Clearing a loan should bring relief, but seeing it listed as unpaid on your CIBIL report can quickly turn that relief into worry. Even after the lender confirms that all dues have been cleared, your credit report may take some time to show the change. This can leave borrowers wondering whether their payment was recorded correctly.
ALSO READ: Home Loan vs FD: How 25-Bps Repo-Rate Hike Affects Rs 50 Lakh
Delays can happen because banks and other lenders need time to update their records and share the latest details with credit bureaus. However, if a closed loan still appears as outstanding, it may affect your credit score and create problems when you apply for another loan.
Lenders often check your credit report before approving your application. Understanding why the delay happens and what steps to take can help you protect your credit history and avoid future trouble.
Banks and other lenders usually send new loan details to CIBIL every 30 to 45 days, so the change may take some time to appear. Sometimes, the lender may have received your final payment but didn't mark the loan as closed in their records. Any unpaid charges, such as extra fees for closing the loan early, late payment penalties or GST, can also stop the closure process.
Technical problems when the lender sends information to CIBIL can also delay the update.
You can take a few simple steps to fix the problem:
First, make sure that you have paid the full loan amount and lender has officially closed your account. Keep your loan closure certificate or No Objection Certificate (NOC) as proof.
Next, download your latest CIBIL report and check the loan account number, current status, pending balance, last update date and payment history. This will help you find out what information is incorrect.
If the details have not changed, contact your bank or lender. Ask them to confirm if they have informed CIBIL about the loan closure.
ALSO READ: Fixed vs Floating Home Loan: Which Becomes More Attractive After RBI Rate Hike?
If the lender has already sent the correct information but your report still shows the wrong status, raise a complaint through CIBIL's official dispute process. Make sure you keep checking the complaint until the issue is resolved and details are corrected.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.