Have a Lot of Debt? Here's Why Credit Counselling May Help?

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People who are struggling with debt, such people can think about credit counseling. This will be provided only to the borrowers of member banks in the retail segment e.g. personal loam/vehicle loan/home loan/Credit Card and MSE sector whose credit exposure does not exceed Rs. 50 lakh.

Have a Lot of Debt? Here's Why Credit Counselling May Help?

Who can seek help?

Borrowers in distress and seeking credit counselling may directly apply to BCSBI in the prescribed application form. Banks can also encourage borrowers whose loan accounts are in default and who, in their opinion, need credit counselling to approach BCSBI.

If the applicant's case requires debt restructuring, the counsellor will formulate a debt restructuring plan in consultation with the concerned bank(s).

It is not obligatory for a bank to accept the debt restructuring plan drawn by the counsellor and the concerned bank is free to accept the solution in full or with modifications.

The credit counselling services are free of charge. Credit counsellors will maintain confidentiality of the information received from member banks/borrowers. Banks need to assure their borrowers on this to encourage them to avail of the credit counselling services.

Counselling are met with speed and efficiency, each member bank will identify a Nodal Officer, preferably from the Credit Department.

One can even mail regarding the query, at creditcounselingbcsbi@rbi.org.in

Counselling services will be available between10 am to 5.30 PM from Monday to Friday at the following address:
Banking Codes and Standards Board of India
C-7, Reserve Bank of India Building
Bandra Kurla Complex Bandra (East)
Mumbai - 400 051
Tel No (022) 2657 1105


Read more about: debt, loan
Story first published: Tuesday, December 23, 2014, 11:50 [IST]
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