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Loan settlement calculator
Enter what you owe and see an estimated settlement range. Amounts vary from bank to bank, and your lender makes the final decision.
Start with your figures
Your settlement sheet
Total you owe today
₹6,00,000
You may pay your lender
₹1,20,000 to ₹2,10,000
Settlement amounts vary from bank to bank. This is an estimate, not a promise, and your lender makes the final decision.
Estimated reduction
65–80%
That could be
₹3,90,000 to ₹4,80,000
Time to raise the money
7 to 16 months
You may pay (estimate)
₹1,20,000 to ₹2,10,000
Read this first
Why you see a range, not one number
Settlement amounts vary from bank to bank, so no single number fits everyone. As an estimate, this calculator shows a reduction of 65% to 80% of what you owe, which means paying 20% to 35%. Your lender decides case by case, so your figure can fall outside this range. Nothing is fixed until your lender confirms it in writing.
How to use it
- STEP 1
Add up what you owe
Enter the principal outstanding, plus interest and charges, from your latest statement or notice.
- STEP 2
Enter what you can pay
Add the money you have now and what you can realistically save each month. The calculator shows the lump sum you could raise in 3, 6 and 12 months.
- STEP 3
See your estimated range
The calculator shows what you may pay your lender, the estimated reduction and the time you may need to raise the money. Amounts vary from bank to bank.
No hidden logic
How the numbers are worked out
- Total you owe
- Principal outstanding+Interest and charges
- Estimated amount you may pay
- Total you owe×20% to 35%
- Estimated reduction
- Total you owe×65% to 80%
- Lump sum you could raise
- Money you have now+(Monthly saving × months)
- Time to raise the money
- (Estimated amount − money you have now)÷Monthly saving
The time to raise the money is rounded up to the next full month.
Worked example
This shows the arithmetic with made-up figures. Your own result depends on your lender.
| Principal outstanding | ₹5,00,000 |
| Interest and charges | ₹1,00,000 |
| Total owed | ₹6,00,000 |
| Estimated reduction (65–80%) | ₹3,90,000 to ₹4,80,000 |
| You may pay (20–35%) | ₹1,20,000 to ₹2,10,000 |
| Money available now | ₹60,000 |
| Monthly saving | ₹15,000 |
| Time to raise the money | 4 to 10 months |
Example only
What shapes a lender's decision
The lender's own policy
Banks and NBFCs settle under their own board-approved policies, so the same figure may be accepted by one lender and refused by another.
How overdue the account is
An account generally turns into a non-performing asset after 90 days overdue, and lenders treat early and old defaults differently.
Your documented hardship
Job loss, illness or a business failure carries more weight when you can show it with papers.
Lump sum or instalments
Whether you can pay at once or need time affects the discussion, which is why the calculator shows the time you need.
The type of loan
A loan backed by security gives the lender other ways to recover, unlike most personal loans and credit cards.
Once you have a figure
- 1
Get the settlement offer in writing on the lender's letterhead before you pay anything.
- 2
Check that the letter shows the exact amount, the payment deadline and that the rest of the dues are closed.
- 3
Pay only into the lender's official account, never into a personal account or an agent's account.
- 4
After paying, collect the No-Dues Certificate and keep every paper.
- 5
Check your credit report, where the account will show as 'Settled' and can lower your score for a period.
Frequently asked questions
How much will my bank accept in a loan settlement?
Settlement amounts vary from bank to bank. As an estimate, this calculator shows a reduction of 65% to 80% of what you owe, which means paying 20% to 35%. Your lender makes the final decision, so your figure can be different.
Is the amount shown guaranteed?
No. It is an estimate based on the figures you enter. Your settlement is only fixed when your lender confirms the amount in writing.
Why does the settlement amount vary from bank to bank?
Each bank and NBFC settles under its own policy. It also looks at how overdue the account is, your documented hardship, the type of loan and whether you can pay as a lump sum.
Is this loan settlement calculator free?
Yes. It is free, needs no sign-up and runs in your browser. Nothing you type is sent to us or saved.
Does the calculator work for credit cards and personal loans?
Yes. Enter the outstanding and charges from your statement or from the lender's notice. A loan backed by security, such as a gold or home loan, may work differently.
Will settling affect my CIBIL score?
Yes. The account is reported as 'Settled' rather than 'Closed', which lowers your score for a period and can affect new loans. Weigh that against the amount you could save.
Not sure whether a figure is right for you?
Legal experts can review your loan, your notices and any offer you have received.
Get a free case review