what is written off in CIBIL?

As you know lenders utilise CIBIL, or the Credit Information Bureau (India) Limited, to determine the creditworthiness of potential customers. However, only some of you must be aware of what is write off in CIBIL. As Kajol or Arpita C mentioned, under specific conditions, certain debt categories might be written off in CIBIL, meaning they are no longer regarded as active debts. Let’s learn more about written off below.

What is meaning of written off in CIBIL report?

Understanding all of the words and components is essential to build a strong CIBIL record. As you know, the CIBIL report includes information about a person's credit history, including the number of accounts, the lender's name, the loan amount, and the history of payments.

The term "

Written-off

" is harmful to the health of your CIBIL score since it indicates that the borrower was unable to make payments on a specific loan or line of credit, forcing the lender to 'write-off' the loan amount. Let’s understand the written off using an example. 

• Let's imagine Aahana gave her cousin Shivangi a loan of Rs 1,000,000 to demonstrate how a loan write-off functions. All of that money is lost by Shivangi in stock trading. Additionally, she loses her job. Then, Shivangi goes and discusses her complete scenario with Aahana. 

• In this case, despite Shivangi’s bad financial situation, Aahana has decided against forgiving the loan and has just postponed loan repayment. 

• The borrowed funds are then eventually returned to Aahana by Shivangi after a huge delay.

Basically, when a bank considers a loan to be non-performing or non-collectible, it is written off in CIBIL. The lenders designate a loan account as a "Bad Debt" when a borrower misses more than 90 days of EMI payments. I hope you understand what is written off amount in CIBIL report.

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My friend was struggling to get his loan approved as his CIBIL was labelled "Written Off”. I also did not know what is the meaning of written off in CIBIL so I asked him about it. The meaning is easy. If an individual is unable to make payments against his/her outstanding loan for more than 3 months then he/she gets their CIBIL labelled as written off. This is the CIBIL written off meaning in simple words. This status does not allow the borrower to get his/her loan approved easily. Hence, try to pay off your debts on time. 

How can I remove write-off in CIBIL?

Once you know about the

written off in CIBIL meaning, you should also become aware of how to remove it.

The faster you get your label written off removed, the better it is. To clear this label, the borrower needs to pay off all the dues. If the person is unable to pay off the debt one at a time, he/she needs to pay on a particular date or at intervals as decided by the borrower and the lender. 

Does written off affect CIBIL? 

Yes. The label written off greatly affects the CIBIL score of a borrower. As soon as the debt gets labelled as written off, the CIBIL score of the person comes down, making him/her ineligible for credits in the future as well.

So this is the CIBIL written off meaning.

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Hey, My friends asked me about the written off meaning in CIBIL report the other day. Since my father works in a bank and he told me about it, I know the meaning. I hope you know that a good CIBIL score increases your chances of getting a loan. If you want to develop a healthy CIBIL report, you need to understand its contents first. One significant element of the credit report is the "Accounts" section. The “Account” section includes the details of every credit card and loan you have availed including the type of credit facilities (overdraft, auto, personal, home, etc.), lenders’ names,  account numbers, date of last payment, ownership details, current balance, loan amount, and more. Here, you will also find the "Status" on the account which defines the account’s "health". One of the “Status” is “Written off.” Let me explain what is written off in CIBIL. What is Written Off Status in CIBIL Report When you fail to make payments against the credit card/ outstanding loan amount for more than 180 days, the lender has to "write-off" the balance. The lender then mentions this on your CIBIL Report as well. Let me tell you that this status can cause problems in getting the approval of your credit card or loan applications as the lender may refuse to offer a credit card or loan to someone who failed to pay off previous credit cards or loans. I hope now you know what does written off mean in CIBIL. Read more: How to check CIBIL score? How to calculate CIBIL score for home loan? How to improve CIBIL score immediately? How to remove settled status from CIBIL This is all I know about the written off meaning in CIBIL. I hope this helps! 😊