If you are not a will full defaulter of Bank Loans and you have genuine reasons for not repaying the bank loans in due course of business then major banks have humanitarian credit policies to go in for OTS or Settlement. All the major banks in India have their own pre-defined policies for settlement of Overdue, Past-Due, Substandard, Doubtful or Loss Assets.
Settlement without CIBIL Clearance:
In such cases, the banks waive some charges and interest from the date the loan account was classified as Non-Performing Asset. But such settlements come with a rider attached to it. The concerned Bank will report the account Status as “Settled” to CIBIL and other Credit Rating Agencies like Equifax, Experian, and HighRank and it will get reflected in the future CIBIL Reports resulting into the rejection of your Loan application. In such case, you will have to again approach the concerned bank for CIBIL clearance and it is a very cumbersome procedure. Anyhow if you have any “Settled” or “Written Off” accounts in your CIBIL report, you can consult the CIBIL Consultants personally or online.
Settlement with CIBIL Clearance:
While settling the Loan accounts with Banks, the borrowers should prefer the Settlement with CIBIL Clearance if there is only meager or marginal difference in the amount Offer of Settlement. However, in case the borrower can not afford the Settlement Amount at once, then he can go in for a lesser amount of settlement without CIBIL clearance. The borrower is at liberty to contact the Bank for additional payment to seek the CIBIL clearance. The only difference is that till the CIBIL Clearance, No financial institution will grant a fresh loan to such borrowers. It takes months to improve the Credit Score even after CIBIL clearance.
Note: CIBIL Consultants are always available to handle your loan account to be settled with or without CIBIL clearance. No need to visit the Bank and expert CIBIL Consultants will help you to clear your dues through dignified offers.