Banks rate loan borrowers and the ratings are tracked in CIBIL irrespective of whether you promptly replay or default. The question is when you have a closure letter from the Bank, how can one be a defaulter. All Banks mislead consumers here. They call as "Settlement Letter". A consumer's interpretation of settlement is "CLosure" but per the bank terminology it is not the case. This is defaulting.
CIBIL rating should be in favour of the consumer if you have closure letter or settlement letter from Banks. However this is not the case.
I have closure letters from all banks but now denied any further borrowing due to CIBIL guidelines. Who wil look into this? Ministry of Finance. This needs to be tightened as CIBIL protects only Banks and not consumers.
-Nireesh
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