Indiabulls Dhani Personal Loan Foreclosure and Settlement

Foreclosure is paying off the entire outstanding balance of a loan before its end date. Nothing is left to repay afterwards, and the loan is meant to show as closed.

On the name: per its published releases, Dhani Loans and Services Limited is an RBI-registered NBFC (non-bank loan company) that was formerly called Indiabulls Consumer Finance Limited. That is why people search for both names. Whatever you call it, check the company name on your own loan agreement, because that is the document that decides your terms.

There are three ways to end a loan early, and they are often mixed up.

• Foreclosure: you pay everything you owe now.

• Part-payment: you pay some of the balance, and the loan carries on.

• Settlement: you pay less than you owe because full repayment is not possible.

This page is mainly about foreclosure. Settlement has its own page, linked later.

Most readers arrive with one question: what will it cost me to do this? The next section answers that without quoting a figure, because the right number sits in your documents. If you are new to the loan type itself, see secured and unsecured personal loans. To learn how foreclosure sits against your score, read Can loan foreclosure impact your credit score.

No Dhani figure is quoted here. Whether a charge applies depends on your loan, and the answer is in your sanction letter, loan agreement and Key Fact Statement. What can be explained is the RBI rule that sits behind it.

RBI circular RBI/2025-26/64 (2 July 2025) sets the position in three parts.

1. Floating-rate personal loans. For loans to individuals taken for purposes other than business, no prepayment charge can be levied on a floating-rate loan. This applies to loans sanctioned or renewed on or after 1 January 2026.

2. Fixed-rate loans. The circular does not address them directly. Whether a charge applies follows the company’s approved policy, and it must have been disclosed in the sanction letter, the loan agreement and the Key Fact Statement (KFS, the one-page summary of loan costs).

3. How a charge is worked out. Where a charge is levied on a term loan, it must be based on the amount being prepaid.

The circular also says a prepayment charge that was not disclosed in this way cannot be charged. So a new charge cannot appear later.

Before you ask for a statement, answer two questions. Is my loan fixed or floating? And when was it sanctioned or renewed? If it was sanctioned before 1 January 2026, the ban does not automatically apply, and your agreement decides. If you cannot tell from your papers, ask Dhani in writing.

Keep a copy of the page that mentions prepayment, and note the date you asked for the statement. If the figure on the statement includes a charge you did not expect, that page is what you will point to.

For help reading the cost page of your agreement, see APR in a loan, explained.

No Dhani-published foreclosure steps were found, so the order below is the standard method. Confirm with Dhani which channel it uses for requests and payment.

1. Check your agreement for the loan type and any charges. It tells you whether a prepayment charge can apply.

2. Check that you can afford it without draining your savings. The EMI Score tool shows how much of your pay your EMIs take.

3. Ask Dhani for a foreclosure statement through its official app or support. Ask for the validity date and the full break-up.

4. Check the statement against your own records. Compare it with your EMI history and the checklist in the next section.

5. Pay the exact amount through the channel Dhani names. Do not pay through a link from an unknown number.

6. Save proof of payment. Keep the receipt, the bank entry, and the statement.

7. Ask for the closure letter and NOC. The section on documents below lists what to collect and check.

Two small habits make this smoother. Ask for the statement in writing or through the app, so there is a record of the date and the figure. And ask the same day you plan to pay, because the amount is only valid up to its stated date and interest keeps accruing until then.

To see what you still owe before you ask, follow how to check your EMI status. To understand how the interest in each EMI is built up, read how banks calculate your EMI.

The statement is the document you pay against, so read it line by line before you transfer anything. A good one shows these.

• Loan account number and your name: so you know it is the right loan

• Outstanding principal: the part of the loan not yet repaid

• Interest accrued up to the validity date: interest earned so far, not future interest

• Any prepayment or foreclosure charge, with the reason: it should match your agreement

• Any overdue or penal charges: these must match what your agreement and reminders disclosed

• Taxes, if any: shown separately

• The total to pay: one clear figure

• The date until which the amount is valid: after it, the figure can change

An illustrative example. Say ten EMIs of ₹6,000 remain. Paid over time, that is ₹60,000 (₹6,000 x 10). If the statement shows ₹55,000, paying early saves about ₹5,000. The real figure depends on your loan, so use this only to see how the comparison works.

Watch for two things in particular. First, a charge that your agreement does not mention. Second, an overdue amount that you believe you already paid. Compare both with your EMI history before you transfer money.

If any line is unclear, ask in writing. Then pay only the stated total, within the validity date. For how penal charges are meant to be disclosed, see what happens when an EMI bounces, and RBI’s rule that penal charges must be stated in the agreement and in reminders (RBI/2023-24/53, paras 3(vi) and 3(vii)).

Payment is not the end. These papers are your proof that the loan is over.

• A closure or foreclosure confirmation letter: it should state that nothing is owed.

• The NOC (no objection certificate): a letter that the company has no claim left on you.

• A loan statement showing a zero balance: the last page of the story.

• Written confirmation that the auto-debit mandate is cancelled: so no debit runs by mistake.

• A copy of your updated credit report: once the company reports the closure.

An unsecured personal loan has no property papers to return. So the closure letter and NOC are your proof. Keep both safe, in paper and as scans.

Watch your bank statement for the next two EMI dates to confirm no debit happens. Then check your credit report, which you can do free by following how to check your credit score with a PAN card. For what the letter is and why it matters, read what a CIBIL clearance letter is.

No date is given for the NOC, since none could be confirmed. If it does not arrive, follow the next section.

This happens often enough to be worth planning for. The National Consumer Helpline dashboard shows 198 grievances against Dhani Loans and Services between 1 January and 10 September 2025. Of those, 50 were about a loan still showing in the CIBIL report with no dues, 12 were about the NOC not being provided after full payment, and 11 were about excess amounts charged during foreclosure or completion.

These are complaints received, not findings against the company. They do show where borrowers tend to get stuck, which is why the steps below are worth following.

1. Write to Dhani with proof of payment. Attach the receipt and the closure letter, and ask for an update.

2. If it is not fixed, use Dhani’s grievance route. Use the one published on its website and in your loan documents.

3. If it is still unresolved, use RBI’s Integrated Ombudsman Scheme where it covers the company. See the RBI notification.

There is also an RBI rule on wrong credit information. Under RBI/2023-24/72 (26 October 2023), if a complaint about credit information is not resolved within 30 days, the complainant is entitled to ₹100 per calendar day. The 30 days run from the date the complaint was first filed. The company that lent to you has 21 days to send corrected data to the credit bureau, and the bureau has the rest of the 30 days.

To raise a dispute with the bureau, see how to raise a CIBIL report dispute and how to correct CIBIL score errors. Keep every email and reference number.

The three options suit different situations. This table sets them side by side.

Rates and ranges shown are indicative. Final terms decided by the bank. FREED is not a Loan Provider. No outcome is guaranteed. Please verify directly with your bank.

Settlement is not something a borrower chooses out of preference. Banks and financial companies only consider it when you are in genuine financial difficulty and are truly unable to repay the full amount. A waiver of up to 50%* may be possible, but the process takes time and the final terms are decided by the company.

For the steps in a Dhani settlement, read Dhani loan settlement. For the general idea, see one-time settlement and how to negotiate a personal loan settlement.

*Up to 50% is indicative and not guaranteed. It depends on the company and your situation.

Here is the honest answer. Foreclose only if you can pay from money you can spare. Do not pay from your emergency cushion, and do not take a new loan to do it.

Three checks help you decide.

• How much interest you actually save. Read it off the statement. Do not guess.

• Whether you would still have a few months of expenses saved afterwards. A loan is gone, but so is your safety net if you drain it. See why an emergency fund matters.

• Whether other loans cost more. Clearing the costliest loan first often helps more.

Take a take-home pay of ₹45,000 and EMIs of ₹25,000 across three loans. That is about 56% of income (25,000 / 45,000 = 55.6%). Illustration only. The comfort line is 50% of take-home pay. Clearing one loan may free some room, but only if your savings stay intact. For more on this, read how EMI burden is measured.

If you are stretched across several loans, consolidation is one option, where one new loan pays off the others. Read what debt consolidation is. Debt consolidation may help borrowers combine multiple eligible loans into a single repayment. However, applying for a consolidation loan may involve a credit enquiry and opening a new credit account, which can temporarily affect the borrower’s credit score. Over time, consistent repayments and responsible credit management may support credit-score improvement, but no particular outcome is guaranteed.

A simple test: if paying off this loan would leave you borrowing again next month, it is not the right time. If it would leave your savings and your monthly budget intact, it probably is.

Consolidation is for people who are still repaying. If you have already missed many EMIs, talk to a counsellor first.

Foreclosing is something you can do directly with the company. FREED’s role starts where the budget is tight. There are two paths, depending on where you stand.

If you are still paying but stretched. The FREED Loan Consolidation Plan, also called the Debt Consolidation Program or “Reduce My EMI”, is for people who can still repay but need a smarter way to manage their debt. FREED looks at your profile and matches you to a lending partner from its network. That partner gives one new loan, which pays off your existing eligible loans and leaves you with one lower EMI. FREED gets the consolidation done for you. Final terms depend on the lending partner, and nothing is guaranteed.

If you cannot repay in full. The FREED Loan Settlement Plan, also called the Debt Resolution Program or “Settle My Loans”, is built for that situation. FREED assesses your full picture, builds a plan, guides a monthly savings routine, and negotiates once the fund is enough. The company decides the final terms. It takes time and never resolves a loan overnight. The detail sits on the Dhani loan settlement page.

If you are unsure whether you qualify for either, FREED’s team can talk through your situation on a call and tell you what options are open.

Rates and ranges shown are indicative. Final terms decided by the bank. FREED is not a Loan Provider. No outcome is guaranteed. Please verify directly with your bank.

Five habits keep the process clean from start to finish.

1. Pay only the total on the statement before its validity date. That way, no small balance is left behind.

2. Pay only through the channel Dhani names. Check the account or link in the official app, since fake payment requests copy real ones.

3. Save the statement, the receipt, and every chat or email in one folder. You may need them months later.

4. Ask in writing that the mandate is cancelled, and watch the next two EMI dates. A forgotten auto-debit is an easy thing to miss.

5. Pull your credit report a few weeks later and check that the loan shows as closed. If it does not, use the steps above.

If a payment request looks off, read the fake loan app complaint guide. If the loan still appears on your report after it is cleared, how to remove a loan account from CIBIL explains what is and is not possible.

Keep one more habit in mind. Foreclosing in a hurry because of a reminder call is how people pay the wrong amount. If a call or message pushes you to pay today, stop and check the figure against your own statement first.

Take your time, keep the papers, and do not let the date on the statement rush you into paying through a channel you have not checked.