Loan defaulters are typically people who are unable to repay their loans before the due date. Some people purposefully avoid making payments, while others are financially unable to do so. Your credit score is impacted in either case. Until they have been proven worthy for months and have improved their credit score, defaulters are not eligible for new loans.
Here is everything you need too know about defaulters and also a shout list of some loan defaulters in Ghana.
Read on to find out more exiting facts.
Who is a Defaulter?
A defaulter is any borrower who has not been able to pay back his or her loan on the stipulated date as agreed upon.
Fortunately, after one missed payment, lenders and loan servicers typically give the defaulters a grace period before taking action against them. Delinquency is the interval between failing to make a loan payment and the loan going into default. The delinquency period provides the debtor time to contact their loan servicer or make up late payments in order to prevent default.
What is Loan Defaulting?
When payments are missed for a specific amount of time, a debt defaults. A debt collection company is tasked with contacting the borrower and collecting the overdue money when a loan defaults. The loss of personal property may result from defaulting, which may significantly lower your credit score and affect your ability to obtain future credit.
It’s crucial to get in touch with your lender or loan servicer to discuss renegotiating your loan terms if you find yourself unable to make payments on time.
List of Student Loan Defaulters
In order to check the name of student loan defaulter you can click on the link provided.
Click this link to check your name.
How do banks trace defaulters?
If a defaulter did not notify the bank of his new address, the lender had no way of finding him up until this point. However, a borrower can be identified using information like their date of birth and PAN number, among other things, in the central database that Cibil maintains for creating each person’s credit history.
How do banks get their loans back?
Each lender will have a different procedure they follow, but generally speaking it is seeking to alter certain terms to make it easier for the borrower to pay back the loan, such lengthening the payback period. In the event that this is unsuccessful, loan collection agents or, in the case of secured loans, the seizure of assets, may be used.
Where can I find out whether I have a default?
It should be noted on your credit report if you have ever received a default in the previous six years. Any defaults older than this will have disappeared from your report and won’t affect your credit score or ability to obtain credit in the future.
How long does it take for a default to be recorded?
No matter how little you owe in debt—a few pounds or a few thousand—a default is still possible. It often occurs after you’ve been late on payments for three to six months, but the length of time may vary based on the terms of the lender.
What are the Consequences a Loan Defaulter Faces?
Loan defaulters faces certain consequences when they default in the payment of their loan. This may lead to refusal of loans in the future.
- There will be drastic reduction in your credit score
- Refusal from future loans
- Lead to property seizure
Read Also: Student Loan Trust Funds in Ghana