Came to know about a SC credit card settlement while applying SBI home loan

POSTED BY Prasad ON October 25, 2012 5:05 pm COMMENTS (9)


I have recently applied for SBI home loan,I was surprised to hear that there was SC credit card settlement in 2007.

Loan processing officer asked me to provide the NOC for SC Credit card settlement during 2007.  During 2006 timeframe I had stopped using this CC and asked the customer care to close the account. Looks like they did not close the account, approached my contact number after 5 to 6 months later for the payment. At that time I was in abroad and my brother has paid the outstanding amount and closed the credit card. SCB cust care confirmed that outstanding amount is zero.

As it was not ‘settled’ case, they have not sent the NOC for that. But now in Cibil report it has been mentioned as written-off status as “settled”.

I had applied for Cibil report and found that score 803, but with the negative remark as “settled”.  As loan processing requires NOC from SCB, I have been requesting since 3 weeks. Even approached nodal officer, but somehow they are saying it is in progress and not provided the NOC till date.

My queries are as below:

1> Struggling to get NOC from SCB. How can I get it ASAP? Please suggest.

2> If they are delaying further, Shall I take legal action against SCB for NOC and also on the settled remark?

3> What are the alternative ways to get the loans, in case if SBI home loan is rejected.

4> Any other suggestions for the current situation is much appreciated >>


Kindly advice!!

Looking forward to your response !!

Thanks and Regards,








9 replies on this article “Came to know about a SC credit card settlement while applying SBI home loan”

  1. Dear Prasad, please file a dispute relsolution with CIBIL for the deletion of old entry.



  2. Prasad says:

    Dear Manish,
    I am still waiting for NOC from SCB for the credit card ‘settlment’ status in CIBIL report.
    Even after multiple follow-ups and speaking to nodal officer executives, the status is same.
    Getting the fixed answer like ‘We are following it up.., downloading the 5 yearls transactions is taking time, it is in progress and concerned department shall update accordingly’.

    However they confirmed that according to their database, the account was closed in Mar 2007 as written-off settlement.
    No due amount to be paid from my end. But still there is delay in providing NOC.
    Home loan processing officer is checking for NOC almost everyday.
    Further delay may impact on my loan application.

    Can I approach any specific consumer forum or agency to expedite the process in getting NOC at the earliest?
    Please suggest !!


  3. Credexpert says:

    Dear Muralidhara,

    If you have been regular in making payments on the 4 credit cards, then you should keep them active. Whilst it is impossible to predict how a lender will look at your application, good payment record and no delinquencies should always help.

    Apply to SBI as you have indicated about their processing fees and interest rates being low and again that is the best way of finding out how your application will be viewed.


  4. Credexpert says:

    Dear Muralidhara,

    I would not recommend you to close the credit card. Just ensure you do not ever delay any payments – on this card and any other card / loan you may have.

    As I mentioned earlier, 614 is not a “bad” score and you should check some other housing loan providers who may have the appetite to consider your application. Has Kotak confirmed that they will rectify your data and update the credit bureau?

    Unfortunately, it is impossible to predict whether you will get a loan in December – the good news is that you may be successful in finding a lender now itself who may give you the loan.


    1. Muralidhara BR says:


      Thank you for the response.

      I requested Kotak card not to close but to reactivate the card. They had made some mistakes in my address. I told them to rectify that.

      Once this card gets active I will have 4 credit cards. Do you suggest I should keep all these active until I get loan and not to close any of them. Except Kotak I have no problem with any other cards. Infact for some cards I have overpaid (due to oversight).

      I want to take loan from SBI as processing fee, interest rate is less.

      Kindly advise if there is anything that I need to do so that I do not face any problem in getting loan.

  5. Credexpert says:

    Dear Muralidhara,

    Your score is relatively low, primarily because of the “non payment” of the outstanding on your Kotak credit card – even though you have now paid it off completely. Whilst this will certainly help and improve your score in the medium and long term, do not expect any quick changes in the near term.

    Have you applied for a loan and got a rejected? Whilst 614 is low, its not a “disaster ” and a home loan lender may actually consider you – apply and explain your Kotak episode.

    As an aside, if the non payment was due to the bank charging you by mistake, maybe you should take it up with the bank to rectify that – having said which, since you have paid up your options may be limited now.


    1. Muralidhara BR says:


      Thank you for your response. I have not yet applied for home loan as I did not want it get rejected. I showed it to SBI person and explained the situation. They suggested to close the account and then get another report in December and after seeing improvement in scoring, apply for loan.

      Kotak will be sending their updated report to Cibil in November.

      Can you please let me know whether I will be able to get loan in December.

  6. Muralidhara BR says:

    Dear Manish,

    I am sure I will get a solution get out of the situation that I am presently in.

    I live in Bangalore and recently I found a flat wanted to buy it. I have booked the flat. While applying for home loan I came to know about Cibil. 2 years back I had a Kotak credit card and I never missed the due date. Only once due to some problem from bank’s end they charged Rs. 2,500/- interest since it was not my mistake, I did not pay and they kept on charging interest on that. Now it has grown to 11,000/-.

    After learning about Cibil I wanted to know my score before applying for home loan and I got report and the score is 614. Except the above issue I do no have any problem with any loan or credit card. I had 2 personal loans and they have been paid out. At present I have 3 active credit cards.

    Because of Kotak card issue I have got low score. After this I have paid the complete amount (11000) and asked them to close the account. They agreed for that and asked me to check for cibil report in December.

    Can you please let me know a solution for this solution. I need home loan before January.

    Thank you for your help

  7. Credexpert says:

    Dear Prasad,

    While 803 is a good CIBIL score, the settled remark in your SCB account seems to be the reason for the delay in your Home loan approval. As mentioned, if the credit card outstanding was paid completely by you / your brother then it is advisable that you approach SCB not only for the NOC which will be eventually forwarded to SBI but also correct their data and inform CIBIL and get the “settled status” cleared from your report. As far as the option to take legal action against SCB is concerned – Yes it is always open, but cleaning the settled remark from your credit report should be your priority.

    So, you should “push” SCB to give the NOC

    You could also try another housing finance company like HDFC or ICICI Bank, although they could also treat your application similar to SBI. My advice would be, continue to get SCB to correct your data.


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