Help required with home loan

Well, the sanction and disbursement of the loan is at the discretion of the Bank/ Finance Company. It cannot be a right of the borrower.

So you have to go with them. The concerned officer of the copmany will also need something for his security if the CIBIL Reports turn to be right.

Since you are co-applicant of the loan and a “defaulter” as per the CIBIL Report, the bank is fully justified in not releasing the loan to a Defaulter Co-Applicant. You have two options as suggested by your bank. You have the option of taking up the matter with the banks who have shown you as a defaulter with copy to CIBIL and till the matter is sorted out you have to wait. The other option is filing FIR. What is the problem if you are sure that the entries of default shown in the CIBIL report do not pertain to you

Bank/NBFC............... are members and send the reports to CIBIL. CIBIL may not mention the name of member in their credit report of the member (CIBIL report).

Before submitting the name of customer to be updated in the list of defaulters maintained with credit bureau the bank has to supply reminders of the payment and a notice to the customer.

Did you receive any notice?

As per RBI guidelines, customer can obtain copy of their credit report from bank by paying a fee, amount of which is decided by the bank, however it can not exceed Rs.50/. If you apply direct to CIBIL cost shall be higher.

The bank/NBFC as per RBI guidelines is directed to supply certified copy of loan application/forms etc collected from customer, free of cost. In case the loan approval is rejected the bank has to inform the customer in writing. You should obtain these. If you want to obtain CIBIL report from CIBIL you should demand and obtain the one in which name of bank/CC , company which has declared you defaulter should be clearly written.

Moreover in your case wrong status is updated by the bank/CC company as per your post. Therefore you may in place of CIBIL, submit a written representation based of loan rejection letter, to your bank/CC company to beg apology in writing and supply you copy of their communication addressed to CIBIL declaring you defaulter, and another to remove your name from list of defaulter, and CIBIL report with clean credit history, and another letter that on the basis of this CIBIL report you shall not have any adverse effect on your credit rating and eligibility for any kind of loan.

You should not let the bank/CC company escape without harsh penalty, and post your success in this forum also. This shall help many who face similar situation.

This approach was adopted in case of one member who had suffered due to RBS ( Ex. ABN AMRO). The bank apologized in writing and corrected their fault.

All, Thanks for your replies.

@Surendra: My concern with police complaint was followup. If I am not available for their questions for investigation,  I am just worried that may become another problem (I have stated above that I have to go overseas).

@Kumar: I have not received such notices. I was not aware of the RBI guideline either. Thanks, thats a real eye opener for me. Your lines are inspiring. Luckily for me, the loan lending bank is co-operative but only insisting for documentary proof.