Need Advice: Defaulted on Loans 3 Years Ago – Want to Settle and Start Fresh

[Shreehawk474]

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Shreehawk474
PARTICIPANT
April 29, 2025 at 3:03 pm

Hi everyone,

A few years ago, when I was younger and honestly quite naive, I took out a few small loans from various instant loan apps — many of which were Chinese apps. Unfortunately, I lost that money in crypto and couldn’t repay. At the time, I panicked, and instead of finding a way out, I just defaulted. It’s been about 3 years now.

The total liability showing up on my CIBIL report is around 1.5 lakhs, and most of it has been reported to credit bureaus. Now that I’m in a better place mentally (though not financially), I want to clear things up and rebuild my credit.

My questions are:
• Should I settle these loans?
• If I offer to pay around 50%, is it possible for the lenders to mark the account as “closed” instead of “settled” and issue a No Objection Certificate (NOC)?
• Is there any point in trying to negotiate with them now?
• Has anyone here successfully cleaned up old defaults like this?

Any advice or personal experience would be really appreciated. I know I messed up, but I truly want to fix things now and move on with a clean slate.

Thanks in advance.

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