Tamil Nadu is an economic powerhouse, home to Chennai's booming SaaS industry, Coimbatore's precision engineering, and Tirupur's global textile dominance. Yet, behind this industrial success lies a silent crisis of debt. The high cost of urban living in Chennai, fluctuating yarn prices affecting MSMEs, and the predatory menace of "Kanduvatti" (usury) have trapped thousands in a cycle of financial stress.
Whether you are a software engineer in Taramani facing credit card pile-ups or a textile unit owner in Erode struggling with business loans, there is a legal way out. AMA Legal Solutions brings authoritative legal expertise to help you stop harassment, reduce your debt burden, and regain your peace of mind.
"OTS is your legal right to exit a debt trap with dignity."
It involves negotiating with the bank to waive off the accumulated interest and penalties, allowing you to pay just a portion of the principal (or slightly more) to close the account forever.
You get a formal "Settlement Letter" from the bank. The harassment stops immediately. You become debt-free in months, not years.
Tamil Nadu has some of the stringent laws in India against predatory lending. We use these laws as a shield for our clients.
Commonly known as the Anti-Kanduvatti Act, this powerful law was enacted to crush the practice of usury.
You can petition the court to deposit the legal principal amount. The court can declare the loan discharged. Lenders face up to 3 years in jail and ₹30,000 fine.
The latest weapon in borrower protection. This Act specifically targets modern "Fintech Loan Apps" and "Micro-finance" companies.
High salaries in Chennai's SaaS boom often come with high liabilities. One missed project deadline or layoff can spiral finances out of control.
Paying the "Minimum Due" on your HDFC or Citibank card feels safe, but at 42% APR, your debt doubles every 2 years. We help you break this cycle.
Taking a Personal Loan to pay off a Credit Card is common but dangerous. We negotiate a combined settlement for all your unsecured debts.
For the industrial belt of Western Tamil Nadu, the challenge is operational debt. Spiraling yarn prices and power tariffs have pushed many thriving units into the NPA zone.
Many business owners fear that NPA means the end. It doesn't.
We help you apply for MSME Restructuring schemes that extend the tenure and lower the EMI, preventing the bank from auctioning your assets under SARFAESI.
We negotiate a settlement (OTS) to close the loan at 25-40% of the value, citing market volatility as the genuine reason for default.
Ref: Kuna Santhosh Kumar vs. RBI (Madras HC, April 2024)
In this landmark judgment, the Madras High Court explicitly stated that banks cannot use "muscle power" or goons to recover loans. It directed that any agent visiting a borrower must carry an ID card and authorization. Violent recovery is a violation of your fundamental rights (Article 21).
Ref: Recent Cyber Wing Circulars
The Tamil Nadu Police Cyber Wing, backed by court directives, has made it a priority to book loan apps that morph photos or harass contacts. We use these circulars to file strong cyber complaints (CSR) that force these apps to delete your data.
We issue a legal notice under the 2003 Kanduvatti Act or relevant banking codes to the lender. This immediately shifts the power dynamic. They know you are legally represented.
We analyze your "True Paying Capacity". We prove to the bank that you simply cannot pay the inflated amount, backing it with income proofs and other liability statements.
Our team negotiates directly with the Credit Managers at the bank's zonal offices in Chennai or Mumbai, bypassing the aggressive local collection agents who have no decision-making power.
You pay the agreed settlement amount directly to the bank (never to us or an agent). We review the Settlement Letter to ensure there are no hidden clauses.
If agents are at your home or work, use these resources.
Emergency: 100 / 112
Cyber Crime: 1930
Chennai Anti-Kanduvatti Cell: Check local commissionerate listings.
The Tamil Nadu Police's official app "Kaaval Uthavi" has an SOS button that sends your live location to the nearest control room. Use this if agents are threatening you physically.
We cover every major district with a mix of digital negotiation and local legal support.
Metro Region
Textile/Engg Hub
Temple City
Export Hub
Steel City
Central TN
Turmeric City
Southern Hub
No, 'Kanduvatti' (charging exorbitant interest) is strictly illegal under the Tamil Nadu Prohibition of Charging Exorbitant Interest Act, 2003. Lenders charging daily interest (Meter Vatti), hourly interest, or rates above the government-mandated cap can face up to 3 years of imprisonment. We help you file complaints and settle only the principal + legal interest.
The Tamil Nadu Money Lending Entities (Prevention of Coercive Actions) Act, 2025, is a recent legislation designed to stop aggressive recovery by fintech apps and micro-finance companies. It criminalizes harassment, public shaming, and threats by recovery agents. It also holds the directors of these lending companies liable for the actions of their agents.
Yes, we specialize in helping Chennai's tech workforce. Whether you work in OMR, Porur, or Siruseri, we know the pressure of high rents and lifestyle costs. We negotiate with banks (HDFC, ICICI, Citi, etc.) to consolidate your multiple credit card dues into a single settlement, saving you up to 50% and stopping the harassment.
Absolutely. We understand the crisis caused by fluctuating yarn prices and electricity costs. We assist MSMEs in Tirupur and Coimbatore in restructuring their business loans or opting for One Time Settlement (OTS) without declaring bankruptcy, allowing you to keep your machinery and operations running.
Yes. The Madras High Court (Justice Kuna Santhosh Kumar vs RBI case, April 2024) strictly banned banks from sending agents to borrowers' homes to threaten them. We use this judgment to issue legal notices to banks if they send 'musclemen' to your doorstep, forcing them to back down and negotiate civilly.
You can use the 'Kaaval Uthavi' app or dial 100/112. For Kanduvatti specifically, many districts have dedicated cells. We assist you in drafting a formal police complaint that cites the specific sections of the 2003 Act, increasing the chances of an FIR being registered against the illegal lender.
Yes, a settlement drops your score initially as the account is marked 'Settled'. However, this is better than a 'Write-off' or 'Suit Filed' status. We provide a post-settlement credit repair guide to help you rebuild your score to 750+ within 18-24 months.
'Meter Vatti' is a predatory practice where interest is charged on an hourly or daily basis on the loan amount not paid. This is a criminal offense. If you are a victim, do not pay another rupee. Contact us immediately. We will help you deposit the legal principal amount in court under the 2003 Act and get the loan declared as discharged.
Yes, AMA Legal Solutions has a pan-Tamil Nadu presence. We have associate lawyers in Madurai, Salem, Trichy, and Erode to handle physical court appearances or Lok Adalat representations if required, while our central team handles the bank negotiations.
While it depends on the delinquency period, we typically save clients 40-60% of the total outstanding amount. We aim for a 'Principal-Only' settlement where possible, waiving off the accumulated penalties and exorbitant interest.
Speak to our senior loan settlement lawyers today.
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Our loan settlement services are available across all states and union territories in India