Budget Homes

Recently, I applied for personal loan in HDFC bank. After processing, the telemarketing executive informed me that, I am listed in CIBIL. She asked me that have I defaulted any previous loan?. I was confused I did not have any previous loan, it is my first loan in my life, which I applied to HDFC personal loan. She enquired further and replied to me, I defaulted payment to HSBC bank.

Two years back, I got a credit card from HSBC bank. The marketing executive convinced me as it is life time free card. I did not need to pay any annual or processing fee. Later I received bill statement for annual and processing fee. I felt I was cheated. So I broke the card and return it. I did not pay the processing fee for that credit card.

I am listed in CIBIL defaulters list, because I did not pay the credit card bill. So my personal loan was denied because of my credit card default payment.

I am little confused as how do the credit card defaulting considered for bank loans. If I have defaulted any bank loans, I could be denied from getting bank loans. If I have defaulted credit card payments, I could be denied from getting another credit card.

In reality, I can get another credit card, even I have defaulted previous credit card(s) payments. Of course, I have another credit card from some other banks even after defaulting HSBC credit card.

Denying bank loans based on credit card payment defaults is meaningless. There is no logic behind it. I can get new credit cards even I defaulted last credit card payment or defaulted last bank loan.

I can not get a bank loan though I did not have previous loan or not defaulted previous loans. But I am denied for defaulting credit card payment.

Credit card payment defaulting and Bank loan EMI defaulting are not same. Both have different reasons and different context.

My voice is, while issuing bank loan, ONLY the previous loan status of a creditor has to be checked. Bank loans should not be denied due to listed in CIBIL for credit card defaulting.