Wednesday 28 September 2016

Get Rid of Zero Balance Loan Accounts from CIR

Zero Balance loan accounts appearing in your credit report can also send wrong signals to the lending banker who can conclude the zero balance loan accounts differently.  Bankers and Lending institutions get the full and final loan amount deposited from the borrowers but forget to take the following actions:
  • Due to the shortage of time, the bankers just apply up to date interest and credit the loan amount deposited to make the balance outstanding to ZERO without bothering its impact on the Credit Report of the borrower. Zero Balance accounts can also damage your Credit Reputation. See How....
  • In the case of Term Loan or Demand Loan accounts, the bankers may not consider the sanctioned loan amounts as Term loans and Demand Loans can not be disbursed again. But Cash Credit and Overdraft Limit accounts with Zero Balance can make the lending banker think that the borrower can withdraw the sanctioned level of Cash Credit or Overdraft limits which can adversely affect the financial position of the borrower.
  • In view of the above, every borrower must insist for proper closure of the loan account and obtain the "Statement of Account" with Account Status as "Closed".
  • Return the unused blank signed cheque leaves to the borrower which can be misused.
  • Inform the CIBIL about the closure of the loan accounts. Some banks and lending bankers CIBIL data and Loan Data is not synchronized and CIBIL data are got punched from outsourcing agencies and they keep the zero balance loan accounts in "Open Status".
  • Inform the CERSAI, Central Registry of Securitisation Asset Reconstruction and Security Interest about the lifting lien on immovable property in their books. Borrowers must insist for Certificate from the Bank about deregistration of banker's lien on the property. In case you have not taken such certificate then visit Samadhan Kender, NH-64 Near Bikaner Mishtan Bhandar, Patiala Road, Rajpura for getting the "Clear Title" report online from CERSAI.
What should be done to Get Rid of existing Zero Balance Loan Accounts from CIR:
  • Book an appointment with our CIBIL Consultants along with your latest Credit Report and they will take up with the Credit Rating Agencies to know the names of the lending bankers along with loan account numbers. It is quite possible that some of the zero balance accounts might be "Stranger's Loan Account" while other zero balance loan account may belong to you. 
  • Stranger's Loan accounts will be dealt with by experts as already explained in "How to Get Strangers Removed from Credit Report.
  • As regards you own "Zero Balance Loan Accounts" our experts will take up individually with the lending bankers for and on behalf of borrowers for the closure of such loan accounts so that loan account status gets changed from "Active or Open Status" to "Closed Status". The distant borrowers who can not physically visit to meet our CIBIL Consultants, they can remit additional payment for removal of such loan accounts as already explained in our earlier article on Analysis of Credit Reports after booking of a prior online appointment.
The fees for the removal and/or closure of zero balance accounts ( excluding written off and settled loan accounts) is negotiable according to the work involved. Normally it is Rs.1000 per account for self-owned zero balance accounts.

In the next and concluding article we shall be telling you as to "How to Get Rid of Settled/Written Off Loan Accounts" from your Credit Report.

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