NPA affecting Cibil/Credit score

[udayrao0203]

My Dad took a 1 lakh loan from Corporation bank and due to financial crisis in COVID he was unable to pay and got it defaulted. Bank told us that its now under NPA status. Due to this his cibil score has gone down to 650. If I pay the complete amount and clear the loan, will the NPA tag be removed and most importantly will his score improve? If yes, any estimated time to get it above 700+

p.s. I am applying for education loan this year and really need this get it sorted before I apply.

 

[AV$]

My Dad took a 1 lakh loan from Corporation bank and due to financial crisis in COVID he was unable to pay and got it defaulted. Bank told us that its now under NPA status. Due to this his cibil score has gone down to 650. If I pay the complete amount and clear the loan, will the NPA tag be removed and most importantly will his score improve? If yes, any estimated time to get it above 700+

p.s. I am applying for education loan this year and really need this get it sorted before I apply.

Not sure about corporation bank but my loan from HDFC was defaulted
My credit score went down to 666
After talking with HDFC employee and clearing the full due amount my loan was closed immediately and eNOC was given
After 1 month it started showing on credit report as closed
And after 3 months it was at 744 which is a very good score in my opinion

Remember don't "settle" the loan as it will still be marked as settled on the credit report
Negotiate on the "closure" of loan