Axis Bank Credit Card Settlement: How to Reduce Your Outstanding Dues
Credit card debt can become overwhelming, and if you’re struggling to repay your Axis Bank credit card dues, you may be considering settlement as an option. Credit card settlement allows you to negotiate with the bank to pay a reduced amount instead of the full outstanding balance. However, it’s important to understand the process, its impact on your credit score, and how to avoid harassment from recovery agents.
In this guide, we’ll walk you through the Axis Bank credit card settlement process, your legal rights, and how to handle negotiations effectively.
What is Credit Card Settlement?
Credit card settlement is a process where the bank agrees to accept a lower lump sum amount from a borrower who is unable to repay the full outstanding dues. This is usually considered a last resort when the borrower is facing severe financial difficulties.
Example:
If your outstanding balance is ₹2,00,000, Axis Bank may agree to settle the debt for ₹1,20,000 as a one-time payment. However, the account will be marked as “Settled” in your CIBIL report, which negatively affects your credit score.
How to Apply for Axis Bank Credit Card Settlement
If you’re unable to clear your Axis Bank credit card dues, follow these steps to negotiate a settlement:
1. Assess Your Financial Situation
- Calculate how much you can afford to pay as a lump sum.
- The more you can pay upfront, the higher your chances of getting a favorable settlement.
2. Contact Axis Bank’s Debt Settlement Department
- Call Axis Bank’s customer care and request to speak with the debt recovery team.
- Explain your financial hardship and ask about possible settlement options.
3. Negotiate the Settlement Amount
- The bank will initially offer a high settlement amount. Don’t accept the first offer.
- You can negotiate for a lower amount based on your financial condition.
- Always request a written confirmation of the settlement amount.
4. Get the Settlement Agreement in Writing
- Never make any payment without a written agreement from Axis Bank.
- The settlement letter should clearly mention:
✅ The agreed settlement amount
✅ The payment deadline
✅ Confirmation that no further dues will be claimed after settlement
5. Make the Payment & Obtain an NOC
- Pay the agreed amount before the deadline.
- Request a No Objection Certificate (NOC) from Axis Bank as proof that your dues have been settled.
6. Check Your Credit Report
- After the settlement, check your CIBIL report to ensure the status is updated correctly.
- If you find errors, contact the bank and CIBIL for corrections.
Pros and Cons of Axis Bank Credit Card Settlement
✔ Pros:
✅ Reduces your overall debt burden
✅ Helps you avoid legal action from the bank
✅ Stops continuous follow-up calls and recovery agent visits
❌ Cons:
🚫 Negatively impacts your CIBIL score
🚫 Future loan approvals may become difficult
🚫 Some banks may reject settlement requests
Dealing with Harassment from Axis Bank Recovery Agents
Many borrowers face harassment from bank agents during the collection process. Know your legal rights:
✔ Banks & recovery agents CANNOT
🚫 Call you at odd hours (before 7 AM or after 9 PM)
🚫 Use abusive language or threats
🚫 Visit your home or office repeatedly
🚫 Publicly shame or disclose your debt to relatives & colleagues
✔ What to Do If You Face Harassment?
🔹 Request written communication – Avoid verbal threats or pressure.
🔹 File a complaint with Axis Bank’s grievance cell.
🔹 Report to the Banking Ombudsman if harassment continues.
🔹 Seek legal assistance if needed.
Alternatives to Credit Card Settlement
If settlement is not the right option for you, consider these alternatives:
🔹 Convert the balance into EMIs – Request Axis Bank to restructure the dues into smaller affordable EMIs.
🔹 Apply for a balance transfer – Transfer your outstanding dues to a low-interest credit card or personal loan.
🔹 Debt consolidation loan – Take a single loan to clear all outstanding debts and repay in smaller EMIs.
Need Help with Credit Card Settlement?
If you’re struggling with Axis Bank credit card debt or facing harassment from recovery agents, we can help you negotiate a fair settlement and ensure your rights are protected.
📞 Call Now: 1800-309-1902
📧 Email Us: info@settleloan.in
