Can a family member report a personal loan to credit bureaus?

Answer

A:

No, a family member cannot report a personal loan to credit bureaus in India unless they are a registered lender or financial institution.

---

Here's Why:

1. Credit Bureaus Work with Authorized Lenders Only
   Credit bureaus like CIBIL, Experian, Equifax, and CRIF High Mark only accept data from banks, NBFCs, or other RBI-registered lenders.

2. Personal Loans Between Individuals Aren’t Tracked
   If you lend money informally to a friend or family member (without using a formal lending platform), it won't appear on either person's credit report.

3. You Can’t Affect Their Credit Score Personally
   Only verified lenders can influence someone’s credit report. So even if someone doesn’t repay you, you can't mark them as a defaulter on CIBIL or other credit bureaus.

---

What You Can Do Instead:

• Use a Legal Agreement: Create a loan agreement signed by both parties and ideally notarized.

• Maintain Proof: Keep all records like bank transfers, chats, or messages about repayment.

• Legal Action: If they refuse to repay, you can file a civil recovery suit and, in some cases, pursue criminal action if cheating is involved.

---

Need Legal Help for Recovery?

Call: +91 9625961599
Visit: www.legals365.com
Advocate B.K. Singh and his team are experts in personal money recovery cases.

.