One-time settlement offer calculator

Use this calculator when a bank, NBFC or its collection agency offers you a one-time settlement (OTS). Enter the total dues the lender says you owe (principal, interest and charges, as shown on its latest statement or settlement offer), the waiver it offers as a percentage, and any extra fixed amount it agrees to drop, such as penal charges.

Formula: amount waived = total dues × waiver % + extra fixed waiver. Settlement amount = total dues − amount waived.

Worked example (illustrative): dues of ₹3,20,000 and a 35% waiver. The lender gives up ₹3,20,000 × 35% = ₹1,12,000, and you pay ₹2,08,000. If the lender also drops ₹10,000 of charges, you pay ₹1,98,000.

What it does not show:

• the cost of a "settled" status on your credit report, which can make future loans dearer or harder to get (see settle or keep paying);
• whether paying in instalments changes the offer;
• any tax consequences of a waiver, which depend on your situation; ask a tax adviser if the waiver is large or the loan was for business.

Always compare the offer with a restructured repayment plan and get the final terms in writing before paying. Read how to negotiate the settlement letter.