Loan Settlement Calculator: Free Estimate

What the calculator does

It takes two numbers from you:

1. Total amount you owe. Use the latest figure from your statement or the lender's app. Include interest and charges if they are shown.
2. One-time amount you could pay. Be honest. This should be money you really have or can arrange without taking a new loan.

It then shows:

• The difference between what you owe and what you could pay.
• What it would look like in 3 equal parts, if the lender allowed instalments.

That is all it does. It does not know your lender's policy, your account history or your income.

What the calculator does not do

• It does not tell you what your lender will accept. There is no fixed "settlement percentage" in RBI rules. Each lender follows its own board-approved policy. (RBI framework, 8 June 2023)
• It does not include our fees, tax, or charges the lender may add.
• It does not show the effect on your credit report. A settled account is usually reported as "settled", not "closed".

How to choose the numbers

Total owed: If you have more than one loan or card, you can either add them up and choose "Mixed / Multiple", or check each loan one at a time. One at a time is usually clearer, because each lender decides separately.

Amount you could pay: Think about savings, a bonus, help from family, or selling an asset. Do not count money you need for rent, food, school fees or medicines. A settlement you cannot pay on time can fail, and you may lose the deal.

How long overdue: This is for your own reference. Lenders look at many things, including how long the account has been overdue, but there is no fixed rule.

Example 1: personal loan

Example: say Rohit has ₹3,00,000 due on a personal loan. Say he has lost his job and missed 9 EMIs, and his family could help him arrange ₹1,20,000. (Made-up example, not a real client or result.)

• Total owed: ₹3,00,000
• Could pay: ₹1,20,000
• Difference: ₹1,80,000
• In 3 parts: ₹40,000 each

In this example, this does not mean the bank would accept ₹1,20,000. It may ask for more, ask for a lump sum, offer a restructuring instead, or refuse. Rohit would need to get any offer in writing before he pays.

Example 2: credit card

Example: say Meena has ₹85,000 due on a credit card and could pay ₹15,000 a month for 3 months. (Made-up example, not a real client or result.)

• Total owed: ₹85,000
• Could pay: ₹45,000
• Difference: ₹40,000
• In 3 parts: ₹15,000 each

In this example, Meena could also ask the card issuer about converting the dues into EMIs. That may cost more interest but avoids a "settled" remark. Comparing both is worth it.

Before you approach your lender

• Ask the lender for an up-to-date statement of dues.
• Write down why you cannot pay (job loss, illness, business loss) and keep proof.
• Get any offer in writing on the lender's letterhead before paying.
• Pay only into the lender's official account. Never into a personal account.
• After paying, ask for a settlement or no-dues letter. Check what the letter should say.