Why personal loan settlement is different
Personal loans are unsecured — Punjab National Bank has no collateral to enforce, which structurally increases the discount they accept rather than write off the loan.
Discount range you can expect
Typical Punjab National Bank personal loan settlements close at 30–50% of outstanding. Older NPAs with the recovery agency settle at deeper discounts.
Process
Assessment → written settlement proposal → negotiation with Punjab National Bank's recovery team or collection agency → sanction letter → lump-sum / 2–3 tranche payment → NOC.
Risks to be aware of
Verbal offers from agents are not binding. Always insist on a sanction letter on Punjab National Bank letterhead before paying.