Impact of loan settlement

Loan settlement can have a significant impact on the borrower’s CIBIL Score. While it provides relief from immediate financial strain, it may lead to a dip in the borrower’s credit score. The settlement status is typically reported on borrowers’ credit report, indicating that the debt wasn’t fully paid till all the dues are cleared.

Moreover, loan settlement can also impact the borrowers’ future creditworthiness and they might not get a loan in future from any leading financial lenders.

Therefore, borrowers are advised to understand the long-term impact on their credit score and future creditworthiness.

Loan settlement option can impact borrower’s credit score negatively. It can also affect borrower’s creditworthiness for future loans. Therefore, it’s advised to go through all these details before opting for a loan settlement.