Loan Default

India's debt crisis worsens, with 60% of borrowers struggling to pay, facing harassment, and trapped in high-interest cycles. Legal support and financial literacy are key to escaping this debt trap.

Personal loan default: Check these key details to avoid financial crisis

Defaulting on a personal loan can have adverse consequences, from a damaged credit score to potential legal action. Learn how to manage repayments effectively and avoid any financial pitfalls.

Plan smarter, pay better: How an EMI calculator prevents loan defaults

An EMI calculator is more than just a tool—it's your guide to informed borrowing and financial stability.

Small-loan defaults may throw risk into India’s broader economy

Personal-loan growth is moderating as the central bank last year clamped down on risky lending practices following a post-pandemic surge in credit

Now, lenders to inform borrowers while reporting their loan defaults to credit bureaus

By demanding the appointment of nodal officers at every credit institution, assigning a financial penalty for delay in redress of customer grievances, and regular updates to the customers on access of their credit information reports, one can expect the industry to be more customer-friendly.

Jaiprakash Associates defaults on Rs 4,044-crore loans

In a regulatory filing on Friday, Jaiprakash Associates Ltd (JAL) informed that the company on June 30th defaulted on repayments of a principal amount of Rs 1,660 crore and interest of Rs 2,384 crore.

Looking out for lower interest rates on home loans? A good credit score helps

If you credit score is over 750-800, most banks and housing finance companies will offer their best – that is, lowest – interest rates to you.

The right way to get the first credit card and build a credit history

You can apply for a credit card from a bank you have your salary account with or opt for a secured credit card. Top tips: purchase consumer electronics on monthly instalments and, most importantly, repay before the due date to build a good credit history.

Jaiprakash Associates defaults on $508 mn loan repayment due on March 31

The flagship company of the infrastructure-focused Jaypee Group has borrowings of 293.96 billion rupees, which are due for repayment by 2037, it said.

Now, claim compensation for delay in rectifying errors in credit reports

RBI has announced measures to let borrowers seek compensation for delay in updation or rectification of credit reports, improve transparency in credit information companies’ disclosures

Lenders fear delay in recovery as SC offers loan defaulters a legal window

Borrowers have the right to be heard before banks classify their accounts as fraud, the Supreme Court ruled on March 27.

Fallen into a credit card debt trap? Here are strategies to pay off your debt

Several millennials are falling into credit card debt because of an expensive lifestyle. But there are some strategies to pay off credit card debt

Many youngsters have an expensive lifestyle and are in debt. It is a slippery slope: Ritesh Srivastava, CEO of FREED

Credit counselors can come to the rescue of those who are burdened with debt – as long as they have a source of income and the intent to repay.

Bank of Baroda takes part-possession of Nirmal Lifestyle's mall in Mumbai

The bank’s move follows the failure to repay a loan of Rs 161 crore. BoB took possession of 3.4 lakh sq ft area, under the Sarfaesi Act, on January 24, 2023. A demand notice was first issued on December 6, 2019

Bankruptcy Board chief asks banks to initiate proceedings soon after NPA classification

Creditors, or banks, need to submit insolvency applications soon after a default occurs, says Insolvency and Bankruptcy Board of India chairperson Ravi Mital. Delays on this front lead to erosion in the value of assets, he says

Got your first credit card? Now use it to build your credit score

Ensure timely payments of your monthly dues. This has a significant impact on your credit score, affecting your ability to obtain loans in the future. For those who have just got their first credit card, at the start of their earning careers, it can be a good tool to build a good credit score. But if you misuse it, there are repercussions

Credit cards: Keep in mind these factors before opting for EMIs

EMIs are one of the most attractive features of a credit card. But beware: always ensure that you spend within limits, so that you are able to pay your bills on time and avoid the hefty finance charges and penalties that can lead to a debt spiral.

Errors in your credit information report? File a complaint with RBI’s integrated ombudsman

The banking regulator has decided to bring credit information companies into its integrated ombudsman mechanism net

Want a loan or credit card? File your income tax return first

Filing income tax return may not be mandatory if your income is below the basic exemption limit. But several benefits and the right to claim tax refunds are open to only those who file their income tax returns

TransUnion CIBIL study: More than 160 million Indian consumers are credit underserved

Credit cards and instalment-based credit schemes such as Buy-now, Pay-later are the most commonly used credit products by the underserved consumers

Credit cards are not evil; just understand the maths to use them smartly

Don’t get into hacks like revolving credit card usage, and maintaining multiple cards, to get longer interest-free periods that many influencers promote these days.

Banks trim lending to students, fearing high defaults

Students are struggling to get jobs after completing their courses on account of factors such as the impact of the pandemic and the ongoing Russia-Ukraine war and this is affecting their ability to repay loans.

Invoking personal guarantees of promoters is easier said than done

Despite a favourable Supreme Court ruling, bankers may find it difficult to actually monetise personal assets of business promoters

Mahindra’s Ssangyong defaults on loan repayment, what next?

Mahindra’s intent to sell its 75% equity stake in the company or at least lower it to 50% hinges on finding a new investor​, which looks difficult under present circumstances

Editor's Take | Govt may amend Section 29A of IBC

The changes could include relaxation in the norms of "connected person" criteria. The government could also look into demands from promoters of defaulting companies to allow them to bid for assets, but this may come with riders.