Fibe, formerly known as EarlySalary, is a popular fintech platform in India that provides instant personal loans and salary advances. While these quick loans are convenient, the high interest rates and short repayment tenures can sometimes lead to a debt trap. Unforeseen circumstances such as sudden job loss, medical emergencies, or salary delays can make repaying these loans impossible.
When you default on a Fibe loan, the consequences can be severe. You may face aggressive calls from recovery agents, legal notices for arbitration or Section 138 (cheque bounce), and a rapidly increasing outstanding amount due to late fees and penalties. This situation can be overwhelming, affecting your mental peace and professional life.
However, you are not alone, and there is a legal solution. Fibe Loan Settlement is a legitimate financial recourse available to borrowers who are in genuine financial distress. It allows you to close your loan account by paying a negotiated lump sum amount that is often significantly lower than your total outstanding dues. At AMA Legal Solutions, we protect your rights, stop the harassment, and help you become debt-free.
One Time Settlement (OTS) is a formal agreement where Fibe agrees to accept a reduced payment to close a non-performing loan account. This typically happens when the loan has been classified as a Non-Performing Asset (NPA), usually after 90 days of non-payment.
Fintech lenders like Fibe understand that recovering the full amount through legal battles is time-consuming. Therefore, if you can prove genuine financial hardship, they may agree to waive the accumulated interest, penal charges, and even a portion of the principal amount to recover what they can immediately.
*Figures are for illustration. Actual settlement depends on individual cases, delinquency period, and negotiation.
Settlement is not a right but a negotiation. Fibe will only agree to settle if they are convinced that your inability to pay is genuine and not willful. Here are the common grounds for eligibility:
If you have lost your job due to layoffs, company closure, or resignation and have been unemployed for a significant period, you can apply for settlement.
Entrepreneurs facing severe losses, bankruptcy, or closure of business operations can use their financial statements to prove hardship.
Severe illness, hospitalization of self or family members that has drained your savings and income capacity is a valid ground for settlement.
Loss of a primary earning member in the family or legal separation affecting household income can be presented as a reason for settlement.
If you have the funds but are choosing not to pay, Fibe will not settle. They may instead initiate strict legal action against you.
We review your documents to prove genuine financial hardship.
We inform Fibe of our representation to stop harassment.
We draft and submit a realistic settlement proposal to the lender.
Our lawyers negotiate hard to get the maximum possible waiver.
You pay the settled amount and get the No Dues Certificate.
The process starts with you providing us with your loan details and proof of hardship. We analyze your financial standing to determine the maximum amount you can afford to pay and the minimum amount the lender is likely to accept.
Harassment is the biggest pain point. We issue a formal "Letter of Representation" to Fibe. This legal document states that you have appointed us as your legal counsel. Under RBI guidelines, once a lawyer is appointed, recovery agents must direct their communication to the lawyer, not the borrower. This gives you immediate relief.
We don't just ask for a settlement; we present a case. We draft a professional proposal highlighting your inability to pay due to specific reasons (job loss, medical issues) and offer a settlement amount. This is done in writing to create a paper trail.
Fibe will likely reject the first offer or counter with a high amount. This is where our experience counts. We engage in multiple rounds of negotiation with the lender's credit managers, citing legal precedents and your financial reality to bring the amount down.
Once a figure is agreed upon, Fibe issues a Settlement Letter. We verify this letter to ensure it contains no hidden clauses. You make the payment directly to your loan account (never to an agent). Finally, we follow up to ensure you receive the No Dues Certificate (NDC), officially closing the loan.
To convince the lender, we need to prove your financial distress. Having these documents ready speeds up the process.
If you default, Fibe may send various legal notices. Ignoring them is dangerous. Here is what they mean and how we handle them.
Issued for Cheque Bounce or NACH failure. This is a criminal offense in India.
Our Action: We reply immediately, attend court hearings if needed, and push for an out-of-court settlement to quash the case.
Notice to resolve the dispute through an arbitrator appointed by the lender.
Our Action: We represent you in arbitration proceedings to ensure the award is fair and not one-sided.
A formal warning demanding payment of the full outstanding amount within a specific period.
Our Action: We respond with a legal reply stating your financial hardship and proposing a settlement.
Many borrowers confuse these two options. Here is a clear comparison to help you decide.
| Feature | Loan Restructuring | Loan Settlement (OTS) |
|---|---|---|
| What is it? | Changing terms (tenure/EMI) to make repayment easier. | Closing the loan by paying a reduced lump sum. |
| Total Payment | You pay the full principal + interest (often more over time). | You pay significantly less (20-50% savings). |
| Credit Score | Less impact. Shows as "Restructured". | Negative impact. Shows as "Settled". |
| Best For | Temporary cash flow issues but intent to pay full. | Severe financial crisis with no hope of full repayment. |
| Closure | Loan continues for years. | Immediate closure and freedom from debt. |
Settlement will mark your account as "Settled" in CIBIL, dropping your score by 50-100 points. This is a trade-off for becoming debt-free.
It stops the "Days Past Due" counter. You can rebuild your score to 750+ in 12-24 months using secured credit cards. We provide a post-settlement credit repair guide to all our clients.
We understand the specific algorithms and recovery tactics used by fintech apps like Fibe, giving us an edge.
We are lawyers, not agents. We can handle legal notices and represent you in arbitration if needed.
Once we step in, recovery agents are legally bound to talk to us, not you. We take the stress off your shoulders.
"I had taken a loan from EarlySalary (now Fibe) and couldn't pay due to job loss. AMA Legal Solutions helped me settle the loan for 40% of the outstanding amount."
Arjun Nair
Marketing Executive, Chennai
"The harassment from recovery agents was unbearable. AMA Legal Solutions stepped in, stopped the calls, and closed my loan legally. Very grateful."
Sneha Gupta
Freelancer, Bangalore
The Fibe (formerly EarlySalary) loan settlement process is a debt relief option for borrowers who are unable to repay their loans due to genuine financial hardship. It involves negotiating with Fibe to pay a one-time lump sum amount that is significantly lower than the total outstanding dues. This allows you to close the loan account permanently and stop further interest accumulation and legal actions.
The settlement amount depends on several factors, including the duration of your default, your current financial situation, and the total outstanding amount. Typically, borrowers can save anywhere from 30% to 50% of the total dues. In some cases of severe hardship or older defaults, the waiver can be even higher. AMA Legal Solutions negotiates hard to get you the maximum possible discount.
No, Fibe (EarlySalary) generally does not charge any pre-closure or prepayment fees for personal loans. You can pay off your entire loan amount before the tenure ends without any penalty. However, loan settlement is different from pre-closure; settlement is for those who cannot pay the full amount, whereas pre-closure is for those paying the full principal plus interest to date.
Yes, settling a loan will negatively impact your CIBIL score. The loan status will be reported as 'Settled' instead of 'Closed', which indicates that the full amount was not paid. This can drop your score by 50-100 points. However, this is a better outcome than a 'Written Off' status or continuing default. You can rebuild your score over time by practicing good financial discipline.
Yes, Fibe has the legal right to recover their dues. If you default, they may send legal notices, including notices for arbitration or under Section 138 (for cheque bounce/NACH failure). Ignoring these can lead to serious legal complications. It is advisable to engage a legal firm like AMA Legal Solutions to handle these notices and negotiate a settlement professionally.
Harassment by recovery agents is illegal. Once you hire AMA Legal Solutions, we issue a formal Letter of Representation to Fibe, directing them to communicate only with us, your legal counsel. This stops the harassment calls to you and your contacts. We ensure that the recovery process follows RBI guidelines and that your rights are protected.
To initiate a settlement, you need to prove your financial inability to pay. Required documents typically include your KYC details (PAN, Aadhaar), the latest loan statement from Fibe, and proof of hardship such as a termination letter, medical bills, or bank statements showing a drop in income.
Getting a new unsecured loan immediately after settlement is difficult due to the 'Settled' status on your credit report. Lenders view it as a higher risk. However, it is not a permanent blacklist. By using secured credit cards and paying bills on time, you can improve your credit score and become eligible for loans again in 2-3 years.
The settlement process with Fibe usually takes between 1 to 3 months. This timeline includes the initial assessment, legal representation, multiple rounds of negotiation, and final approval from Fibe's credit team. We work efficiently to resolve the matter as quickly as possible to give you peace of mind.
Yes, once a settlement amount is agreed upon, Fibe will issue a formal Settlement Letter. This document outlines the terms of the payment and confirms that upon payment, the loan will be closed. We verify this letter to ensure it is legally sound before you make the payment. Once paid, you receive a No Dues Certificate (NDC), which is the final legal proof of closure.
Our loan settlement services are available across all states and union territories in India