Impact of foreclosure on cibil score

Cibil score is one of the most important score that one can obtain for oneself. Cibil score is one of the most important decision criteria in deciding a fate of loan application.

It has been seen that borrowers are eager at two stages of loan application, first is when they are applying for a loan and second for foreclosing a loan if enough funds are available with them. But, this foreclosing has negative impact on cibil score of the borrower. Your relationship with bank may get closed but cibil will maintain all your repayment history including foreclosure. The article on LoanKuber.com made me inform about impact of foreclosure on cibil score’ of an individual.

Repayment of loan is one of the most troubling activity for a loan borrower. Initially, borrowers are excited to take a loan from a bank as it increases their bank balance enormously. Good score in India is one of the most crucial factors for a bank to disburse loan to a borrower. But, with time some borrowers are not able to regularly repay their loans. Given an opportunity, most of the borrowers want to repay their loans at one go or they want to foreclose their loan. Borrowers are not able ascertain impact of this behavior on their score.

Most of the borrowers think that by foreclosing their loans to banks, they would get good faq3impact on their cibil score but, contrary to popular belief, foreclosing a loan impacts negatively on your cibil score. When a bank sanctions you a loan amount then, a bank takes into account its asset liabilities management practices and prepare a amortization schedule that will generate interest for a optimal period of time. Due to foreclosure of loans, banks need to let go of large amount from their end and their calculations for your loan gets into toss. To compensate that, banks would charge a foreclosure charge from you for prepayment.

This article on http://www.loankuber.com/content/cibil-score/impact-of-foreclosure-on-cibil/ proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

It is more or less a nightmare for a person to have a bad credit report.