Vehicle & Rural Finance Relief

Settle Your L&T Finance Loan Legally

Facing repossession of your Two-Wheeler or Tractor? Struggling with Microfinance dues? We help you negotiate a One Time Settlement (OTS) and stop harassment.

About L&T Finance

L&T Finance Holdings Ltd is a leading Non-Banking Financial Company (NBFC) in India. It has a massive presence in rural and semi-urban areas, specializing in Two-Wheeler Loans, Farm Equipment (Tractor) Loans, and Microfinance.

While they empower many to buy vehicles and equipment, their recovery process for defaulters is known to be stringent. They often employ third-party agencies for vehicle repossession and initiate arbitration proceedings quickly.

If you are facing financial distress and cannot pay your EMIs, AMA Legal Solutions can help you protect your assets and negotiate a dignified settlement with L&T Finance.

Two-Wheeler Loan Settlement

Two-wheeler loans are secured loans. The biggest risk here is the seizure of your bike or scooter by recovery agents.

Stop Repossession

Agents cannot seize your vehicle by force. They must follow legal procedure. We intervene to stop illegal seizure and buy you time to arrange funds or settle.

Settlement Options

If the vehicle value has depreciated significantly, the bank may agree to a settlement amount that is close to the current market value of the vehicle, waiving off the remaining dues.

Tractor & Farm Equipment Loans

Support for Farmers

Farmers often face default due to crop failure or monsoon issues. L&T Finance understands this but still follows process.

How We Help:

  • Restructuring: We can negotiate to increase the loan tenure and reduce EMI amount.
  • Moratorium: In cases of natural calamity, we can request a temporary pause on EMIs.
  • OTS: If you want to close the loan, we negotiate a one-time payment with waiver of penal interest.

Microfinance (JLG) Loan Settlement

Microfinance loans are often given to Joint Liability Groups (JLGs). If one member defaults, the group is pressured.

Our Approach: We help individual borrowers settle their portion of the debt without being harassed for the group's liability, especially in cases of genuine personal hardship like health issues or loss of livelihood.

Group Liability Issues?

We resolve individual liability in group loans.

One Time Settlement (OTS) Solution

OTS is the most effective way to close your loan if you cannot pay the full amount. L&T Finance accepts a reduced payment to close the account.

How It Works

  • We assess your ability to pay.
  • We submit a proposal to the Regional Office.
  • We negotiate for maximum waiver.
  • You get a formal settlement letter.

Benefits

You save significantly on interest and penalties. The vehicle is released (if seized) or the lien is removed. Legal cases are withdrawn.

Why Choose AMA Legal Solutions?

Asset Protection

We prioritize saving your vehicle or property from seizure.

Expert Negotiation

We know the internal hierarchy of L&T Finance and who to approach for approvals.

Legal Defense

We handle arbitration and court cases so you don't have to face them alone.

Our Step-by-Step Process

1. Consultation

We understand your loan type (Secured/Unsecured) and default status.

2. Stop Harassment

We legally intervene to stop agents from harassing you or seizing your vehicle illegally.

3. Proposal Submission

We submit a structured settlement proposal to L&T Finance.

4. Negotiation

We negotiate with the bank officials for the best possible settlement amount.

5. Closure

You pay the settlement amount, and we ensure the loan is closed and NOC is issued.

RBI Guidelines on Repossession

For vehicle loans, the RBI has strict guidelines:

  • Notice: Bank must give notice before repossession.
  • Inventory: A list of items in the vehicle must be made.
  • Chance to Pay: You must be given a chance to pay dues before sale.
  • Fair Value: The vehicle must be sold at a fair market price.

If your vehicle was seized forcefully without notice, we can take legal action to get it back.

Impact on CIBIL Score

Settlement will mark your account as "Settled" in CIBIL. This lowers your score.

However, it is a necessary step to stop the debt from growing and to avoid legal complications.

You can rebuild your score to 750+ within 18-24 months by demonstrating good financial behavior on new, small secured loans.

Rebuilding Steps

  • Obtain NOC/NDC from L&T Finance.
  • Check CIBIL report for status update.
  • Take a secured credit card.
  • Pay all future bills on time.

Required Documents

  • Loan Account Number
  • PAN Card & Aadhaar Card
  • Vehicle Registration (RC) Copy
  • Legal Notices (if any)
  • Proof of Income Loss / Crop Loss
  • Medical Records (if applicable)

Client Success Stories

★★★★★

"My tractor loan was in default due to bad harvest. L&T agents were threatening to seize it. AMA Legal helped me restructure the loan and stop the seizure. Very helpful for farmers."

R

Ramesh Kumar

Farmer, Punjab

★★★★★

"I had a two-wheeler loan and lost my job. I couldn't pay the EMIs. AMA Legal negotiated a settlement for me, and I paid a lump sum to close the loan. The bike is safe with me."

A

Amit Singh

Delivery Partner, Delhi

L&T Finance FAQs

Common Questions

Expert answers on settling Two-Wheeler, Tractor, and Personal Loans with L&T Finance.

Yes, if you are unable to pay the EMIs due to financial loss, job loss, or medical emergencies, L&T Finance may agree to a One Time Settlement (OTS). This usually happens after the loan has been classified as a Non-Performing Asset (NPA).
Tractor loans are secured loans. L&T Finance has the right to repossess the tractor if you default. However, we can help you negotiate a restructuring of the loan or a settlement to prevent repossession, especially if the default is due to crop failure or genuine hardship.
Yes, L&T Finance frequently uses arbitration clauses in their loan agreements. They may appoint an arbitrator to pass an award for the recovery of the dues. It is critical to attend these proceedings or have a lawyer represent you to ensure a fair outcome.
Microfinance loans (JLG loans) are often given to groups. While individual settlement is possible, it can be complex due to group liability. We can help negotiate an individual settlement if you are facing specific personal hardships.
For unsecured loans (like personal or consumer durable loans), settlements can range from 40% to 60% waiver on the outstanding amount. For secured loans (Two-wheeler/Tractor), the discount is generally lower as the lender can sell the asset, but we can still negotiate waiver of penal interest and charges.
They cannot seize your vehicle without following due legal process. They must give you notice. If agents are threatening to seize your bike by force, it is illegal. We can intervene to stop this harassment.
Settling a loan will mark the account as 'Settled' in your credit report, which drops your score. However, this is a better alternative to a 'Written Off' status or ongoing default, which damages your score more severely.
Typically, OTS requires a lump-sum payment. However, in genuine cases, we can negotiate with L&T Finance to allow payment in 2-3 installments over a short period.
You will need your loan account number, ID proof (PAN/Aadhaar), and documents proving your financial hardship (e.g., income loss proof, medical records, crop loss report for farmers).
We ensure that you receive a formal settlement letter from L&T Finance on their official letterhead before you make any payment. This letter serves as proof that the loan is closed upon payment.
It will be difficult to get a loan immediately. You will need to rebuild your credit score for 12-24 months using secured credit cards or small loans before you become eligible again.
We have extensive experience dealing with L&T Finance's legal and recovery teams. We know their processes and can get you the best possible deal while protecting you from harassment and legal complications.
Do not ignore it. A legal notice is the first step towards court action or arbitration. Send it to us immediately so we can reply to it legally and initiate settlement talks.
Yes, but since it is a secured loan, the bank will prefer to sell the property. Settlement is possible if the property value has fallen or if you can arrange a lump sum close to the principal amount. We can help analyze your specific case.
In most cases, we handle the negotiations remotely. You may only need to visit for the final payment or to collect the No Dues Certificate.

Solve Your L&T Finance Loan Issues

Expert legal help to protect your assets and settle debts.

We Serve All States & Union Territories

Our loan settlement services are available across all states and union territories in India