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Rehma Kredi
RK is a respected credit advisory service operating nationwide in India, committed to aiding clients in attaining favorable credit standings and financial autonomy.
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A wilful default
A wilful default, on the other hand, is a deliberate non-payment of a loan despite having the capacity to repay. Wilful defaults are more serious and can result in legal action.
CIBIL defaulter list is often misunderstood as a separate list maintained by banks or credit bodies. However, there is no such specific list. Instead, credit companies collect and maintain comprehensive data on borrower’s repayment performance across various types of credit. This data includes timely payments and defaulted payments, which impact the borrower’s credit score.
While credit bureaus like CIBIL do not maintain a list of loan defaulters, the Reserve Bank of India (RBI) does maintain a list of “wilful defaulters.” These are individuals who owe Rs. 25 lakhs or more to financial institutions such as banks or non-banking financial companies (NBFCs) within the country. The list of wilful defaulters is publicly available to ensure that financial institutions exercise due diligence before granting loans to such individuals in the future.
Some of the key provisions include the following:
- A wilful default would be considered to have been occurred when a borrower took the money, has the means to repay but has still defaulted.
- In another instance, in case the borrower has siphoned off the funds for purposes other than the one it was borrowed for, it will be known as a wilful default.
- Besides, if the borrower has disposed off the asset that was given for the purpose of securing a loan, then also it will be known as a wilful default.
- Any wilful defaulter with an outstanding balance of Rs 25 lakh or more would attract the penal provisions.