India Shelter Finance Corporation Ltd is a prominent housing finance company in India, focused on providing affordable home loans primarily to low and middle-income families. It also provides options for loan settlement for those struggling with repayment. Loan settlement is a way for borrowers to negotiate and clear their outstanding debts through an agreed-upon reduced payment or revised loan terms.

The company emphasises customer convenience through online platforms for loan repayments, allowing customers to utilise services like Bajaj Finserv for hassle-free loan settlements. With Bajaj Pay, the BBPS platform on Bajaj Finserv, users can view, pay, and download their loan repayment receipts with just a few clicks. Bajaj Pay also supports payments for various other financial obligations, offering a comprehensive solution for managing multiple payments in one place.

Overview of India Shelter Finance Corporation loan settlement

Loan settlement is a process where a borrower who is unable to repay their loan in full negotiates with the lender to pay a reduced amount as a one-time settlement. This helps the borrower clear their outstanding debt while allowing the lender to recover part of the loan.

India Shelter Finance Corporation provides loan settlement options for individuals facing financial difficulties. However, this should be considered only as a last resort, as settling a loan for less than the original amount can negatively impact a borrower’s credit score.

Process for India Shelter Finance Corporation loan settlement

Borrowers can follow these steps to complete the loan settlement process with India Shelter Finance Corporation:

1. Contact the lender: Borrowers facing difficulty in repaying their loan should reach out to India Shelter Finance Corporation and explain their situation. A direct and honest approach is necessary to start the settlement discussion.
2. Review by the lender: The lender assesses the borrower's financial condition and outstanding dues before determining if a settlement can be offered.
3. Negotiation of settlement amount: The lender may agree to a reduced lump sum payment, allowing the borrower to close the loan at a lower cost. This amount is decided based on the borrower's repayment capacity.
4. Written agreement: Once the borrower and lender reach a mutual agreement, all terms should be documented. A formal settlement agreement prevents misunderstandings or future disputes.
5. Making the payment: The borrower must pay the agreed settlement amount within the deadline using a payment method that provides proof, such as a bank transfer or demand draft.
6. Obtaining a No Objection Certificate (NOC): After the payment is completed, the borrower should request an NOC from the lender. This document confirms that the loan has been settled and there are no further dues.
7. Checking the credit report: Since loan settlements impact credit scores, borrowers must review their credit report post-settlement to ensure it is correctly updated as ‘SETTLED’ or ‘CLOSED’.

Benefits of loan settlement with India Shelter Finance Corporation

1. Reduced financial burden: Borrowers can settle their loans by paying less than the total outstanding balance.

2. Quick resolution: The loan settlement process ensures a timely resolution of outstanding debts.

3. Avoidance of legal complications: Settling the loan prevents potential legal actions and associated stress.

4. Improved financial stability: Borrowers can clear their debts and focus on rebuilding their finances.

5. Preservation of borrower-lender relationship: An amicable settlement ensures continued goodwill between the borrower and India Shelter Finance Corporation.

Tips for a successful India Shelter Finance Corporation loan settlement

1. Be proactive: Contact the lender as soon as financial challenges arise.

2. Provide accurate information: Share truthful and comprehensive details about your financial situation.

3. Understand the agreement: Read the settlement terms carefully before agreeing.

4. Negotiate wisely: Aim for a settlement amount that aligns with your current financial capacity.

5. Complete payments on time: Adhere to the agreed repayment schedule to ensure a smooth settlement.

Eligibility criteria for India Shelter Finance Corporation loan settlement

Borrowers must meet the following criteria to be eligible for a loan settlement with India Shelter Finance Corporation:

1. Demonstrated financial hardship: Provide evidence of genuine financial challenges preventing full repayment.

2. Overdue loan account: Loan settlement is typically available for accounts with overdue payments or defaults.

3. Document submission: Borrowers must submit necessary documents, such as proof of income and loan account details.

4. Mutual agreement: Both the borrower and India Shelter Finance Corporation must agree to the settlement terms.

Steps for loan repayment using the Bajaj Finserv website

Here are the steps to make loan repayment online using the Bajaj Finserv website:

1. Visit the Bajaj Finserv website and log in to your account

2. Go to the ‘LOAN REPAYMENT' section under the 'PAYMENTS' menu

3. Choose your biller from the drop-down list

4. Enter your loan account number and click 'FETCH YOUR BILL.'

6. Select a preferred payment method from the options from the list of available payment options

7. After choosing your preferred payment mode, enter the requested payment details in the comfort of your home.

You will receive a confirmation notification from Bajaj Finserv after the successful payment.

Fees and charges

A convenience fee of up to 2% will be charged depending on the transaction amount and payment mode (including applicable taxes). For more information on fees and charges, click here.

Note: For failed transactions, the total amount, including charges except taxes, is reversed.