RK is a respected credit advisory service operating nationwide in India, committed to aiding clients in attaining favorable credit standings and financial autonomy.
A CIBIL status of “written off” indicates that the borrower has failed to make payments against their outstanding loan for over three months. When an individual cannot repay their loan, the lender can “write off” the borrowed funds. This status on a CIBIL report can adversely affect an individual’s eligibility for loans in the future. Lenders often check a person’s credit history when lending. When they come across a CIBIL written off, it indicates that the borrower has been unable to make repayments against their loans and makes them a defaulter candidate. Additionally, it can severely impact the borrower’s credit score and cause it to drop below the desired level.
What do you mean by a Defaulters list?
Remember these vital facts: The credit bureaus maintain a list of loan defaulters, Credit bureaus also compile borrowers’ credit details and make them available to lenders to assess their creditworthiness The Reserve Bank of India (RBI) maintains a list of wilful defaulters with a collective outstanding credit amount of more than ₹25 lakhs.
The following practices fall under the wilful default category:
Deliberate non-payment of the dues
Siphoning off of the funds
Misutilisation of proceeds
Misrepresentation of records
Removal of securities without the bank’s knowledge
Fraudulent transactions
Problem 1: Bad Credit History
If an individual has a bad credit history, their creditworthiness is impacted. Here’s the solution:
Keep track of due dates for EMI and Credit Card Payments.
Monitor your credit score by downloading your credit history report from CIBIL’s website.
Ensure timely payments of EMIs and Credit Card bills.
Communicate with the lending authority to rectify any inaccuracies in your credit report.
Avoid unreasonable debt to meet personal requirements.
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