Facing SARFAESI notices, arbitration, or harassment? We specialize in negotiating One Time Settlements (OTS) for Piramal Finance housing, business, and personal loans.
Piramal Capital & Housing Finance Limited (PCHFL), now branded as Piramal Finance, is a behemoth in the Indian lending space. Their massive footprint is largely due to the acquisition of the bankrupt Dewan Housing Finance Corporation Limited (DHFL) in 2021. This merger created one of the largest Housing Finance Companies (HFCs) in India.
For DHFL Borrowers: If you took a loan from DHFL years ago, you are now a customer of Piramal Finance. Many legacy borrowers are confused by the sudden change in aggressive recovery tactics. The "friendly" local DHFL branch approach has been replaced by Piramal's corporate, process-driven recovery mechanism.
For New Borrowers: Piramal has aggressively expanded into "Digital Personal Loans" and "Small Business Loans" in Tier 2/3 cities. They use advanced data analytics to assess credit, but their recovery process is equally advanced and stringent.
Whether you are an old DHFL customer facing a sudden SARFAESI notice or a new borrower trapped in a high-interest personal loan, understanding Piramal's specific legal strategy is key to saving your assets. AMA Legal Solutions specializes in navigating this specific corporate structure to secure favorable settlements.
Many borrowers panic when they miss a single EMI. It is important to understand the timeline of default classification by the RBI, as this dictates the legal actions Piramal Finance can take.
If you miss an EMI, your account is flagged as Special Mention Account-0. You will receive reminder calls and SMS. There is no legal action at this stage, but late fees apply.
If the payment is overdue by more than 30 days, recovery efforts intensify. Field agents may visit your address. It is crucial to communicate your difficulty to the bank now.
This is the critical warning zone. The bank prepares for legal classification. You might receive a Loan Recall Notice asking you to pay the full amount.
Non-Performing Asset. The loan is officially defaulted. Piramal Finance can now initiate SARFAESI (for property) or Arbitration (for unsecured loans). Settlement discussions usually begin seriously after this stage.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is the most powerful tool in Piramal's arsenal. It allows them to seize your property without court intervention. Here is the timeline you must know:
When: Issued immediately after your account turns NPA (90 days).
What it says: "Pay the full outstanding amount within 60 days."
Your Move: This is the best time to negotiate. We file a legal reply/objection under Section 13(3A). The bank MUST respond to this objection within 15 days. This buys us valuable time to structure a settlement.
When: If you fail to pay/settle within the 60-day notice period.
What it says: The bank has taken "Symbolic Possession" of your property. They may paste a notice on your door and publish it in newspapers.
Your Move: The danger level is high. We can challenge this in the Debt Recovery Tribunal (DRT) under Section 17 if there are procedural lapses. Simultaneously, we push aggressively for OTS to prevent physical loss.
When: 3-6 months after symbolic possession.
What happens: The District Magistrate orders the police to assist the bank in physically evicting you and taking the keys.
Your Move: This is the final stand. We can seek a stay order from the DRT or High Court, but usually, settlement is the only practical way out. We have successfully halted evictions by presenting a concrete settlement proposal even at this stage.
For unsecured loans, Piramal Finance uses Arbitration. This is a private dispute resolution process. However, it is often skewed against the borrower.
Your loan agreement likely has a clause stating arbitration will be held in Mumbai or Delhi, even if you live in a small town. This makes it expensive for you to attend.
How We Fight: We challenge this venue clause. Courts have ruled that arbitration should be accessible to the borrower. We petition to move the proceedings to your city or handle it via video conferencing.
If you ignore the arbitrator's notices, they will pass an order (Award) in your absence. This Award is enforceable like a court decree to freeze your bank accounts.
How We Fight: We ensure you are represented. We attend the hearings (virtually or physically) and highlight your financial hardship, forcing the arbitrator to consider a settlement rather than a harsh recovery order.
Settling a secured loan is challenging because the lender has collateral (your house). However, it is not impossible. Piramal Finance may agree to settlement if:
We first attempt to restructure the loan (increase tenure, reduce EMI). If that fails, we aim for a settlement where you pay a lump sum (often arranged by selling other assets or borrowing from family) to release the property papers. We also ensure that the foreclosure charges are waived.
Business loans from Piramal are often unsecured but backed by personal guarantees of directors. When a business fails, the personal assets of the owners are at risk.
We help small business owners settle debts without declaring bankruptcy, protecting their future creditworthiness.
We negotiate to limit the liability of personal guarantors, ensuring their personal homes are not attached.
Settling overdrafts and cash credit facilities that have turned into NPAs due to business losses.
OTS is a formal agreement where Piramal Finance agrees to accept a reduced amount to close the loan account permanently. This is the most effective way to exit a debt trap.
Many borrowers believe they only have to pay the principal amount. While this is possible for unsecured loans that are old NPAs, for secured loans or recent defaults, the bank will demand at least the principal plus a portion of the interest.
Our Goal: To get you as close to the principal amount as possible, saving you lakhs in interest and penalties.
You might think, "Why can't I just talk to the bank myself?" You can, but banks have teams of lawyers and recovery experts trained to extract the maximum amount from you. Going alone puts you at a disadvantage.
We speak the language of the law. When a lawyer represents you, the bank takes your request seriously and stops using illegal coercion tactics.
Banks often issue vague settlement letters. We ensure the OTS letter clearly states "Full and Final Settlement" with no hidden clauses.
Once we are hired, all calls must be directed to us. This gives you the mental peace needed to arrange funds for the settlement.
We review your loan agreement, repayment history, and financial status. We determine if you are a candidate for restructuring or OTS.
We send a formal Letter of Representation to Piramal Finance, informing them that AMA Legal Solutions is now handling your case. This usually stops the recovery calls.
We draft a strong settlement proposal highlighting your genuine financial hardship (job loss, medical issues) with supporting evidence.
We negotiate directly with the authorized officers at Piramal's central or regional office, bypassing the local collection agents who have no authority to offer deep discounts.
Once the amount is agreed, we verify the official settlement letter. You make the payment directly to the loan account.
We follow up to ensure you receive the NDC and that the loan is marked as 'Settled' in your credit report.
The Reserve Bank of India has laid down strict guidelines to protect borrowers. Piramal Finance and its agents must adhere to these:
If any of these rights are violated, we can file a complaint with the Banking Ombudsman and use it as leverage during settlement negotiations.
A common concern is, "Will settlement ruin my CIBIL score?" The honest answer is: Yes, it will have a negative impact, but it is better than the alternative.
When you settle, your account status changes to "Settled". This indicates that you paid less than the full amount. Your score may drop by 50-100 points.
However, if you do not settle and the loan remains "Written Off" or in "Default", your score will continue to bleed every month, and you may be blacklisted. Settlement stops the damage.
To get a settlement approved, we need to prove to Piramal Finance that you have a genuine inability to pay.
| Feature | Loan Settlement (OTS) | Loan Restructuring | Insolvency / Bankruptcy |
|---|---|---|---|
| Objective | Close loan by paying less | Extend tenure / Lower EMI | Declare inability to pay legally |
| Debt Reduction | Yes (40-60%) | No (Interest increases) | Yes (Assets liquidated) |
| CIBIL Impact | Moderate (Recoverable) | Low (Shows 'Restructured') | Severe (7-10 years) |
| Best For | Lump sum available, income lost | Temporary cash flow issue | Total loss of assets & income |
"I run a small packaging unit in Ahmedabad. I took a ₹25 Lakh loan from Piramal (originally DHFL) for expansion. During the lockdown, my factory was shut for 8 months. I defaulted. They sent a legal notice and threatened to file a cheque bounce case. I was suicidal. I found AMA Legal Solutions online. They took over the communication. They attended the arbitration dates on my behalf. Finally, they negotiated a settlement for ₹12 Lakhs. I paid it by selling some old machinery. Today, my business is running again, and I am debt-free."
Business Owner, Ahmedabad
"My home loan was in default for 6 months due to a medical emergency in the family. I received a Section 13(2) notice under SARFAESI. I was terrified of losing my house. The bank agents were pasting notices on my wall. AMA Legal Solutions intervened immediately. They filed a strong objection to the notice. They negotiated with the regional manager. We agreed on a settlement where I paid the principal amount plus 10% interest, and they waived all the penalties. They saved my home."
Service, Delhi
Answers to your queries about settling loans with Piramal Finance.
Don't wait for the police or recovery agents to show up. Take control of your finances with our expert legal help.
Our loan settlement services are available across all states and union territories in India