Education loan repayment
Seenivasan P
(Querist) 16 October 2017
This query is : Resolved
Hi sir,
My name is Seenivasan, since I have taken education loan of 1.8lakh on the period of 2009 to 2013. My dad paid interest for the first year after that bank manager told no need to pay interest. After that dad left so financially my family became weak. After long struggle I got job in private banking sector,7 months ago but since I am unable to pay my education loan they filed complaint in court and which affected my cibil. Currently planning to one time settlement being a bank employee I must have dignity to repay my payments. Currently I don't have savings of 1.8 and due to cibil score affected even I can't apply for loan. If I took 1 year to settle my education capital amount only through court thus it possible to settle only the capital amount only by requesting honorable judge. How much cibil score will be reduced meanwhile. Since if it goes below 500 I may loose my job also . I am totally confused .kindly suggest me the which path should I take?
Regards
Seenivasan P
Rajendra K Goyal
(Expert) 16 October 2017
Payment can improve your CIBIL score. You have taken loan, it is your moral duty to pay.
It is doubtful your service would be effected due to low CIBIL score.
Payment by settlement may not improve your score at required level.
If your score is so much low, it seems you have defaulted other loans / credit card payments also.
If Bank does not agree for settlement, may try through Lok Adalat if case is sent there.
P. Venu
(Expert) 17 October 2017
Even settling the loan through a compromise may adversely affect your CIBIL score. Please verify.
Rajendra K Goyal
(Expert) 17 October 2017
Expert P. Venu ji,
If the loan is paid by settlement, fact is shown in the CIBIL report, it means that loan was not paid as per agreement and lender has to settle the loan forgoing a considerable part of outstanding to avoid litigation. It is adverse situation in the eyes of lender considering CIBIL report. CIBIL Score is also effected adversely.
Some Banks overlooks settlement in case of credit card outstanding.
Regards
