Assam is a land of strength, but its people face unique challenges. From the tea gardens of Upper Assam to the flood-prone plains of Lower Assam, financial stability is often disrupted by nature and market forces.
The Microfinance Crisis has left many women in debt traps, while small businesses in Guwahati often struggle after floods. But you don't have to face this alone.
AMA Legal Solutions assists the people of Assam in settling loans legally. We leverage the Assam Microfinance Incentive and Relief Scheme (AMFIRS) and other legal provisions to help you regain your financial freedom.
"Loan settlement, or One Time Settlement (OTS), is a legal negotiation where the bank agrees to accept a reduced lump sum amount to close a loan account that has become a Non-Performing Asset (NPA)."
For a flood-affected trader, this could mean paying only a part of the principal amount to close a business loan, with interest waived off due to 'Force Majeure'.
We assist with:
Assam has specific laws to protect borrowers, especially from aggressive recovery.
This Act was introduced to regulate microfinance institutions and protect borrowers from high interest rates and coercive recovery. It mandates fair practices and prohibits harassment. If an MFI agent is harassing you, they are violating this law.
This law requires all money lenders to be registered and caps the interest rates they can charge. Loans from unregistered lenders with exorbitant interest are illegal and can be challenged in court.
The Assam Microfinance Incentive and Relief Scheme provides state support to clear overdue loans for eligible borrowers.
The Assam State Legal Services Authority conducts Lok Adalats for quick and amicable settlement of bank disputes.
We guide you through a structured process to achieve financial freedom.
We send a legal notice to the bank. This stops them from calling you directly and compels them to communicate only through us.
We analyze your situation. For MFI borrowers, we check eligibility under AMFIRS. For farmers, we document flood damage.
Our team negotiates with bank officials to reduce the outstanding amount, aiming for a waiver of interest and penalties.
We review the settlement letter. Once you pay the agreed amount, we ensure you receive a No Dues Certificate.
Workers in Dibrugarh, Tinsukia, and Jorhat often face financial hardship due to low wages or garden closures (like the ATCL crisis).
Compassionate Settlement: We use your socio-economic status and any wage delays as strong grounds to negotiate with banks for personal loan settlements. We ensure you are not exploited by private lenders within the garden.
The microfinance crisis in Assam has affected thousands of women.
Floods are a recurring reality in Assam. If your business or farm has been affected by the Brahmaputra's fury:
Force Majeure: We argue that your inability to pay is due to a natural calamity beyond your control. This is a valid legal ground to seek loan restructuring, moratoriums, or significant interest waivers from banks.
The ASLSA actively promotes Lok Adalats for bank recovery cases.
Why it works: It is a non-adversarial forum where you can sit across the table with bank officials and a mediator to reach a compromise. The settlement is final, and you save on legal costs. We can represent you in Lok Adalats across Assam.
Our expertise covers various types of loans common in Assam.
Relief for SHG and JLG borrowers.
Personal loans for plantation workers.
Settlement for flood-affected traders.
Relief for farmers facing crop loss.
Settlement will be reported to CIBIL, but it is a necessary step to regain financial control.
The Trade-off: A temporary dip in your credit score is better than facing legal action or losing your assets. Once settled, you can rebuild your score over time.
Silence can lead to legal escalation. Always respond, preferably through a lawyer.
Avoid illegal money lenders. If you are already trapped, use the Money Lenders Act for protection.
Do not be intimidated by harassment. The law protects you. Report them to us immediately.
To start your settlement process, we will need:
We are committed to protecting the people of Assam.
Deep knowledge of the state's microfinance relief scheme.
Specialized in 'Force Majeure' settlements for flood victims.
We take strong legal action against harassment by MFI agents.
"I run a small shop in Guwahati. The floods destroyed my stock, and I couldn't pay my loan. AMA Legal helped me get a moratorium and then settle the loan for a much lower amount."
Dipankar B.
Guwahati
"I had multiple microfinance loans and was being harassed. AMA lawyers explained the AMFIRS scheme to me and helped me settle my debts without any fear."
Sunita M.
Nagaon
Yes, loan settlement is a fully legal process. It is often facilitated through Lok Adalats organized by the Assam State Legal Services Authority (ASLSA) and is a recognized method for resolving Non-Performing Assets (NPAs) with banks.
The Assam Microfinance Incentive and Relief Scheme (AMFIRS) is a state government initiative to help borrowers. It provides relief in three categories: incentives for regular payers, clearing overdues for those with 1-89 days delay, and settling NPAs for stressed borrowers. We can help you understand your eligibility.
Yes. We understand the financial struggles of tea garden workers, especially with issues like delayed wages or the ATCL crisis. We can negotiate with banks to settle personal loans or microfinance debts based on your current financial hardship.
Yes. Frequent floods in the Brahmaputra valley are a valid 'Force Majeure' condition. We can help you negotiate with the bank for a moratorium, restructuring, or a One Time Settlement (OTS) for your agricultural or business loan due to this natural calamity.
Yes. The Assam Money Lenders Act, 1934, and the Assam Micro Finance Institutions (Regulation of Money Lending) Act, 2020, strictly regulate lending. Lenders must be registered and cannot charge exorbitant interest. Unregistered lending is illegal.
No. The Assam Micro Finance Institutions Act, 2020, and RBI guidelines strictly prohibit harassment. Agents cannot visit you at odd hours, use abusive language, or coerce you. If they do, we can take legal action.
Lok Adalats in Assam are effective forums for settling bank disputes amicably. They allow you to negotiate directly with the bank for a reduced settlement amount. The award passed is final and binding, saving you from long court cases.
You will need your loan account statement, identity proof (Aadhar/PAN), proof of income loss (e.g., flood damage report, medical records), and details of any microfinance loans if applying under AMFIRS.
Yes, a settlement is reported to credit bureaus and will temporarily lower your score. However, it stops legal action and allows you to become debt-free, which is the first step to rebuilding your financial health.
We have expertise in Assam's specific laws like the AMFIRS scheme and Money Lenders Act. We protect tea garden workers, farmers, and small business owners from harassment and negotiate fair settlements with banks.
Speak to our senior loan settlement lawyers in Assam today.
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