This is not a settlement; 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.
A foreclosure can be considered if you have missed your EMI and do not want your credit score to be impacted.
To foreclosure a personal loan, you would need to submit a written application with your and the loan details to the lender. There will be charges ranging from 0% to 6% on the balance principal amount and they will also levy prepayment penalty on the outstanding balance.
We can assist you to foreclose on your loan and help negotiate the prepayment penalty which could be 6% of the outstanding balance. We can negotiate a term foreclosure and in some cases with a discount without it impacting your credit score.