KrazyBee (KreditBee) Loan Settlement Guide
If you took a loan through the KreditBee app and are now struggling with repayments, you are likely dealing with KrazyBee Services Limited. Thousands of young professionals across India find themselves in a debt trap due to high-interest digital loans. The ease of getting these loans often masks the aggressive recovery tactics and legal complications that follow a default.
Defaulting on a KreditBee loan can be scary. You might be facing endless calls from recovery agents, threats of legal action, or even arbitration notices. However, there is a way out. Loan Settlement is a legitimate, RBI-recognized process to close your loan for a reduced amount if you are in genuine financial distress.
Important Distinction
KreditBee is the platform (app) you used. KrazyBee Services Pvt Ltd is the NBFC (Non-Banking Financial Company) that actually lent you the money. Your legal obligation and settlement agreement will be with KrazyBee.
Understanding the Lender: KreditBee vs KrazyBee
Many borrowers are confused when they receive legal notices from "KrazyBee" when they applied on "KreditBee". Here is the breakdown:
- KreditBee: A digital Lending Service Provider (LSP). They provide the app interface, customer support, and marketing.
- KrazyBee: An RBI-registered Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI). They provide the capital, hold the loan book, and have the legal right to recover the money.
The Settlement Process
Settling a digital loan requires a slightly different approach than traditional bank loans due to the speed at which these apps operate. Here is the CredSettle roadmap:
Stop the Harassment
Digital lenders are notorious for calling contacts. We immediately revoke their authorization to contact third parties (referencing RBI's digital lending guidelines) and demand all communication come to us.
Evaluate Hardship
We compile proofs of your financial inability to pay (job loss, medical emergency). This is crucial to justify the waiver request.
Negotiation
We propose a One Time Settlement (OTS) to KrazyBee's recovery department. We aim to remove all penal charges and reduce the principal.
Formal Agreement
We secure a formal settlement letter. This step is non-negotiable. Never pay on a verbal promise.
Is Your Legal Notice Fake or Real?
Borrowers often receive threatening messages via WhatsApp claiming to be "Court Summons" or "Police Notices". 95% of these are fake tactics used by recovery agents. Here is how to spot the difference:
| Feature | FAKE NOTICE (Scam) | REAL NOTICE (Legal) |
|---|---|---|
| Delivery Method | WhatsApp, Personal Gmail | Registered Post, Speed Post, or Official Email |
| Language | Threatening ("Arrest in 1 hour", "Police on way") | Formal legal language, citing Acts (Arbitration Act, NI Act) |
| Sender | "Inspector Sharma", "Advocate Raj" (No ID) | KrazyBee Services Ltd or Registered Law Firm |
| Contact | Personal Mobile Number | Landline or Official Customer Care Number |
Handling Real Legal Actions: Arbitration & Section 138
KrazyBee is legally active. If you default, you may face two specific types of legal actions:
1. Arbitration Notice
Most loan agreements include an arbitration clause. You might receive a notice of an arbitration hearing (often online via Presolv360 or similar platforms).
Action: Do not ignore this. CredSettle lawyers can represent you in these proceedings to record your financial hardship and willingness to settle.
2. Section 138 / Section 25
If your EMI auto-debit (NACH) bounces, it can be treated as a criminal offense (similar to a cheque bounce). They may file a case under Section 25 of the Payment and Settlement Systems Act.
Action: Instant settlement is usually the best way to quash these complaints.
KrazyBee Settlement Letter Format
When you propose a settlement, you need to send a formal email to their settlement team. You can use the following template:
To: reachus@kbnbfc.in, grievance@kbnbfc.in
Subject: Settlement Proposal for Loan Account [YOUR_LOAN_ID] - [YOUR_NAME]
Dear Sir/Madam,
I am writing regarding my personal loan (Account No: [YOUR_LOAN_ID]) with KrazyBee Services.
Due to [MENTION_REASON: job loss/medical emergency], I have been unable to pay the EMIs for the last [X] months. I am willing to close this loan permanently but I cannot pay the total outstanding of Rs. [TOTAL_AMOUNT] which includes heavy penalties.
I am requesting a One Time Settlement (OTS) of Rs. [PROPOSED_AMOUNT] to be paid in [1 or 2] installments.
Please confirm if this is acceptable so I can arrange the funds.
Regards,
[YOUR_NAME]
[PHONE_NUMBER]
Once they accept, they will issue an official **Settlement Letter**. Ensure it checks the following:
Checklist for a Valid Settlement Letter
- ✓Source: Must be issued by KrazyBee Services Pvt Ltd or their authorized ARC.
- ✓Exact Amount: The final OTS figure must be clearly stated.
- ✓Withdrawal Clause: Explicit mention that "All pending legal proceedings, including Arbitration Case No. X and Section 138 Case No. Y, will be withdrawn upon payment".
- ✓NOC Timeline: A promise to issue the No Objection Certificate within a specific timeframe (e.g., 15-30 days).
Written Off vs Settled: What is worse?
Many borrowers ask if they should just stop paying (run away) or settle. Here is the reality of the CIBIL impact:
Written Off
(Worst Case Scenario)
- Means the lender has given up on recovery but still owns the debt.
- CIBIL Score drops by 150-200 points.
- Legal cases (Arbitration/Section 138) may continue for years.
- Zero chance of getting a loan for 7+ years.
Settled
(Practical Solution)
- Means the debt is closed by mutual agreement.
- CIBIL Score drops by 50-100 points but stabilizes.
- Immediate stop to all legal actions and harassment.
- You can rebuild score in 12-18 months using secured cards.
Grievance Redressal Mechanism
If you are facing abusive behavior from recovery agents or if your layout settlement request is being ignored, you can escalate via the following matrix:
| Level | Officer Role | Contact |
|---|---|---|
| Level 1 | Grievance Redressal Officer | 080-44292555 reachus@kbnbfc.in |
| Level 2 | Nodal Officer | 080-44292244 grievance@kbnbfc.in |
| Level 3 | RBI Ombudsman | cms.rbi.org.in Call 14448 |
Why Trust CredSettle?
We understand the specific anxiety caused by digital lending apps. Our team has successfully settled hundreds of KrazyBee cases.
Anti-Harassment
We leverage digital lending laws to stop agent calls to your contacts.
Arbitration Experts
Our lawyers are experienced in handling digital arbitration notices.
Proven Results
Average savings of 40-50% on principal+interest.
Success-Based
We don't charge negotiation fees upfront. We win, you pay.
Recent KrazyBee Settlements
"Agents were calling my HR. I was terrified. CredSettle sent a legal notice to stop the harassment instantly. They settled my 50k loan for 22k."
"Received an arbitration notice from KrazyBee. I didn't know what to do. The CredSettle legal team handled the hearing and closed the case swiftly."
Frequently Asked Questions
Can I settle my KreditBee personal loan?
Yes, KreditBee loans (which are financed by KrazyBee or other partner NBFCs) can be settled if you are unable to repay. This involves paying a one-time reduced amount to close the loan account.
Why am I getting notices from KrazyBee Services?
KrazyBee Services Ltd. is the registered NBFC that lends money through the KreditBee app. Even if you took the loan on the KreditBee app, the legal entity you owe money to is likely KrazyBee, which is why you receive notices from them.
Does KreditBee/KrazyBee file legal cases?
Yes, they are known to initiate arbitration proceedings and can file criminal complaints under Section 138 of the Negotiable Instruments Act if an EMI repayment cheque or NACH mandate bounces.
How do I stop KreditBee agents from calling my parents?
Harassing relatives is against RBI guidelines. You can stop this by formally engaging a settlement firm like CredSettle to represent you. We issue a legal notice to them to stop contacting third parties and route all communication through us.
Is the WhatsApp legal notice from KreditBee real?
Most legal notices sent via WhatsApp that threaten 'Immediate Arrest' or 'Police Visit' are FAKE. A real arbitration notice is usually sent via registered post or official email and will contain a specific case number and hearing link.
What is the settlement percentage for KrazyBee loans?
Settlements often range between 30% to 50% of the total outstanding amount, depending on the delinquency period (how long you haven't paid) and your proven financial hardship.
Will settlement affect my CIBIL score?
Yes, the account will be marked as 'Settled' appearing in your credit report for 7 years. This is a negative status but is better than a 'Written Off' status or an active legal case.
Who is the Grievance Officer for KrazyBee?
As of 2026, the Grievance Redressal Officer can be reached at 080-44292555 or reachus@kbnbfc.in. If unresolved, escalations go to the Nodal Officer at grievance@kbnbfc.in.
What should be in the KrazyBee settlement letter?
The letter must be on KrazyBee letterhead, stating the agreed amount, payment deadline, loan account number, and explicitly mentioning that upon payment, the loan is closed and any legal proceedings will be withdrawn.
Can I settle if my case is in arbitration?
Yes, arbitration is a dispute resolution mechanism. You can settle the loan even during arbitration. The settlement agreement should serve as the consent terms to close the arbitration proceedings.