Babitha 29 January 2016

Educational loan default

Read more: How to handle my educational loan payment without effecting the CIBIL score? - I Taken educational loan on 2007-2010. The total loan amount was 275000. Due to some financial problem i was not able to repay the loan. Now the total amount reached 588904, and the account is NPA status and now bank has offered me one time settlement option for paying back the loan. I`m concerned about effect of OTS on my Cibil score, so i asked my bank manager to arrange the EMI option. But due to NPA account he told me to pay the Due amount of 313404 and pay the EMI monthly. Also i have very poor cibil score (I think below 600) because My personal loan application has been rejected due to my cibil score Please suggest how I can pay loan and protect my CIBIL.

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2 Replies

Advocate Rohit (Advocate) 30 January 2016

If you want to protect your cibil score then you need to pay the principal amount plus interests to avoid any downfall of your cibil rating. If you go for OTS then you need to improve your cibil score by way of using credit card and paying on or before due date. This will again improve your cibil score over a period of time.

Regards

Adv. Rohit M. Dalmia

9324538481

adv.raghavan (Advocate,9444674980) 02 February 2016

In some cases banks hesitate to remove names from CIBIL even after getting payments (OTS). So u have to be careful with OTS, kindly ensure the banks keeps up its committment Then go for fresh loans.