Loan Default on Credit Report: How to Correct or Resolve It

A loan default or overdue repayment entry indicates that a scheduled repayment was not made as required or that the loan account has been reported with a repayment delay. Credit information companies receive repayment information from lenders and use it to maintain credit reports. A default may influence how lenders assess your credit history, with the impact depending on factors such as the repayment history, duration of the delay, current account status, and other information in the report. Your credit report may include details such as the loan account, repayment history, outstanding or overdue amounts, account status, and credit enquiries. Before requesting removal or correction of a default, first verify whether the reported information is accurate. If the entry is incorrect, you can follow the applicable correction process. If it is genuine, resolving the outstanding repayment does not necessarily erase the historical information immediately.

How can you correct an incorrect loan default?

Start by obtaining your current credit report and comparing the disputed entry with your loan statement and payment records. If the information does not match, raise a dispute with the relevant lender and credit information company.

Steps to dispute an incorrect default

1. Obtain your credit report: Download your latest report and identify the loan account showing the default.
2. Check the loan details: Compare the reported outstanding amount, payment history, account status, and other entries with your loan statement.
3. Collect supporting documents: Keep payment receipts, bank statements, transaction references, loan statements, and relevant correspondence.
4. Contact the lender: Raise a formal request asking for the incorrect information to be reviewed and corrected.
5. Raise a dispute with the credit information company: If required, submit the dispute with supporting documents through the concerned credit information company's official process.
6. Track the request: Keep the complaint or dispute reference number and monitor the response.
7. Check the updated report: Obtain the report again after the correction has been processed and verify the entry.

You can use authorised Bajaj Finance digital platforms to review your loan account, check repayment entries, and verify the current status. If you notice an incorrect payment or account entry, you can use the available service options to request a review and keep the reference details for follow-up.

Through the Bajaj Finance App or My Account

1. Open the Bajaj Finance App or visit the My Account portal.
2. Sign in using your registered mobile number and OTP.
3. Go to Service or My Relations.
4. Select the relevant loan account.
5. Open the available Loan Details, Statement of Account, or account summary option.
6. Review the outstanding amount, repayment entries, and account status.
7. If a payment or account entry appears incorrect, use the available service request option and provide the relevant details.
8. Save the request reference and supporting documents for future follow-up.

The available menu names may vary according to the loan account and platform version. Use only authorised digital platforms when accessing or submitting loan-related information.

What if you have received a legal notice?

If you have received a legal notice for an overdue loan, review it carefully along with your latest loan statement and payment records. Check the amount mentioned, loan account details, and any payment or response requirement stated in the notice. If you believe the amount is incorrect, keep your loan account number, payment date and amount, transaction reference or UTR, bank statement, payment receipt, current loan statement, copy of the legal notice, and previous service communications available for review. If the dues are genuinely outstanding, take the appropriate repayment action through an authorised channel rather than leaving the matter unresolved. If the issue relates to an uncredited payment or incorrect credit reporting, raise a service request with the relevant supporting documents and retain the request reference for future follow-up.