CIBIL Score severely impacted due to delayed EMI by primary borrower

[hedgehog2122]

Dear All,

Need your valuable suggestions on a peculiar case of one of my close friends whose CIBIL has hit badly due to late payments of home loan EMI where he is a co-applicant.

This goes back to 2010 wherein he married a girl and jointly took a home loan where his ex wife was the main applicant and he was co-applicant. Later he finds out about her extramarital affair and filed for divorce, which concluded around 2015-16. He never made any EMI payment as his ex-wife was paying it even till date. In divorce order by family court it specifies that he has no further interest in the property and it belongs to his ex.

Around 2022-23, he noticed one home loan of axis bank is mapped to his CIBIL, when enquired at the bank he found out it is the same HL in which he was the co-applicant. He did enquire bank about his (co-applicant) name removal but they mentioned about novation process where consent of main applicant along with bank is necessary. Considering his personal relationship background with his ex it is practically impossible for him to initiate discussions with her to get his name removed from loan, he has neither spoken nor met her in last 11-12 years. Balance tenure on HL is still around 7 years which is really scary.

Kindly advise if there is any process where his name can be removed unilaterally. In his 15 yrs CIBIL history there is not an even a single payment which is delayed, but this incident has left him disheartening, especially when he knows he is not at a fault.

Thanks

 

[SSV]

Dear All,

Need your valuable suggestions on a peculiar case of one of my close friends whose CIBIL has hit badly due to late payments of home loan EMI where he is a co-applicant.

This goes back to 2010 wherein he married a girl and jointly took a home loan where his ex wife was the main applicant and he was co-applicant. Later he finds out about her extramarital affair and filed for divorce, which concluded around 2015-16. He never made any EMI payment as his ex-wife was paying it even till date. In divorce order by family court it specifies that he has no further interest in the property and it belongs to his ex.

Around 2022-23, he noticed one home loan of axis bank is mapped to his CIBIL, when enquired at the bank he found out it is the same HL in which he was the co-applicant. He did enquire bank about his (co-applicant) name removal but they mentioned about novation process where consent of main applicant along with bank is necessary. Considering his personal relationship background with his ex it is practically impossible for him to initiate discussions with her to get his name removed from loan, he has neither spoken nor met her in last 11-12 years. Balance tenure on HL is still around 7 years which is really scary.

Kindly advise if there is any process where his name can be removed unilaterally. In his 15 yrs CIBIL history there is not an even a single payment which is delayed, but this incident has left him disheartening, especially when he knows he is not at a fault.

Thanks

I am no expert in these kinds of matters..
But logically speaking, there are two options here..

1) Going to even higher court / authority and getting the order directing the financial institution to remove the ownership of the loan..
2) going to ex-wife and initiating the novation process..

Now you can see what is more practically possible.

Lesson learnt: Try to avoid any joint loan agreements, no matter how thick the relationship is...Try to keep things as simple as possible ...

I feel very sorry for your friend...

 

[hedgehog2122]

I am no expert in these kinds of matters..
But logically speaking, there are two options here..

1) Going to even higher court / authority and getting the order directing the financial institution to remove the ownership of the loan..
2) going to ex-wife and initiating the novation process..

Now you can see what is more practically possible.

Lesson learnt: Try to avoid any joint loan agreements, no matter how thick the relationship is...Try to keep things as simple as possible ...

I feel very sorry for your friend...

Is there any temporary solution like requesting a remark on the cibil report that the loan doesn't belong him, citing divorce and no relationship with the primary borrower as on date of late payment/ default.

 

[SSV]

Is there any temporary solution like requesting a remark on the cibil report that the loan doesn't belong him, citing divorce and no relationship with the primary borrower as on date of late payment/ default.

Divorce and no relationship with his ex has nothing to do with loan co-ownership.
Had he got any court order that he was relieved from loan obligation??
If so, take that order to the bank and see what they say..

 

[Dr.Anand456Dr.Anand456 is verified member.]

Dear All,

Need your valuable suggestions on a peculiar case of one of my close friends whose CIBIL has hit badly due to late payments of home loan EMI where he is a co-applicant.

This goes back to 2010 wherein he married a girl and jointly took a home loan where his ex wife was the main applicant and he was co-applicant. Later he finds out about her extramarital affair and filed for divorce, which concluded around 2015-16. He never made any EMI payment as his ex-wife was paying it even till date. In divorce order by family court it specifies that he has no further interest in the property and it belongs to his ex.

Around 2022-23, he noticed one home loan of axis bank is mapped to his CIBIL, when enquired at the bank he found out it is the same HL in which he was the co-applicant. He did enquire bank about his (co-applicant) name removal but they mentioned about novation process where consent of main applicant along with bank is necessary. Considering his personal relationship background with his ex it is practically impossible for him to initiate discussions with her to get his name removed from loan, he has neither spoken nor met her in last 11-12 years. Balance tenure on HL is still around 7 years which is really scary.

Kindly advise if there is any process where his name can be removed unilaterally. In his 15 yrs CIBIL history there is not an even a single payment which is delayed, but this incident has left him disheartening, especially when he knows he is not at a fault.

Thanks

Firstly, I personally believe that there was no need to share such personal details in a public forum. Such matters are best kept private, as they involve sensitive information.


Secondly, SSV has already provided you with a very solid suggestion. Beyond that, your friend can take a few additional steps to minimize damage and possibly improve their credit situation:

1. Timely EMI Payments During the Case:
   Until the legal case is resolved, your friend should continue to make regular EMI payments. This is crucial because any further delays or missed payments can worsen their CIBIL score. Maintaining discipline in payments at this stage will help prevent deeper damage.
2. Court Refund If Case Is Won:
   If your friend eventually wins the case, the court will ensure that they receive a refund for the disputed amount. So continuing payments now is a strategic move to protect their credit profile until the matter is legally settled.
3. Secured Credit Card or Small Secured Loan:
   To rebuild or maintain a healthy credit profile, your friend can opt for a secured credit card or a small secured personal loan. However, this should only be done if there is a real need for credit. Otherwise, getting a low-limit secured card (₹5,000–₹10,000) and simply keeping it active with minimal usage and timely payments can gradually improve their credit score.
4. Maintain a Strong Payment History:
   It is critical that your friend’s overall payment history remains at least 99% on-time. A poor repayment track record will make it extremely difficult to get approved for any credit card or loan in the future. So every single payment counts.
5. Raise a Dispute with the Bank and CIBIL:
   As an additional step, your friend can raise a formal dispute with both the bank and CIBIL. They’ll need to clearly explain the situation, including the ongoing legal case. There’s a possibility that the bank might acknowledge the circumstances and agree to remove or adjust the late payment entries.

In conclusion, managing credit health during a dispute requires patience and proactive steps. With disciplined payments and the right approach, your friend can control the damage and potentially recover their credit profile over time.


Wishing your friend all the best for the case and their financial future.

 

[hedgehog2122]

Divorce and no relationship with his ex has nothing to do with loan co-ownership.
Had he got any court order that he was relieved from loan obligation??
If so, take that order to the bank and see what they say..

Okay, will check with him

 

[2025]

Dear All,

Need your valuable suggestions on a peculiar case of one of my close friends whose CIBIL has hit badly due to late payments of home loan EMI where he is a co-applicant.

This goes back to 2010 wherein he married a girl and jointly took a home loan where his ex wife was the main applicant and he was co-applicant. Later he finds out about her extramarital affair and filed for divorce, which concluded around 2015-16. He never made any EMI payment as his ex-wife was paying it even till date. In divorce order by family court it specifies that he has no further interest in the property and it belongs to his ex.

Around 2022-23, he noticed one home loan of axis bank is mapped to his CIBIL, when enquired at the bank he found out it is the same HL in which he was the co-applicant. He did enquire bank about his (co-applicant) name removal but they mentioned about novation process where consent of main applicant along with bank is necessary. Considering his personal relationship background with his ex it is practically impossible for him to initiate discussions with her to get his name removed from loan, he has neither spoken nor met her in last 11-12 years. Balance tenure on HL is still around 7 years which is really scary.

Kindly advise if there is any process where his name can be removed unilaterally. In his 15 yrs CIBIL history there is not an even a single payment which is delayed, but this incident has left him disheartening, especially when he knows he is not at a fault.

Thanks

The major mistake from his side was not removing his name from that home loan at the time of divorce settlement. He was not careful enough (maybe because it was not reflecting in his cibil, so he ignored). Now he is paying the price.

This thing would have been sorted in just one line in the court direction order. Now, tough roads ahead.

One more thing he may try, don't know whether it will work or not, make formal complaint to bank higher authorities that he has raised a complaint to bank regarding removal of his name long back citing the court order. But bank did not worked the way they should. Then proceed to RBI Banking ombudsman. Then court. Sequential order.

 

[SHUB11]

Boss I dount court will rule in your favour.
You are a joint holder in that loan, period. The joint application is independent of your relationship with the primary applicant. Even if you are divorced than also loan needs to be repaid. Check with the ex if this can be sorted else live with a poor CIBIL

 

[hedgehog2122]

Boss I dount court will rule in your favour.
You are a joint holder in that loan, period. The joint application is independent of your relationship with the primary applicant. Even if you are divorced than also loan needs to be repaid. Check with the ex if this can be sorted else live with a poor CIBIL

I can understand this, will ask him to speak to her ex, but changes are very slim as there is no communication since a decade.

 

[SSV]

I can understand this, will ask him to speak to her ex, but changes are very slim as there is no communication since a decade.

I guess this is the easier option..
We never know after a decade she might even had changed in a good way for him..
We never know, try this option first