CIBIL
preet
(Querist) 13 June 2011
This query is : Resolved
What is the relation between CIBIl and Sarfaci Act?
prabhakar singh
(Expert) 13 June 2011
CIBIL I HAVE TOLD YOU ALREADY.
THE TWO ARE NOT INTER RELATED.WHILE CIBIL IS A BODY INCORPORATED BY EQUITY PARTICIPATION OF SEVERAL BANKS WHICH IN FORMS ABOUT CREDIBILITY OF A PROSPECTIVE DEBTOR TO ITS BANK.THE SARFACI ACT CONFERS RIGHT ON THE BANK TO MOVE AGAINST THE MORTGAGED PROPERTY OF ITS DEBTOR TO REALIZE ITS DEBT AND IF ANY THING LEFT STILL THEN TO REALIZE THE SAME BY SUIT/OR APPLICATION.
preet
(Querist) 13 June 2011
Sir i want to exactly know that i any borrower receive a notice under SARFACI Act then what is the rule that he comes under CIBIL status?
Ashok Yadav
(Expert) 13 June 2011
If you have received a notice under SARFACI act it means you are defaulter of bank and have not paid loan amount to the bank. The bank will sent your name to the CIBIL and you will be barred from getting any loan from any bank in future.
preet
(Querist) 13 June 2011
Then how can defaulter free from CIBIL status?
RAJU O.F.,
(Expert) 14 June 2011
There is no direct relation between CIBIL and SARFAESI Act. CIBIL is a private outside agency furnishing the banks the particulars of defaulter companies/its directors and defaulter individuals of loans from banks and financial institutions. It is the descretion of the banker to give loan or not to a customer. Many bankers don't care CIBIL list. When thousands of loans are granted by banks to fictitious companies and fake names where is CIBIL. It is always better to avoid the status as defaulter of loans.
M V Gupta
(Expert) 14 June 2011
Dear Preet, when a loan becomes bad on account of cntinued default in repayment first the loan will be classified as NPA as per the RBI norms and then the bank will invoke its powers under the SARFAESAI Act to recover its loan. When once the loan is treated as NPA and action under the Act is taken the information is passed on to the CIBIL under the authrority taken by the Bank under the loan Agreement executed with the borrower. Hope the various clarifications provided by the experts clear your doubts. Still if you have certain doubts you can always seek clarifications from your banker or CIBIL directly.
preet
(Querist) 14 June 2011
Thanks all of u experts...
