Loan Default: RBI guidelines released, a big relief for those who did not repay the loan..

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The Reserve Bank of India (RBI), the central bank of India, has given information about the risks related to retail loans. According to the CIBIL report of Credit Information Bureau (India) Limited, there has been an increase in cases of non-payment of credit bills and personal loans in December 2022. The most noteworthy thing in this is that these cases are higher than the pre-Covid figures.
If you have not yet paid any loan or credit card bill, then you are called a defaulter. Now the question is, what will you do in such a situation? Come, let us know the answer to this question.

Are the agents worried?
When many people are unable to repay the loan, they are harassed by recovery agents. Whenever you default on a loan, it directly impacts your CIBIL score. In such a situation, if you take a loan again, you will have to pay more interest for it. You also have some legal rights. With his help, you can get yourself out of this situation.

you can do these things
According to the guidelines of the Reserve Bank of India, defaulters definitely get relief. He can make small payments on the loan. With this, they can start their financial level afresh. After which they can manage their loan comfortably. Understand it this way, if you have a loan of Rs 10 lakh and you are not able to repay it, then you can get it restarted. For this, first, you will have to pay Rs 5 lakh in a lump sum, and then you can repay the remaining loan in small installments.
Credit health will be affected

After a loan default, your CIBIL score becomes very bad. Because of this, you have to pay more interest on your loan. Many times banks do not even give you a loan because of a bad CIBIL score.

Let us tell you that if your CIBIL score is 750 then it will be considered a good score. Whereas if it is less than 600 then it will be considered bad. Many banks give loans only on the basis of CIBIL score. If your CIBIL score is good then you will get the loan easily and the bank will also give you an interest offer.

Do this work in case of loan default
Assess your situation correctly.
You should first consult the institution from which you have taken the loan.
Calculate your financial situation.
To avoid damaging your credit rating, repay your loan first.

Know your legal rights
There are legal rights for debtors in India. Recently, the Reserve Bank of India has called upon banks and financial firms to exclude willful defaulters from the settlement. People who participate can reapply for the credit after 12 months.

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