Your go-to resource for financial wellbeing

Debt Management

Struggling to repay a bank loan and wondering if settlement is an option? It is but the process has specific steps, and skipping any one of them can leave you unprotected. Here is exactly how it works.

By Mohit Juneja | 7 October 2026

Debt Management

If your EMIs have piled up and someone has mentioned "settlement," you probably have a lot of questions. What does it actually mean? Will it hurt your CIBIL? Is it the same as closing the loan? In this guide, we'll explain loan settlement in plain words, the meaning, the process, the costs, and what you need to know before deciding.

By Mohit Juneja | 7 October 2026

Loan Settlement

Loan settlement is when your bank or NBFC agrees to close a defaulted loan for less than the full amount owed. That much is well covered. What's missing from most guides: whether the waived amount counts as taxable income, what happens to anyone who guaranteed your loan, and what actually happens if you agree to a settlement and then can't make the payment.

By Mohit Juneja | 7 October 2026