Help Needed! Massive CIBIL Drop - 102 points

[neun9]

Hello everyone,

Some information:

- 6 months old credit history.

- Took a small business loan from BoM to create credit activity. Loan had 2 components (60K loan + 1L cash credit).

- Cash credit was never released by the bank, they only opened the account. I did not care because I only needed the credit activity and not the money. (Big mistake)

- After a few months (8th July), they deducted ₹200 + GST as service charges from the CC account. I did not think of it much, I thought of them as annual charges and I transferred ₹300 to that account to make the balance positive. I did not receive any SMS or email regarding these charges ever. I only caught the charges when I happened to check the statement randomly on 11th July.



- Again last month (8th Oct), they deducted ₹200 + GST as service charges, did not receive any SMS or email regarding these charges. I received an SMS and email on 18th October saying "Dear Customer, Overdue/Default in your a/c no XXXXXX67 as on 15/10/2025 is reported to Credit Information Company. For your information. -Bank of Maharashtra".

- I went to the bank, but they are not listening. But when I asked them to close this CC account, they immediately closed it.

- When I checked my CIBIL score this month, it had dropped by 102 points (Last month, it was 762).



I was paying all the instalments on time hoping that I might cross 775 by the end of the year. I was also hoping to get SBI cashback credit card approved in December.

Is there any way I can get out of this shit? Because the bank charged service charges on ₹0 cash credit account, and they did not even inform me about the charges by SMS or email. Only informed me of reporting. And they reported wrong delay (90+ days instead of 10 days). Thanks in advance for the help!

 

[SSQ]

Cash credit is not a loan, there will be no disbursal or release of funds.
If you have money requirement draw and repay, interest will be charged for that tenure calculated in days.

Please share account details from CIBIL. Is there any quarterly charge for availing cash credit (not based on utilization)?

 

[neun9]

Cash credit is not a loan, there will be no disbursal or release of funds.
If you have money requirement draw and repay, interest will be charged for that tenure calculated in days.

I know it's not a loan. The limit that was approved in preliminary stage was 1L, it was stuck with the manager in final stages (due to internal politics of old and new manager). As the limit was never released/approved, no amount was being withdrawn. It was zero.

 

[SSQ]

Is there any quarterly charge for availing cash credit (not based on utilization)?

I know it's not a loan. The limit that was approved in preliminary stage was 1L, it was stuck with the manager in final stages (due to internal politics of old and new manager). As the limit was never released/approved, no amount was being withdrawn. It was zero.

Edited my response, please contact the bank for cash credit related charges.

 

[aishwarya]

Hello everyone,

Some information:

- 6 months old credit history.

- Took a small business loan from BoM to create credit activity. Loan had 2 components (60K loan + 1L cash credit).

- Cash credit was never released by the bank, they only opened the account. I did not care because I only needed the credit activity and not the money. (Big mistake)

- After a few months (8th July), they deducted ₹200 + GST as service charges from the CC account. I did not think of it much, I thought of them as annual charges and I transferred ₹300 to that account to make the balance positive. I did not receive any SMS or email regarding these charges ever. I only caught the charges when I happened to check the statement randomly on 11th July.

View attachment 114485

- Again last month (8th Oct), they deducted ₹200 + GST as service charges, did not receive any SMS or email regarding these charges. I received an SMS and email on 18th October saying "Dear Customer, Overdue/Default in your a/c no XXXXXX67 as on 15/10/2025 is reported to Credit Information Company. For your information. -Bank of Maharashtra".

- I went to the bank, but they are not listening. But when I asked them to close this CC account, they immediately closed it.

- When I checked my CIBIL score this month, it had dropped by 102 points (Last month, it was 762).

View attachment 114486View attachment 114487

I was paying all the instalments on time hoping that I might cross 775 by the end of the year. I was also hoping to get SBI cashback credit card approved in December.

Is there any way I can get out of this shit? Because the bank charged service charges on ₹0 cash credit account, and they did not even inform me about the charges by SMS or email. Only informed me of reporting. And they reported wrong delay (90+ days instead of 10 days). Thanks in advance for the help!

Just a suggestion: if u want to build a credit history just take a secured credit card. You'll get it seamlessly, using supermoney, kotak811, idfc first earn, idfc wow and a lot of options are there. I'd suggest you to Just close the account you have with BoM, ask them if they can rectify your CIBIL, in good faith.

 

[Tejo]

You should have initially questioned at the time of first charge rather than clear the amount.

When dealing with irresponsible psu banks, you should have known the consequences.

Write a mail to grievance redressal
- Question them, how can they charge in the name of service charge for the services that have not at all received. (Atleast, does they inform about the charges at the time of opening that ac ... ?)
- Question them, why there was no information of overdue ?

I think, there are guidelines to bank to not term overdue for non-payment of service charges or any other than credit/borrow funds.

Ask bank, 1,00,000 as compensation and correcting cibil records with immediate affect🤣

If they are not gonna care, file a complaint at rbi ombudsman, you should note that ombudsman officer is like a judge, if he agrees that you need to get any compensation and the cibil need to be corrected, then it will.

 

[neun9]

I think, there are guidelines to bank to not term overdue for non-payment of service charges or any other than credit/borrow funds.

I was unable to understand this. Can you please explain? Thanks

 

[Tejo]

I was unable to understand this. Can you please explain? Thanks

In general, Bank can not report as overdue of non-payment of service charges .... they can just hold/demand the amount -> it depends on the institution TnC.

As per RBI, Bank can not report as overdue of non-payment of service charges, if services have not received. In your case cash credit was never sanctioned.

First go to the branch and nicely request that there was no fault and you are facing issues due banks fault.

Ask politely him, can he do any help or not

Just record your conversation. Save it. (***)

Write a mail to nodal, to reverse the report from all credit bureau's and formal apology from bank end ... If no resolution.

Next, Lodge a complaint at rbi bo

1. Bank has charged service fee for not availed or not sanctioned credit
2. By nov, they have reported has overdue for oct month charges.
3. Clearly mention that there was no intimation of charges, for not sanctioned credit.
4. They were was no information about due payment.
5. Bank manager was not taking up the issue nor the nodal officer of the bank.

Ask ombudsman banking officer that branch manger has insulated and rude in public at the branch when you are asking service/justice.

Demand rbi bo correction in cibil and 25k compensation.

Next rbi bo, no resolution. Get an advocate, use audio and mails of nodal officer ... Consumer court

* You should act like your victim, you have cleared 236 negative balance as you thought it was your due of personal ac, not a cash credit ac maintainance fee .... Cause your issue can be dismissed as you have knowledge of service charge and have honoured that.

 

[neun9]

In general, Bank can not report as overdue of non-payment of service charges .... they can just hold/demand the amount -> it depends on the institution TnC.

As per RBI, Bank can not report as overdue of non-payment of service charges, if services have not received. In your case cash credit was never sanctioned.

First go to the branch and nicely request that there was no fault and you are facing issues due banks fault.

Ask politely him, can he do any help or not

Just record your conversation. Save it. (***)

Write a mail to nodal, to reverse the report from all credit bureau's and formal apology from bank end ... If no resolution.

Next, Lodge a complaint at rbi bo

1. Bank has charged service fee for not availed or not sanctioned credit
2. By nov, they have reported has overdue for oct month charges.
3. Clearly mention that there was no intimation of charges, for not sanctioned credit.
4. They were was no information about due payment.
5. Bank manager was not taking up the issue nor the nodal officer of the bank.

Ask ombudsman banking officer that branch manger has insulated and rude in public at the branch when you are asking service/justice.

Demand rbi bo correction in cibil and 25k compensation.

Next rbi bo, no resolution. Get an advocate, use audio and mails of nodal officer ... Consumer court

* You should act like your victim, you have cleared 236 negative balance as you thought it was your due of personal ac, not a cash credit ac maintainance fee .... Cause your issue can be dismissed as you have knowledge of service charge and have honoured that.

Thank you so much for explaining in detail. It was really helpful. I'll send an email to nodal officer.