment by collection agents.

Its activity is aimed at people with payment problems arising from situations such as job loss, medical emergencies, business losses or reduced income. The approach combines legal and financial advice to reach reduced payment agreements, known as one time settlement (OTS), and to protect the debtor's rights during the process.

Debt settlement and relief services

The company structures its offering into several specific services:

• Personal loan settlement: negotiation with the creditor to agree a payment lower than the original balance.
• Credit card debt settlement: management of debts with high interest rates and additional charges.
• Anti-harassment service: support for borrowers who suffer harassment from recovery agents, despite the Supreme Court judgments and Reserve Bank of India (RBI) guidelines that prohibit it.
• Credit score improvement: support from a senior credit counsellor over a period of 3 to 6 months or more, as needed, to implement strategies that gradually improve the score.
• Home loan settlement: agreement with the lender to pay off the outstanding balance of a housing loan.
• Vehicle loan settlement: negotiation of the early repayment amount of a car loan.
• Education loan settlement: negotiation of repayment terms with the financial institution when the borrower cannot meet the obligations.

How the settlement programme works

The process proposed by Settle Loan is carried out in several stages. First, the interested party contacts a financial advisor to review their loans and instalments, and to assess their eligibility. They then formalise their enrolment in the programme through a contract that details the fees and the negotiation process. Next, the client accumulates funds in a savings account; when the amount is sufficient, the team of legal advisors begins negotiations with the creditors. The prior assessment of income and debts determines the most suitable programme for each case. Once the agreement is reached, the borrower receives a settlement letter and can move towards a debt-free life.

Benefits declared by the company

According to its presentation, the programme makes it possible to reduce the total amount of the debt, even after paying the fees. The company states that its clients take an average of 24 months to get out of the debt trap, a period they consider faster than they would have without the programme. In addition, they offer the handling of calls and harassment situations, so that the client can refer the collectors' communications to their team.

Indicators and client experience

The website shows management figures: more than 165,000 clients, more than 48,400 million rupees in managed debt (expressed as 3,100 crore) and 98% satisfied clients. It also includes testimonials from people in New Delhi, Bengaluru, Kolkata, Noida and Mumbai describing their experience with personal loan settlement, negotiation with banks such as HDFC and the support received against harassment by recovery agents.

Frequently asked questions about the service

The company clarifies that it can manage both secured and unsecured loans, including personal, credit card, business, home, vehicle and education loans. Approval depends on the lender, the debtor's financial situation and the loan terms. The duration of the process varies according to each case.