Punjab National Bank (PNB) is a major player in India’s banking sector, providing a wide array of services, including credit cards. However, there may come a time when paying off your Punjab National Bank credit card dues becomes a challenge due to financial constraints. If you’re in such a situation, understanding the credit card settlement process with PNB can provide much-needed relief. In this comprehensive guide, we’ll explore how to approach the settlement process for your Punjab National Bank credit card and ensure a smoother resolution to your debt issues.
Credit card settlement is a method through which a borrower can close their debt with the bank by paying a portion of the total outstanding amount. The settlement usually involves a one-time lump sum payment of a reduced amount, typically agreed upon through negotiation with the bank.
It’s important to note that credit card settlement doesn’t mean the debt is paid off in full. The bank agrees to “settle” for a lower amount in cases where the borrower faces significant financial distress.
Considering a credit card settlement should be your last option if you’re struggling to repay your PNB credit card debt. You might opt for settlement in the following cases:
Settling a credit card debt should only be chosen when other repayment methods have been exhausted, as it will have an impact on your credit score.
Before approaching Punjab National Bank, take stock of your financial position. You need to have a clear idea of your outstanding dues and how much you can realistically pay as a settlement. This will help you during the negotiation process.
Reach out to PNB’s credit card division or customer care department to initiate the settlement discussion. You can do this through:
Be prepared to explain why you cannot pay the full amount and emphasise your willingness to settle the dues.
PNB will review your case and may offer a settlement amount, which is often a percentage of the total dues (typically between 50-80%). Be sure to negotiate effectively, as the bank may be open to revising the terms, especially if you’re willing to make a lump sum payment.
During negotiations, clarify:
It is advisable to stay firm on an amount you can afford while being realistic about what the bank might accept.
Once a settlement amount has been agreed upon, ensure you receive a written settlement agreement from Punjab National Bank. This agreement should clearly state:
Having a written agreement will protect you from any future complications or additional demands.
After making the payment, it is crucial to obtain a No Dues Certificate or a Settlement Completion Letter from the bank. This document confirms that you’ve settled the credit card dues, and no further payments are owed.
You should also check with the bank to ensure your credit report reflects that the account has been settled to avoid issues later.
Punjab National Bank’s settlement policy aims to help customers in financial distress by offering settlement options. Here’s a quick look at PNB’s settlement policy:
While credit card settlement might offer immediate financial relief, it does come with a downside — it affects your credit score. Here’s how:
However, the good news is that settling the debt can help prevent further damage from ongoing defaults.
If you want to avoid the negative impact on your credit score, you might want to explore some alternatives:
PNB offers the option to convert your outstanding credit card dues into EMIs. This allows you to pay off the debt in smaller, manageable instalments over a period of time, without resorting to settlement.
Another option is to transfer your outstanding balance to a credit card with a lower interest rate. This helps you pay off the dues more easily, without affecting your credit score.
Consider taking out a personal loan to consolidate your debt. The loan can be used to pay off your credit card debt, and you can then repay the loan over time with lower interest rates.
Settling your Punjab National Bank credit card dues can help you alleviate the burden of debt, but it should only be pursued as a last resort. By following the steps outlined in this guide — from negotiating with the bank to securing written documentation — you can ensure that the process goes smoothly and that you avoid future complications.
While credit card settlement can give you immediate financial relief, it does impact your credit score. Thus, it’s important to carefully weigh the pros and cons before deciding to proceed. If settlement seems like the right option for you, taking the correct steps can make a huge difference in your financial health and peace of mind.
Que: How much will PNB reduce in a credit card settlement?
Ans: Punjab National Bank generally settles for around 50-80% of the total outstanding dues, depending on your financial situation and negotiation.
Que: How long does it take to settle PNB credit card dues?
Ans: The settlement process typically takes between 30-60 days, depending on how quickly the negotiation is completed and the payment is made.
Que: Can I improve my credit score after settling my PNB credit card debt?
Ans: Yes, while settling your credit card debt impacts your credit score, you can work towards rebuilding it by making timely payments on other credit obligations and using credit responsibly going forward.
Que: Is it necessary to get a No Dues Certificate after settling the debt?
Ans: Yes, always ensure you obtain a No Dues Certificate or Settlement Completion Letter from Punjab National Bank after completing the settlement. This will serve as proof that the debt has been fully resolved.
Founded in 2015, Ahk Tips is a New Delhi-based financial advisor specializing in debt relief and loan management solutions.
