Getting rid of a loan default in India typically involves several steps :

Assess the Situation :

Understand the terms of your loan, including outstanding balance, interest rates, and any penalties for defaulting.

Contact the Lender :

Communicate with your lender to discuss your situation. They may offer options such as restructuring the loan, extending the repayment period, or negotiating a settlement.

Negotiate :

Try to negotiate with the lender for a repayment plan that you can afford. Be honest about your financial situation and willingness to repay the loan.

Seek Professional Help :

Consider seeking advice from financial advisors or credit counselors who can provide guidance on managing your debts and negotiating with lenders.

Legal Options :

If necessary, explore legal options such as debt settlement or bankruptcy. However, these options should be considered as a last resort and may have long-term consequences.

Stay Committed :

Once you’ve agreed on a repayment plan, stick to it. Make regular payments to gradually clear the debt and improve your credit score.

Remember, resolving a loan default takes time and effort, but it’s possible with determination and responsible financial management.

Is lending illegal in India?

Lending is not illegal in India. In fact, lending activities are regulated by various financial institutions and laws to ensure transparency, fairness, and consumer protection. Banks, non-banking financial companies (NBFCs), microfinance institutions, and other financial entities operate under the purview of regulatory authorities such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). However, there are regulations and guidelines in place to govern lending practices and protect borrowers from predatory lending practices.