Impact of Past Loan Defaults on My Land Loan Eligibility – Need Expert Advice

[angajit]

I m a 55-year-old government employee with a monthly salary of ₹60,000+. My current CIBIL score is 684. I have a strong repayment history, with one active loan of ₹4,00,000, which I have been paying on time, and three closed loans that were fully repaid without any defaults.

However, I recently discovered that my son had taken three personal loans in my name without my knowledge:

• SnapMint – ₹4,900
• MobiKwik – ₹2,000
• Paytm Postpaid – ₹5,700

Unfortunately, these loans were defaulted for over 900+ days, which has negatively impacted my credit score. I am planning to repay and close these loans immediately.


I am now looking to take a loan of ₹25-30 lakh to purchase land and would like to understand how these past defaults might impact my eligibility. Specifically:

1. After repaying and closing these loans, will the DPD (Days Past Due) still reflect in my credit report?
2. Even after clearing them, will my past defaults lead to loan rejection?
3. How long will it take for my CIBIL score to improve after closing these loans?

I would appreciate insights from experts and those who have faced similar situations.

 

[amitvicky]

You are 55, and looking to take loan of 25 lakhs...
How are you planning to repay??

I know that's none of my business. But, with 60k salary and may be 5-7 years of service left... I don't see how are you going to repay.

 

[zacobite]

I m a 55-year-old government employee with a monthly salary of ₹60,000+. My current CIBIL score is 684. I have a strong repayment history, with one active loan of ₹4,00,000, which I have been paying on time, and three closed loans that were fully repaid without any defaults.

However, I recently discovered that my son had taken three personal loans in my name without my knowledge:

• SnapMint – ₹4,900
• MobiKwik – ₹2,000
• Paytm Postpaid – ₹5,700

Unfortunately, these loans were defaulted for over 900+ days, which has negatively impacted my credit score. I am planning to repay and close these loans immediately.


I am now looking to take a loan of ₹25-30 lakh to purchase land and would like to understand how these past defaults might impact my eligibility. Specifically:

1. After repaying and closing these loans, will the DPD (Days Past Due) still reflect in my credit report?
2. Even after clearing them, will my past defaults lead to loan rejection?
3. How long will it take for my CIBIL score to improve after closing these loans?

I would appreciate insights from experts and those who have faced similar situations.

yes.. will take time for score to improve..

 

[angajit]

You are 55, and looking to take loan of 25 lakhs...
How are you planning to repay??

I know that's none of my business. But, with 60k salary and may be 5-7 years of service left... I don't see how are you going to repay.

My total salary is 80k, 60k is excluding savings, also I am eligible for pension too

 

[angajit]

yes.. will take time for score to improve..

If i close them and improve the score in 1 year, will it lead to loan rejection because of the dpd that will be staying?

 

[zacobite]

If i close them and improve the score in 1 year, will it lead to loan rejection because of the dpd that will be staying?

DPD usually stays for almost 3-6 yrs on record.. So take the first step and the right one and start rebuilding... once u establish a clean record you can negotiate...