Samatva Launches Credit Rehabilitation Services to Help Unintentional Loan and Credit Card Defaulters Rebuild Credit Scores

The company offers free credit counselling and, where necessary, facilitates new loans from regulated NBFCs at competitive rates to help customers settle their existing liabilities. It supports clients throughout the repayment journey of the new loan - all without charging any fees from unintentional defaulters

The venture is led by former bankers with over 25 years of experience in retail banking. Currently, its services are available across South Indian states, with plans to expand pan-India in a phased manner.

In his comments, Mr. Thallam Sreekumar, Co Founder, said, “India’s retail lending framework categorises borrowers based on the clearance of prior loan obligations and repayment discipline. However, this often results in the unintended misclassification of honest customers who miss payments due to temporary setbacks such as job loss, medical emergencies, or sudden business disruptions. The system today does not adequately distinguish between someone who wilfully defaults and someone who has faced a genuine life setback.

Once a borrower is marked as delinquent, it becomes extremely difficult to regain access to formal credit, even after settling or partially repaying outstanding dues. Samatva addresses this specific gap by helping ‘unintentional delinquent customers’ re-enter the formal banking system. We firmly believe that individuals should not be permanently defined by a difficult phase in their lives - everyone deserves a second chance.”

The company evaluates a customer’s credit report and current income profile to determine whether the individual qualifies as an unintentional defaulter. It then offers free credit counselling to help customers understand their credit score and chart a structured recovery plan. Customers may choose to settle their dues independently, or opt for the company’s assistance in arranging new loans from regulated NBFCs at competitive rates.

This structured approach helps improve credit health more effectively than settling debts in isolation. While independent settlement may lead to only a marginal improvement in credit score, disciplined repayment of a new, regulated loan facilitated through Samatva can help customers reach threshold credit score levels within six to nine months.

The loans arranged by Samatva do not carry the typical 3-5% foreclosure charges, enabling customers to close the loan early without additional cost. The success of the programme, however, depends on the customer’s commitment to timely repayment of the availed loan.

Mr. Thallam Sreekumar added, “Samatva does not work with chronic defaulters. We engage only with individuals whose credit profile was affected by a specific external event, who have made partial repayments, and who can demonstrate current income stability. Our focus is on helping such individuals re-enter the formal financial system in a disciplined and sustainable manner.”

To know more, visit https://samatvaawareness.in/

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