Case Study 10: Foreclosure

We negotiated on three loans, a term foreclosure, restructured a loan and one time settlement with credit clearance. Now this businessman is debt free with an improved credit score. Total debt was ₹12,44,972 and settled for ₹11,27,682

A businessman from Mumbai approached us to help him become debt free and improve his credit score as he wanted to borrow money in the future when his business improves.

He had three personal loans with a combined outstanding of ₹12,44,972 and only had ₹6,50,000 for these settlements. He had missed 6 EMI and the creditors were Shriram City Union Finance, Neo Growth Credit and Fintree Finance.

With Shriram City Union Finance he had an outstanding of ₹1,07,692 and we were able to negotiate a one-time settlement of ₹70,000 which was a 35% discount, and an entry of “full and final” on his credit file.

In the case of Fintree Finance there was an outstanding of ₹4,72,280, we were able to negotiate a term foreclosure of the loan for ₹3,92,682 which we negotiated to be paid over a term of 12 months.

On the Fintree Finance term foreclosure we had saved him ₹79,598 which represented a 17% discount. But most importantly was the fact that we were able to negotiate a 12-month term payment plan which worked out as a monthly payment of ₹32,723. This he was able to service from his business.

In the case of Neo Growth Credit we were able to negotiate a restructuring of the loan which had an outstanding of ₹6,65,000 into two payments (₹3,65,200 & ₹2,99,800 over two months) without it having any adverse impact on his credit score. The client was happy with this restructuring and had given him breathing space he needed. 

Our Advocates checked the authenticity of the bank’s letters and vetted the letters to ensure that any adverse entry would be deleted on the clients credit file and that it was replaced with “Full and Final” or “Closed”.

We were able to make our client debt free and improve his credit score by having the adverse entries removed from his credit file. All this was achieved within the budget that he had set for us.

 

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