AU Small Finance Bank is a prominent player in the Indian banking sector, known for its vehicle loans, small business loans, and personal banking services. However, financial instability can strike anyone. If you are struggling to pay your EMIs due to job loss, business failure, or medical emergencies, you are not alone.
Defaulting on a loan can lead to aggressive recovery tactics, including frequent calls, home visits, and even threats of vehicle seizure. Ignoring the problem will only lead to legal complications like arbitration or SARFAESI notices.
At AMA Legal Solutions, we specialize in negotiating with banks like AU Small Finance Bank. We help you secure a One Time Settlement (OTS) that is affordable and legally binding, allowing you to clear your debt and regain your peace of mind.
Commercial or personal vehicle loans. We help prevent seizure and settle the outstanding amount.
Unsecured personal loans taken for medical, wedding, or other personal needs.
Small business loans (MSME) or working capital loans that have turned into NPAs.
OTS is a legal provision where the bank agrees to accept a lump sum payment lower than the total outstanding amount to close the loan account permanently. This is usually offered to borrowers who have genuinely defaulted and cannot pay the full amount.
The bank waives off the accumulated penal interest and late fees, significantly reducing the burden.
All legal proceedings, including cheque bounce cases and arbitration, are withdrawn upon settlement.
For secured loans, settlement prevents the bank from auctioning your property or vehicle.
Your loan account must be classified as a Non-Performing Asset (NPA), usually after 90 days of non-payment.
You must demonstrate a genuine inability to pay due to reasons like job loss, business failure, or health crisis.
Personal loans and credit card debts are easier to settle as they are unsecured.
For vehicle loans, if the vehicle value is less than the loan outstanding, settlement is a viable option.
We analyze your loan details, outstanding amount, and financial status.
We inform AU Bank that we are representing you, stopping direct harassment.
We draft and submit a formal settlement proposal highlighting your hardship.
Our experts negotiate with the bank's credit team for the maximum possible waiver.
Once approved, you receive a formal settlement letter. You pay, and the loan is closed.
As a borrower, you have specific rights protected by RBI guidelines.
Recovery agents cannot use abusive language, threaten you, or call at odd hours (before 7 AM or after 7 PM).
For vehicle repossession, the bank must follow a legal process and cannot simply snatch your vehicle by force.
Civil suits, SARFAESI action (for secured loans), and Section 138 cases for cheque bounce.
The bank may initiate arbitration proceedings, leading to an award against you which can be executed as a court decree.
For secured loans, your pledged assets (car, property) can be seized and auctioned to recover dues.
Settling a loan will reflect as "Settled" in your credit report, which does impact your score. However, it is far better than a "Written Off" or "Willful Default" status. A settled status stops the monthly negative reporting, allowing you to eventually rebuild your creditworthiness.
We have extensive experience dealing with AU Small Finance Bank's recovery and legal teams.
We handle all legal notices and represent you in arbitration or court if necessary.
Our goal is to get you the maximum possible waiver on interest and penalties.
"I had a commercial vehicle loan with AU Bank. Due to lack of business, I couldn't pay. They were about to seize my truck. AMA Legal helped me settle the loan and save my livelihood."
Ramesh Singh
Transporter, Delhi
"My personal loan EMI was bouncing, and the harassment was unbearable. AMA Legal Solutions took over the communication and settled the loan for 40% less."
Priya Sharma
Teacher, Jaipur
Common queries about settling loans with AU Small Finance Bank
Our loan settlement services are available across all states and union territories in India