Settled Gold Loan Account with ICICI Bank: How to Resolve and Convert to Closed
If you availed a gold loan from ICICI Bank in 2015 and it was not closed in the normal course, it is possible that the loan was declared a Non-Performing Asset (NPA). In such cases, the bank would resort to recovery actions, including auctioning the pledged gold to settle the loan. Once the loan is settled, it means the expenses had been covered, but the account might still show as a settled account in your CIBIL credit report. This article explains how you can pay off your dues and convert the settled account to a closed account.
Understanding the Settlement Process
When a gold loan becomes an NPA, the bank will inform the borrower and publish the information in the papers along with the intimation to the last known address. If the loan is settled, it means the bank has recovered the full or a part of the outstanding amount along with the additional expenses such as storage, auction, and other administrative charges. However, the bank may still show the account as settled in your credit report.
Steps to Pay Off Dues and Resolve the Account
The first step is to confirm the exact amount outstanding on the account. Contact the ICICI Bank branch where the loan was taken. They might require proof of residence and other documents to verify your identity.
1. Check the Outstanding Amount
Visiting the ICICI Bank branch or logging into your online banking account, you can check the exact outstanding amount. Ensure that the balance is correct and that you have all the necessary documents, such as loan agreement, and receipt of initial loan amount and any additional charges.
2. Pay Off the Outstanding Amount
Once you have confirmed the outstanding amount, pay off the dues through ICICI Bank's official channels. You can do this through online banking, by visiting the branch, or using an ATM/Net banking with sufficient funds.
3. Request for Account Closure
After settling the dues, you need to formally request for the account closure. Fill out the necessary forms and submit them to the branch. Provide any additional documentation they might require, such as proof of payment and relevant financial statements.
4. Follow Up
After submitting the forms and documents, follow up with the branch to ensure that the account is being processed for closure. In some cases, it might take time to process the closure. Remain patient and persistent in your follow-ups.
What to Do If Details Are Missing
Even after nine years, if the branch is unable to retrieve detailed information about the loss or sacrifice, you can still approach the branch and request for a resolution. ICICI Bank may be willing to provide a resolution given the time elapsed, especially if you are in a position to pay off the dues.
Impact on CIBIL Credit Score
A settled account can impact your CIBIL credit score, so it is important to resolve it as soon as possible. Once the account is closed, the credit report will reflect a closed account, which is better than a settled account. A closed account means the debt has been fully settled, and it has no further negative impact on your credit score.
Conclusion
Resolving a settled account with ICICI Bank requires timely payment of the outstanding dues and formal request for account closure. Even if details are missing, you can still approach the branch for a resolution. By following these steps, you can convert your settled account to a closed account and improve your credit report. Remember to keep all documentation and receipts related to your payments and account processing.