Steps to Take if Your Loan is Closed but Not Updated in Your CIBIL Report
Have you recently closed a loan but noticed that your credit report through CIBIL is not reflecting the closure? This can affect your credit score and future loan approvals. Lenders may take 30 to 60 days to report to credit bureaus that the business loan has been closed, even if it was fully paid back. At Red Fort Capital, we understand how crucial an accurate credit report is for your financial health.
In this blog, we will explore the common reasons why your closed loan might not be updated in your CIBIL report and provide a clear, step-by-step guide on the actions you can take to ensure your credit report reflects your actual loan status. Timely updating is essential to maintain a healthy credit profile and access better financial opportunities.
What is a CIBIL Report and Why is It Important?
CIBIL is one of India’s leading credit information companies that helps lenders assess creditworthiness by providing a comprehensive credit report and score. Timely and accurate updates in CIBIL reports are critical for maintaining a good credit score and ensuring smooth loan approvals.
Why Does a Loan Closure Sometimes Not Reflect on CIBIL?
- Delay in lender reporting to CIBIL
- Data entry errors or technical glitches
- Mismatched loan account details in credit bureau records
Step-by-Step Guide on What to Do if Your Closed Loan is Not Updated in CIBIL Report
Step 1: Check Your Credit Report Thoroughly
Download your latest credit report from the official CIBIL‘s website to identify discrepancies. Cross-check loan account numbers, payment histories, and closure dates.
Step 2: Contact Your Lender
Reach out to the customer service or credit department of your lender. Request them to verify whether the loan closure status has been reported to CIBIL.
Step 3: Submit a Formal Dispute with CIBIL
If your lender confirms the closure but CIBIL report is still incorrect, raise a dispute on the CIBIL website, providing necessary loan closure documents such as NOC (No Objection Certificate) or closure letter.
Step 4: Follow Up Regularly
Keep regular follow-up with both your lender and CIBIL until the report gets updated. Credit bureaus usually take a few weeks to make corrections.
Step 5: Monitor Your Credit Report
After the update, keep monitoring your credit score periodically through the CIBIL website.
Additional Tips to Avoid CIBIL Report Discrepancies
- Always keep copies of loan closure documents.
- Regularly check your credit report for timely updates.
- Use authorized digital platforms for loan repayment and communication.
Conclusion
An accurate CIBIL report is vital for securing future loans and financial products. If you find that your loan closure is not reflecting in your CIBIL report, promptly follow these steps to correct it. Red Fort Capital is here to support you through every step of your lending journey.
At Red Fort Capital, we believe in building long-term partnerships founded on trust, transparency, and mutual growth. Our goal is to help businesses and individuals achieve lasting financial success through responsible lending and continuous support.
About Red Fort Capital
Red Fort Capital is dedicated to empowering Indian MSMEs (Micro, Small, and Medium Enterprises) on their path to business growth through customized business loans. We understand that securing a business loan in India can pose significant challenges, particularly when factors like a less-than-ideal credit score, a relatively short business history, unclear financial records, or variable cash flow come into play.
As a respected Non-Banking Financial Company (NBFC), we take pride in offering a diverse range of secured business loans, spanning from 1 to 10 Crores. What sets us apart is our remarkable ability to disburse funds fast, in just 7 days. Our financial solutions are meticulously designed to cater to a spectrum of needs, including working capital requirements, equipment and machinery purchases, invoice/bill discounting, and last-mile financing, among others.
