Facing SARFAESI notices, arbitration, or harassment? We specialize in negotiating One Time Settlements (OTS) for Piramal Finance housing, business, and personal loans.
Piramal Finance, officially known as Piramal Capital & Housing Finance Limited (PCHFL), is one of India's leading Non-Banking Financial Companies (NBFCs). Following its acquisition of the troubled Dewan Housing Finance Corporation Limited (DHFL), Piramal Finance significantly expanded its retail portfolio, becoming a major player in housing finance, real estate lending, and small business credit.
While Piramal Finance provides essential credit to millions, their recovery mechanisms—especially for those who inherited loans from DHFL or took new high-interest personal loans—can be stringent. The company employs a robust legal framework to recover dues, utilizing the SARFAESI Act for secured assets and arbitration for unsecured debts.
For a borrower facing financial distress due to job loss, business failure, or medical emergencies, dealing with a large financial institution like Piramal can be intimidating. The fear of losing one's home or facing legal prosecution is real. However, it is crucial to understand that defaulting on a loan is a civil matter, not a crime (unless fraud is involved). You have legal rights and options to settle your debt with dignity.
AMA Legal Solutions specializes in bridging the gap between distressed borrowers and Piramal Finance. We understand their internal settlement policies, the legal nuances of the SARFAESI Act, and how to effectively negotiate a One Time Settlement (OTS) that is affordable for you.
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 gives banks purely draconian powers to seize property without going to court.
AMA Legal Intervention: We can challenge these notices in the Debt Recovery Tribunal (DRT) or negotiate a settlement before possession is taken.
For personal and business loans, Piramal Finance often appoints a sole arbitrator. The proceedings are usually held in a location convenient to the lender (often Mumbai or Delhi), making it hard for borrowers to attend.
If your EMI cheque bounces or NACH mandate fails, they can file a criminal case under Section 138 of the Negotiable Instruments Act or Section 25 of the Payment and Settlement Systems Act. This is a bailable offense but requires mandatory court appearance.
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 had a business loan of ₹25 Lakhs with Piramal. When my factory shut down during the pandemic, I couldn't pay. They sent a legal notice and threatened to file a cheque bounce case. I was suicidal. AMA Legal handled the case professionally, attended the arbitration, and settled it for ₹12 Lakhs. I can finally breathe."
Business Owner, Ahmedabad
"My home loan was in default for 6 months. I received a Section 13(2) notice under SARFAESI. I was terrified of losing my house. AMA Legal intervened and helped me restructure the loan with Piramal, giving me a 6-month moratorium to find a new job. 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