How to get a written settlement confirmation?

Answer

A: You should only release the final payment after you get a written settlement confirmation. This is because verbal promises are not legally binding and can lead to future disputes. Get the terms of the settlement in writing on official letterhead or email. Include the loan or account number, the final settlement amount, the due date, the phrase "full and final," and a clear promise to send No-Dues/NOC and update records within a set time frame. Make sure that the document is signed by someone who is allowed to do so, and check that the payment goes to the lender's official account and not a personal wallet or random UPI ID. Don't just get a WhatsApp message saying "done" after you pay; make sure you get a zero-balance statement and a closure letter. Legals365 and Advocate BK Singh can write the settlement in a way that is legally binding so that the lender can't later say, "balance pending.".