Question
Q: What is the difference between loan settlement and loan closure?
Answer
A: Closure means paying off the full amount owed under the contract. Settlement means agreeing to a lower payment to close the account. Settlement can change how reports are made, so it's very important to keep records. Both need written proof, receipts, and a No-Dues/closure letter to keep claims from coming back. Legals365 and Advocate BK Singh talk about risk and make sure the paperwork is as safe as possible..
By Advocate BK Singh
(Delhi High Court)
