Real Story Begins
Hi, I’m Jagadeesh from Chennai, and this is the full account of how I clawed my way back from a 460 CIBIL score, six credit card defaults, two personal loan write-offs, and nearly a decade spent dodging recovery agents to finally I got 785 CIBIL SCore and secure a ₹30 lakh home loan at 9.4% interest at India Bulls – Sammaan Capital Home Loan. If you’re struggling with poor credit, buried under EMIs, or simply wondering whether a home loan can ever be within reach again, this story is for you. I’ll walk you through every setback, strategic decision, and small victory—so you can replicate this path and, one day, hold your own approval letter in hand.
This post isn’t about showing off what I’ve achieved — it’s about sharing how I got here, step by step. If I can do it, you can too. Don’t lose hope or doubt yourself. Let this journey inspire and guide you forward.
CIBIL Hacks: How I Got a Home Loan After Settlement – My Real Story
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My Old CIBIL Report
2009: How It All Fell Apart
In early 2009, at the age of 23, I was like many young professionals—believing credit cards and easy personal loans were gateways to a better life. I opened six credit cards across different banks, juggling one EMI with another’s balance transfer offer. At the same time, I borrowed two personal loans—one from HSBC and another from Citi Financial, both carrying a steep interest rate of over 36%—to fund a small service business.
- Overleveraging: I never tracked cumulative interest or total dues.
- Business Loss: My venture failed within months, wiping out my capital.
- Job Loss: Economic downturn led to layoffs, and I was among them.
With zero income, calls from recovery agents became daily. They showed up unannounced, demanding payment. Overwhelmed by shame and fear, I did something stupid: I changed my phone number and moved across Chennai.
My Worst Credit History
2019: The Turning Point—Settlements and a Promise to Pay in Full
After a decade in hiding—enduring sleepless nights, financial anxiety, and isolation—I realized there was no honor in running away. I’m still earning, and still passionate about rebuilding my life. In 2019, I made a decision that changed everything:
Negotiating Settlements for Five Accounts
- I reached out, one by one, to the banks handling five of my worst credit card accounts. Through back-and-forth negotiations, I agreed to pay 40–50% of the outstanding balances as lump-sum settlements. These accounts were marked “settled” on my CIBIL report—a black mark, yes, but also closure.
A Moral Vow: Full Repayment
- Settlements felt like admitting defeat, so by 2022 I went further. I contacted every lender—banks, NBFCs, and collection agencies—for the remaining credit card and both personal loans. I raised fresh funds (more on that below), and paid 100% of all outstanding dues.
Why it matters: Full repayment—even after settlement—signals to future lenders that you accept responsibility and are committed to making things right.
2019–2022: Laying the Foundation for Credit Rehab
With my past formally closed, I faced another battle: re-entering the credit system. My score hovered around 460, and no bank would touch me. But I refused to accept “No” as a final answer.
- Consumer Durable Loan
2018: First Positive Entry – Consumer Durable Loan
Before I began my full-scale credit repair journey, one small but important milestone came in 2018. I purchased an air conditioner on a Consumer Durable Loan, and I made sure to repay every EMI on time without a single default. Though it was a small-ticket loan, it became my first positive mark on the credit report after years of inactivity and defaults. This repayment helped break the pattern of negative history and signaled to future lenders that I was capable of financial discipline again.
2. Pledging Gold for Emergencies
I pledged family jewellery at Union Bank to secure a gold loan at 9.5% interest. This gave me emergency liquidity without resorting to high-cost, unsecured lenders.
3. Secured FD-Backed Credit Card
Next, I opened a ₹50,000 FD at Union Bank and applied for their FD-Backed Credit Card. This was my re-entry ticket. With zero utilisation and full monthly payments, I demonstrated perfect repayment discipline.
4. Strategic Credit Building with Small Loans
To further strengthen my credit profile, I deliberately took on two small loans with the goal of creating consistent positive repayment history.
- In mid-2023, I borrowed ₹60,000 from Piramal Finance at a steep 22% APR. While the interest was high, I treated this as a disciplined exercise. Every single EMI was paid on time, adding a much-needed positive entry to my CIBIL report.
- Around the same time, I also secured a ₹2 lakh personal loan from IDFC First Bank at a more reasonable 12% interest for a 1-year tenure. I completed all repayments perfectly and without delay, further reinforcing my creditworthiness.
Within two years of these steps, my score climbed from 460 to around 700—proof that strategic secured credit plus flawless EMI behavior can turn the tide.
2023: Rejections, Revisions, and Rare Persistence
By early 2023, my CIBIL score touched 785. I compared SBI home loan interest rates, researched NBFCs like Indiabulls (Sammaan Capital), and even priced home loan insurance and tax benefits. I felt ready—but my first two applications were shockingly rejected.
- Attempt #1: Declined due to past settlements and write-offs, despite excellent recent repayment.
- Attempt #2: Another decline; lenders still saw my blemished history as a risk.
Crafting the Winning Package
For my third try, I went above and beyond:
- Credit Department: I clearly explained my case to the credit team. Typically, they don’t go deep into the entire credit history beyond the last 2 to 3 years. My current job and stable income also played a key role in supporting my approval.
- Document Avalanche: Bank statements, FD receipts, gold loan ledger, and closure letters from Piramal and IDFC First.
- Income Proof Upgrade: Secured a new employment contract with a 30% salary hike and provided six months of bank credits showing the increase.
- Personal Reference: I introduced Mr. Murali of Cashbazaar.in (more below) as my Home Loan DSA partner, whose guidance lent further credibility.
Finally, the underwriter said “Yes.” I secured ₹30 lakh at 9.4% floating.
A Special Thanks to My Guide – Mr. Murali of Cashbazaar.in
For his guidance—grateful to be featured in their testimonials.
A pivotal moment in my journey was meeting Mr. Murali, my Home Loan DSA Partner at Cashbazaar.in. With his deep knowledge of CIBIL recovery tactics and product expertise, he advised me on the exact sequence of jewel pledges, FD-card applications, and structured loan closures. Thanks to his patient guidance and trusted network of lenders, I navigated every negotiation confidently. If you want a true partner in your credit rehabilitation and home-loan quest, I strongly recommend reaching out to Mr. Murali through Cashbazaar.in—his support was the final spark that lit my way to approval.
Lessons Learned: Your Roadmap from Default to Disbursement
- Don’t Shy Away—Negotiate Settlements
Settling partial dues stops further damage. But always pair this with a plan to fully repay later. - Use Secured Credit to Rebuild
FD-backed cards, gold loans, and small secured products are low-risk tools to prove on-time behavior. - Small, High-Interest Loans Can Help
A ₹60,000 Piramal Finance loan taught me discipline. Yes, interest is steep—but the score-boost is worth it. - Scale Up Consciously
When comfortable, take a slightly larger loan (like my ₹2 lakh IDFC First loan at 12%) and repay without delay to solidify lenders’ trust. - Monitor Your CIBIL Religiously
Check quarterly. Dispute inaccuracies. Celebrate every point gained. - Apply Sparingly
Each hard inquiry costs points. Research thoroughly before hitting “Submit.” - Showcase Income Growth
A salary hike, bonus, or new contract can tip the scales, even more than your score. - Document Everything
Cover letters, closure letters, FD receipts—all add layers of credibility. - Understand Loan Nuances
Compare interest rates, prepayment charges, home loan insurance, and tax benefits before selecting a lender. - Embrace the Emotional Journey
Shame, guilt, and fear are normal. Join communities, seek counseling, and remember you’re not alone.
Where I Stand Today
- Home Ownership & EMI Details: I now service a ₹30 lakh home loan at 9.4%, with a 20-year tenure and a monthly EMI of ₹27,769. I purchased a 2 BHK, 860 sq ft flat, which I’ve since rented out for ₹18,000 per month. This rental income lets me pay only ₹10,000 from my salary each month toward the EMI.
- Accelerated Prepayment Plan: With this surplus, I plan to ramp up payments and close my loan within 5 years—slashing years off the tenure and saving lakhs in interest.
- Emergency Fund & Credit Usage: I maintain a six-month emergency fund in liquid assets and keep credit utilization under 30%.
- Zero Late Payments & Auto-Debit: All EMIs and card dues are on auto-debit to avoid slips.
- Tax & Insurance Savvy: I claim Section 80C deductions on principal and Section 24(b) deductions on interest, plus hold a robust home loan insurance policy to protect against unforeseen events.
Frequently Asked Questions
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1. How long does credit rehabilitation typically take?
Realistically, 3–7 years. Settlements and write-offs remain on record for seven years, but consistent positive activity—secured cards, small EMIs—can lift your score in 18–24 months.
2. Should I go for a floating or fixed home loan rate?
Floating rates (like my 9.4% floating) often start lower and adjust with market rates. If you expect interest rates to fall or want lower initial EMIs, choose floating. Fixed rates offer predictability but can be higher initially.
3. Are NBFC home loans a good fallback?
Yes. Non-bank lenders (e.g., India bulls – Sammaan Capital) can be more flexible with past credit blemishes—though interest rates may be 0.1–0.5% higher than major banks. Always compare total cost of borrowing (including processing fees and prepayment penalties).
Conclusion
My journey isn’t over—it’s a five-year testament to hard work and perseverance. What began as saving for my son’s education unexpectedly led to securing a ₹30 lakh home loan at 9.4%. Going forward, I’ll apply the same discipline to arrange an education loan that ensures his future success. Stay positive, be polite, and trust that good things take time—your breakthrough will come if you never give up. When you need expert guidance for a home loan or an education loan, reach out to Mr. Murali at Cashbazaar.in—his support can help you navigate every step of your financial journey.
Stay patient. Stay focused. And never give up.
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