Ketan Manchanda alleges HDFC Bank refused installment options to settle a personal loan balance of ₹40,000. Read full details, violation points, and 20+ FAQs with RBI rules.
🔎 Complaint Summary : HDFC Bank Refuses Fair Loan Settlement: Ketan Manchanda’s ₹40,000 Dispute Exposes Unempathetic Banking
| Customer Name | Ketan (Kay) Manchanda |
|---|---|
| Profession | Self-Employed |
| Bank Involved | HDFC Bank |
| Complaint Date | August 6, 2025 (based on LinkedIn post) |
| Loan Type | Personal Loan |
| Original Loan Amount | ₹1,20,000 |
| Amount Paid | ₹80,000 |
| Balance Pending | ₹40,000 |
| Issue | Bank not accepting partial settlement via installments |
| Customer Request | Pay remaining amount in parts before Jan 2026 |
| Platform Used | |
| LinkedIn Post URL | Click here to view original post |
📌 Detailed Complaint Write-Up
Ketan Manchanda, a self-employed professional, has taken to LinkedIn to publicly express his frustration over HDFC Bank’s refusal to allow installment-based settlement of his personal loan.
According to Ketan, he borrowed ₹1.2 lakh from HDFC Bank and had already repaid ₹80,000 under agreed terms. However, due to financial challenges, he was unable to repay the remaining ₹40,000 in one go. Despite his willingness to settle the amount before January 2026, HDFC Bank has allegedly refused his request for installment-based repayment.
This has led to a standstill in the settlement process, and the customer is calling for a fair, empathetic approach to debt resolution.
Ketan’s complaint highlights a larger issue in India’s banking sector — the lack of flexibility offered to borrowers undergoing temporary financial difficulties. Many consumers in similar positions are left with few options despite their willingness to repay.
HDFC Bank’s handling of this case raises questions about:
- The bank’s adherence to RBI guidelines on settlement and restructuring.
- The lack of humane and inclusive financial practices.
- Whether customer service departments are adequately empowered to create customized solutions.
If left unresolved, this dispute could escalate to formal channels such as the RBI Ombudsman or legal forums.
🔗 Original Complaint Source
LinkedIn Post by Ketan Manchanda:
Click here to view the original complaint post
❓ Frequently Asked Questions (Q&A)
These are some of the most searched questions related to HDFC Bank loan settlement and consumer rights in India:
1. Can I settle my HDFC personal loan in installments?
Yes, if the bank agrees. While full payment is often preferred, RBI allows banks to offer settlement options in special cases. It’s up to HDFC Bank to evaluate your request.
2. What are the RBI guidelines for personal loan settlement?
As per RBI, banks must offer fair and transparent options to borrowers in financial distress. They may allow restructuring, moratoriums, or settlements based on internal policy.
3. What happens if a loan is not settled in full?
It may be marked as a default, which affects your credit score. However, negotiated settlements or part-payments should be officially recorded to prevent future legal issues.
4. Can banks refuse a customer’s request for loan restructuring?
Yes, banks are not obligated to restructure loans unless mandated by RBI (like during COVID-19). However, a written denial must be provided if requested.
5. Is it legal for a bank to deny EMI-based settlements?
Yes, but ethically and under RBI’s fair practice code, banks are encouraged to offer viable options to borrowers facing genuine difficulties.
6. Will partial loan settlement affect my CIBIL score?
Yes. Even if the bank accepts a lower amount, it may be marked as “settled” instead of “closed,” which negatively impacts your credit report.
7. What is the difference between “settled” and “closed” in a loan account?
“Closed” means the loan was paid as per agreement. “Settled” means a lower amount was paid than originally owed this reflects poorly on your credit history.
8. How can I escalate a loan dispute with HDFC Bank?
If unresolved by the bank, escalate to the RBI Ombudsman using the CMS portal: https://cms.rbi.org.in
9. Can I file a legal complaint against HDFC Bank?
Yes, you may file a complaint in a consumer court or civil court for harassment or unfair banking practices.
10. How much time does HDFC Bank take to resolve settlement requests?
Typically, 7-15 business days. If delays continue beyond 30 days, escalate via email or RBI complaint platforms.
11. Is email communication valid proof in case of banking disputes?
Absolutely. Save all emails, screenshots, and SMS communications for legal and regulatory escalation.
12. Does HDFC Bank have a grievance redressal officer?
Yes. You can escalate unresolved issues to the Nodal Officer. Contact details are available on HDFC Bank’s official website.
13. What is the RBI CMS portal for complaints?
It’s a public platform launched by RBI where you can file complaints against banks and NBFCs: https://cms.rbi.org.in
14. Can I pre-close my HDFC loan without penalty?
HDFC generally allows pre-closure without penalty after a certain period. Check your loan agreement for exact terms.
15. Will HDFC accept a written proposal for settlement?
Yes, you can submit a written letter or email proposing a payment plan. Keep acknowledgment proof for records.
16. How can I check my HDFC loan status online?
Use your HDFC customer ID and registered mobile number on the bank’s loan portal or mobile app.
17. Can I negotiate the pending loan balance with HDFC Bank?
Yes. You can request a reduction in interest or penalty charges and negotiate a payment timeline.
18. Does HDFC offer settlement schemes for financially distressed customers?
Yes, but they’re usually offered after continuous defaults or at the bank’s discretion. Always request in writing.
19. What documents are needed for a loan settlement discussion?
PAN, loan agreement, payment receipts, income proof, and a formal request letter detailing your situation.
20. What are the risks of not settling a loan with HDFC Bank?
Legal notices, asset seizure (in secured loans), poor credit score, and blacklisting from future credit access.
📞 What Should Customers Do in Similar Cases?
- Document everything: Keep all emails, screenshots, and messages.
- Raise official complaints: Start with the bank, then escalate to RBI or consumer forums if needed.
- Ask for clarity: Always request written clarification on bank decisions.
- Stay informed: Know your rights under RBI’s Fair Practices Code and guidelines for consumer protection.
✍️ Final Note
This case serves as a reminder that banks should prioritize empathy and flexibility while safeguarding their financial systems. Consumers like Ketan Manchanda are not avoiding responsibility they’re asking for support during difficult times. HDFC Bank has an opportunity to show leadership by offering fair resolutions rather than rigid rejections.
For more such verified consumer stories, visit Choice4Voice.com India’s fastest-growing consumer advocacy platform.
