Loan Settlement: Procedure, Impact on Credit Score Under the Insolvency & Bankruptcy Code

Ancoraa Resolution16 Sep, 2023Finance

This legal framework provides a structured mechanism for borrowers and lenders to resolve debt-related issues, offering a lifeline to individuals and businesses facing financial distress. However, loan settlement procedure can have both positive and negative consequences, particularly on the borrower's credit score. In this blog, we will explore the procedure for loan settlement under the IBC and discuss its impact on the borrower's credit score.