Can pay my full Personal Loan dues ? Should I settle my loan ?

POSTED BY deepaksakthi2013 ON October 24, 2013 8:59 pm ONE COMMENT

Hi Manish 

I had took a loan with a bank for about 5 yrs back and paid half of the amount, after that i lost my sales job so i was unable to pay the remaining dues. Now almost 3 yrs over i never had any phone call from a bank, but very recently a guy call from a collection agency and he said if you wish to pay the loan dues, we will waive off 45% of your loan amount. I said ok with him asking him give some time about 6 month period.

Here my question is i have intention to pay it, but i cant make full settlement. since my financial condition never allows me to do so. How this will reflect in my cibil report, even if i pay the remaining dues after waive off. Or please suggest how to with this.

Thanks

Deepak

One reply on this article “Can pay my full Personal Loan dues ? Should I settle my loan ?”

  1. Credexpert says:

    Dear Deepak,

    Given your current financial conditions, if you are not in a position to repay the complete outstanding amount and opt for waiver then, this would be reflected as a “Settled” on your credit report. Settlement indicates your inability to repay and can hinder any of your future loan applications.

    If you repay the balance outstanding in future after the settlement, then our suggestion would be that you confirm with the concerned lending institution if they would remove the settled remark after accepting the balance outstanding amount and update your credit report accordingly. Also, the late payments against this account will show on your credit report irrespective of the payment.

    Our suggestion would be that you arrange for an interest free borrowings from friends/family and repay the complete outstanding amount. This will ensure that your credit report is not impacted negatively and you maintain a healthy credit life.

    The interest free loan you can then repay in a more convenient manner.

    Regards.
    Credexpert
    http://www.credexpert.in

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