Home loan settlement is possible only if your lender agrees; it decides under its own policy. A secured loan (home loan, loan against property, vehicle or gold loan) is backed by an asset. If you fall behind, the lender may send notices about that asset. Here is what to know, in plain words.
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Sources: Reserve Bank of India (rbi.org.in), RBI complaint portal (cms.rbi.org.in), India Code (indiacode.nic.in).
It is possible only if the lender agrees. Lenders decide under their own board-approved policies, as RBI's June 2023 rules allow. Because the home secures the loan, lenders often prefer a payment plan. You can always ask.
For a secured loan, the loan papers usually allow the lender to act against the asset if the loan stays unpaid. In India, banks and some other lenders can use a law called the SARFAESI Act for this, after the account is classed as a bad loan (NPA) and a notice has been sent. The steps, dates and your rights depend on your loan and the notice, so read the notice carefully and talk to a lawyer of your choice.
It is a written demand notice from the lender. It usually gives you 60 days to pay the dues. If you disagree with it, the law allows you to send the lender your objections in writing. A lawyer of your choice can tell you what applies to you.
You can always ask. Whether the lender agrees depends on its own policy and your situation. We can help you prepare what to ask. We cannot promise the lender will agree.
No. We are a consultancy, not a law firm. We explain your options and help you talk to your lender. A lawyer of your choice can advise on your case.
Tell us a few details about your loans. We will look at them and explain the options that may suit you.