Need help - Bank gave me personal loan against my cibil
7 months ago
Bank gave me personal loan against my cibil. I invested money in business and lost my money. I am college student and I can't repay the loan right now. 3 emi already bounced. What can be done?
A.Dear Client,
Once the repayment of the loan stops or bounces for consecutive 3 installments, The Bank initiates a routine course of action for recovery of loan from the borrower marking the loan as bad loan/NPA. Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own, but sometimes it's typically done through third parties like debt relief companies, which you may be hired to negotiate the settlement matter with the lender on your behalf. With this arrangement, you will make payments to the debt settlement company rather than your creditor/Bank, along with any fees. Debt settlement is an agreement between a lender Bank and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations available in the market. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your instant financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit(CIBIL) score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
Once the repayment of the loan stops or bounces for consecutive 3 installments, The Bank initiates a routine course of action for recovery of loan from the borrower marking the loan as bad loan/NPA. Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own, but sometimes it's typically done through third parties like debt relief companies, which you may be hired to negotiate the settlement matter with the lender on your behalf. With this arrangement, you will make payments to the debt settlement company rather than your creditor/Bank, along with any fees. Debt settlement is an agreement between a lender Bank and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations available in the market. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your instant financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit(CIBIL) score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
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