If youre struggling with EMIs and regular repayment is no longer possible, understanding the loan settlement process in India is very important. Loan settlement usually happens when a borrower and lender agree to close the loan for a lower lump-sum amount due to genuine financial hardship. It can help reduce stress, but it should only be considered as a last resort because it may affect your credit score for years. Based on Zavos guide, the usual process includes reviewing your finances, speaking directly with your lender, negotiating a reduced amount, taking written confirmation, making the payment, and collecting a No Dues Certificate (NDC) after closure. If anyone wants a clear step-by-step explanation, this guide is useful: loan settlement
