Is your name in bank's defaulter list What you must do |
Posted: February 15, 2017 |
Nowadays you can get a loan to meet almost any need. For instance, if you wish to own a house you can get a home loan or if you want to study abroad you can get a student loan or if you are looking for sources to fund the expenses of a wedding or a vacation you can get a personal loan. While the different loans in the market catering to the different demands, the common factor is that EMIs must be paid on time. Failing to do so can tarnish land you in the bank loan defaulters list. Once your name is in the bank loan defaulters list, it becomes very difficult to avail any credit in the future. The list comprises of the names of the individuals who have taken out a loan and have failed to make the payments.
To get off the bank loan defaulters list, one needs to reach out to the respective lending institution. Create a payment plan which will convince the lender that all your dues will be cleared shortly. You must have the required amount with you to pay off the pending expenses. Once you have managed to clear all the outstanding dues, your name will automatically be removed from the bank loan defaulters list. Landing in this list can cause serious damage to your creditworthiness as well. Having a bad credit score will make it difficult to avail loans and even credit cards in the future. You would have to invest considerable time in trying to improve credit score. Since the damage caused by finding your name in the list is significant, one must be cautious about how loans are treated.
The best way to avoid landing in the list is by practicing financial discipline at the earliest. If you want to take out a loan, create an account where the funds will be used solely for the purpose of repaying the loan. Ensuring that repayments are made on time will help improve credit score. Efforts taken to improve credit score minimizes the chances of you ending up in looking for a personal loan for low CIBIL Score. Another essential point to remember is that you must avoid looking credit hungry. Refrain from taking on too many loans. Not only does this hurt your efforts to improve credit score, the possibility of failing to repay the dues also increases. Also only take out loans for the needs you deem necessary. Doing so also makes it easier to keep track of your loans and how much is required to clear off the pending dues.
Make it a practice to regularly check your credit report. Not only does this help you stay updated about your financial status, you can also be quick to spot any errors. Your lending institution could make a mistake in marking you in the defaulter list. This happens when they mix up your details that may be similar to that of an actual defaulter. When this occurs you can raise a CIBIL dispute over the same. The credit bureau will inform your lending institution about the mistake and the rectification will be made in a matter of days. Doing this will improve credit score and your name will no longer be in the list.
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