Home - Loans & Advances - Loan FAQ - How Does accepting OTS effect on Credit History ?

How Does accepting OTS effect on Credit History ?

One Time Settlement Scheme , OTS effect on Credit History of an Individual future credit history : Just as all information about credit availed (amount availed, payments, defaults etc) is reported to Credit Information Companies (CICs), the fact that the borrower has closed a loan account after accepting an OTS is also reported to CICs.

The bank is required to explain to the borrower the consequences of accepting an OTS on his / her credit history/ credit rating in the records of the CIC.

As lenders check a potential borrower’s credit history / score, defaults in payment or accepting an OTS may affect his chances of getting credit in future.

For the latest Banking updates, follow AskBankings on Twitter, Facebook, and subscribe to our YouTube channel

Get Daily Updates On Banking, Enter your email address:

Leave a Reply

Be the First to Comment!

avatar
  Subscribe  
Notify of
x

Check Also

mclr calculation

Basic Details of Marginal Cost of Funds based Lending Rate (MCLR) By RBI

Marginal Cost of Funds based Lending Rate (MCLR) is a new lending rate introduce by ...