FREQUENTLY ASKED QUESTIONS

Settlement helps eliminate debt, offering a path to a debt free life. If you are experiencing creditor’s harassment, legal cases or struggling with monthly payments, it may be the right choice for you.

We charge a 10% fee, but only after your debt is successfully settled, as explained in your settlement letter.

For legal services, there's a small fee like:

• Power of Attorney: ₹2,000
• Responding to legal notices: ₹499

Additionally, we offer a monthly subscription to manage your case, which ranges from ₹649 to ₹2,999, depending on your total debt amount.

We’ve kept our costs clear and affordable to help you on your journey to becoming debt-free!

A loan settlement does affect your CIBIL score negatively, and it’s important to understand this before proceeding.

The Impact Explained

• Account Status:
  Once reported, your loan will be marked as “Settled” (not “Closed”) on your credit report — signaling that the full amount was not repaid as per the original terms.
• Reduced Creditworthiness:
  A “Settled” status tells future lenders that you did not repay the loan in full, which may make you appear as a higher-risk borrower.
• Long-Term Effect:
  The “Settled” remark remains visible on your CIBIL report for up to 7 years, making it harder to obtain new loans or credit cards during that period. If you are approved for new credit, it may come with higher interest rates.
• Settled vs. Default

                While settlement lowers your score, it is still better than a default or write-off.

A “Settled” status shows that you made a genuine effort to resolve the debt, whereas a default indicates a complete failure to pay.

SML’s platform analyses your debt and income, and enrols qualifying debts based on your affordability and financial goals. You cannot selectively enrol only specific accounts; it depends on what qualifies for the program.

Your savings will vary based on your financial profile and the settlement program you qualify for. Typically, you can save up to 50% on your total outstanding debt.

SML's platform focuses on unsecured debts like credit card debts and personal loans. After completing the program, you can use the money previously allocated to those debts to pay off secured debts and improve your financial future. Our goal is to promote responsible financial habits and long-term debt freedom.

If you haven’t been making payments, your creditor may close the card. Even if it remains open, we strongly recommend not using any of the available balance once enrolled in the program.

SML’s Debt Settlement Program is for customers in severe financial distress who can no longer manage their debt. It helps you start fresh by settling unmanageable debts. The Debt Consolidation Program is a preventive option, lowering EMIs through better rates or longer tenure for those over-leveraged but still managing payments.

No, SML's Settlement Platform is fully transparent. Subscription and legal fees will be disclosed upfront before you enrol. There are no hidden fees at any stage.

Debt settlement programs are primarily designed for unsecured debts, which are loans not backed by collateral. This commonly includes credit card debt, personal loans, and certain unsecured business loans.

Loan settlement is the process by which a borrower and lender agree on a final, reduced payment amount to close or resolve an outstanding loan. Typically, this happens when the borrower is in financial distress and unable to pay off the full loan balance. Loan settlement can be seen as a way to negotiate a "deal" where the borrower pays less than what they originally owed, and the lender agrees to forgive the remaining balance.​

Here’s how it works:

1. The borrower (Or a representative like debt settlement company) negotiates with the lender for a lower payoff amount (usually a percentage of the balance).
2. The lender may accept this reduced amount to close the loan and forgive the rest of the debt.
3. The borrower pays the agreed-upon settlement amount, often in one lump sum or in few cases in term settlement for months between 3 to 6.
4. The remaining debt is forgiven, but this can negatively impact the borrower’s credit score.

It’s a way to resolve debt when full repayment isn’t possible but can have financial and credit consequences.

Loan settlement is the process by which a borrower and lender agree on a final, reduced payment amount to close or resolve an outstanding loan. Typically, this happens when the borrower is in financial distress and unable to pay off the full loan balance. Loan settlement can be seen as a way to negotiate a "deal" where the borrower pays less than what they originally owed, and the lender agrees to forgive the remaining balance.​

Here’s how it works:

1. The borrower (Or a representative like debt settlement company) negotiates with the lender for a lower payoff amount (usually a percentage of the balance).
2. The lender may accept this reduced amount to close the loan and forgive the rest of the debt.
3. The borrower pays the agreed-upon settlement amount, often in one lump sum or in few cases in term settlement for months between 3 to 6.
4. The remaining debt is forgiven, but this can negatively impact the borrower’s credit score.

It’s a way to resolve debt when full repayment isn’t possible but can have financial and credit consequences.

Loan foreclosure is the process of completely repaying your outstanding loan before the scheduled tenure ends. This includes paying the remaining principal along with any applicable interest and prepayment charges. Once foreclosure is completed, the loan account is officially closed, and you no longer owe anything to the lender.

The key differences between foreclosure and settlement are:

• Foreclosure: Involves paying the full remaining loan amount to close the loan early, usually done when you have sufficient funds. It generally does not impact your credit score.
• Settlement: Involves negotiating with the lender to pay a reduced amount, less than the total outstanding debt, typically due to financial hardship. Settlement may affect your credit score.

In short, foreclosure is early full repayment, while settlement is negotiated partial repayment to resolve debt.

Here’s how it works:

1. The borrower (Or a representative like debt settlement company) negotiates with the lender for a lower payoff amount (usually a percentage of the balance).
2. The lender may accept this reduced amount to close the loan and forgive the rest of the debt.
3. The borrower pays the agreed-upon settlement amount, often in one lump sum or in few cases in term settlement for months between 3 to 6.
4. The remaining debt is forgiven, but this can negatively impact the borrower’s credit score.

It’s a way to resolve debt when full repayment isn’t possible but can have financial and credit consequences.

When you partner with Settle My Loan, we offer a comprehensive suite of services designed to guide you towards financial freedom. This includes 

• Expert settlement negotiation with your creditors to reduce your outstanding loan amount. 
• Creditor call diversion, meaning we’ll handle all communication with your lenders on your behalf, so you no longer have to face relentless calls.
• Robust legal support, as we manage all legal notices, court proceedings, and arbitration matters. 
• We guide you improve your credit score post-settlement. 

These integrated services are all designed to ensure you can save for your settlement effectively and are protected from harassment throughout your journey with Settle My Loan.

The key differences between foreclosure and settlement are:

• Foreclosure: Involves paying the full remaining loan amount to close the loan early, usually done when you have sufficient funds. It generally does not impact your credit score.
• Settlement: Involves negotiating with the lender to pay a reduced amount, less than the total outstanding debt, typically due to financial hardship. Settlement may affect your credit score.

In short, foreclosure is early full repayment, while settlement is negotiated partial repayment to resolve debt.

Here’s how it works:

1. The borrower (Or a representative like debt settlement company) negotiates with the lender for a lower payoff amount (usually a percentage of the balance).
2. The lender may accept this reduced amount to close the loan and forgive the rest of the debt.
3. The borrower pays the agreed-upon settlement amount, often in one lump sum or in few cases in term settlement for months between 3 to 6.
4. The remaining debt is forgiven, but this can negatively impact the borrower’s credit score.

It’s a way to resolve debt when full repayment isn’t possible but can have financial and credit consequences.

SML specializes in negotiating various types of loan settlements tailored to your financial situation. Here’s how we can help you achieve debt freedom:

• One-Time Settlement (OTS): Pay off your entire negotiated debt in a single payment. This often allows us to secure the maximum possible discount from your creditors.
• One-Time Settlement with Credit Clearance: Not only do we negotiate a reduced lump sum payment, but we also work to ensure your credit report is updated to show the account as “NIL” after payment, helping to preserve or improve your credit standing.
• Term Settlement (Ongoing Settlement): Ideal if you can’t pay upfront, this allows you to repay the settled amount over a manageable period (typically 3 to 12 months), making debt resolution more accessible.
• Term Settlement with Credit Clearance: Here, you’re given time (typically 3 to 12 months) to pay off the settlement. If paid in full and on time, your credit file will be updated to reflect “NIL” and any negative tags like “Written off” may be removed—often improving your credit score.
• Moratorium Period Settlement: Need a breather? We can negotiate a short-term payment holiday (usually 3-4 months) before your settlement payments begin, giving you crucial time to organize your finances.
• Reversal Settlement : We aim to waive all interest and penalty charges, offering a clean settlement that can be paid over 10 to 12 months. This significantly reduces your total payable amount and simplifies repayment.
• Time-Barred Settlement : For older debts that are no longer legally enforceable due to the passage of time, we can still negotiate a settlement to get them removed from your credit report, providing complete closure even if legal collection is not a threat.
• Foreclosure : a foreclosure of a loan means the full repayment of the remaining loan amount in one single payment, instead of paying it back in within the original term. It is an existing part of your personal loan process in which you can repay the loan before your scheduled EMI period.