Will A Loan Default Stop Me from Getting Loan in Future?

Have you ever been late with a loan EMI or credit card bill payment?

There’s plenty of people who have and it’s not usually a big problem unless the debt is for more than ₹1000 and you’re more than 60 days late in paying it. At this point, you’ll have a default lodged on your credit history by the credit provider and the default may stop you from getting a loan.

Luckily, you may still qualify for a loan if you choose the right lender.

What if there are several loan defaults?

Do you have more than one default on your credit file? Your ability to borrow depends on the type of loan default you have; how old they are and their combined value.

If you have any unpaid defaults or larger paid defaults, you may still qualify with a specialist lender.

What if there is a large default?

The size of your default has a massive influence on your eligibility for a loan. The bigger the default, the more likely your application will be declined.

Is your credit file:

• Not quite perfect? - If you have defaults for less than ₹1,000 and you’ve paid it more than six months ago, you may be able to borrow.
• A little messy? - If you have paid defaults of more than ₹1,000, a specialist lender may be able to help you. You may be able to borrow if you have good reasons for the defaults backed up with strong evidence.
• Seriously impaired? - If you have more than ₹5,000 in defaults and only some of them have been paid then it’s probably best using a private, specialist or non-conforming lender.