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2017 CIBIL Defaulter List ⎢How NOT To Get On It

2017 CIBIL Defaulter List⎢How NOT To Get On It
Jay Kaul
Written by Jay Kaul

How To NOT Get On The 2017 CIBIL Defaulter List

450x111Getting your name on the CIBIL Defaulter List of 2017 won’t augur well for you at all. It is because bad loans have landed the country’s banking system in such a soup that all concerned regulators are desperate to clamp down heavily on defaulters who are primarily responsible for perpetrating and boosting this crisis.

You may belong to any of the following three categories of defaulters as stipulated by the Reserve Bank of India:

•    A standard borrower who is actually under stress and unable to pay

•    A borrower whose projects have not met their desired schedules and is, therefore, unable to repay his debts

•    A borrower with whom all restructuring efforts have failed

What Gets My Name included in the 2017 CIBIL Defaulter List?

There are several reasons which may lead you to be in the defaulter’s list including:

•    Bad credit history like late repayments, not paying back loans, pending credit card bills and a host of other negative credit activities.

•    Error in reporting

•    Wrongful inclusion in the list due to human intervention

•    Victim of scam or identity theft

We will discuss bad credit in this article. It’s best that you avoid getting on the CIBIL Defaulter List of 2017 at any cost. We will tell you how to do that in the steps below:

How to Avoid Being on the 2017 CIBIL Defaulter List? 

Honesty Shall Count 

The first step to keeping your name off the CIBIL Defaulter List of 2017 is to clean up your books of accounts and present a truthful account of the actual state your business is in. In case you have a genuine problem, the lender will certainly consider your case. At least, the RBI has hinted at that.

Increase Your CIBIL Score

Retail borrowers need to keep in mind that they have to keep increasing their CIBIL score perpetually. The RBI rules dictate that all lending banks must take a hard look at any prospective borrower’s CIBIL score as part of the process for credit assessment. Thus, even if you are getting loans from the smaller banks or even their credit cards, if your CIBIL score drops below the 750 level, it is likely that you will face the flak.

Make Timely Repayment

For retail borrowers servicing credit already, it now becomes imperative to repay their lenders in a timely fashion and also to monitor their CIBIL scores strictly. Remember, if you manage to keep your CIBIL score above the desirable limit, you are only strengthening your position when it comes to taking home, car and personal loans.

Staying Responsible Long Term Is Key

Avoid Overleveraging

The recent debacle involving Vijay Mallya has clearly shown that when you over leverage as a borrower, you are inviting disaster. The best way to avoid this is to keep your credit behavior at its best and your CIBIL score as high as possible. This can only be done if you refrain from taking on debt, which in the long run you cannot service.

Work out your debt servicing capability first before going for a loan, take manageable debt burdens after that and service it timely so that your CIBIL score remains satisfactory.

Avoid Multiple Credit Cards and Loans

Do not apply or use multiple credit cards and loans. It gives you ‘credit hungry’ characteristic and also lowers your score. Keep your credit purchases limited to one card and take one loan at a time.

Don’t be a Willful Defaulter

It is also important to compulsorily bear in mind that the RBI has decided to come down heavily on “willful defaulters’’ who find their names on the CIBIL Defaulter List of 2017. It will bar such defaulters from launching IPOs and their association with mutual funds and brokerages too, will be blocked.

Thus it’s only wise to do whatever it takes to prevent this from happening because you could find yourself facing a massive cash crunch if you fall prey to such circumstances. Not only will your growth and expansion plans grind to a halt, but your business could face liquidation also.

About the author

Jay Kaul

Jay Kaul

Jay is a financial and credit expert and freelance contributor to CreditSmart. He's always keeping his eyes open for the latest credit card trends in India and provides a sharp insight on new entries into the market.

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