How to Update Closed Loan Closure in CIBIL

Have you repaid your loan amount, but it still hasn’t been updated on your CIBIL report? There are a variety of reasons why loan closure might not be reflected in CIBIL, such as system error, pending paperwork, etc. This can be a bit annoying as you are finally waiting to see your credit score boosted. However, it is important to take relevant steps to fix this issue. If your CIBIL report is showing an active status for your closed loan, it can cause some issues for your future credit needs.

If you want to learn more about how to update the closed loan closure, in this blog, we’ll offer a step-by-step guide along with some impacts of an unclosed loan account and some smart tips to ensure a smooth process all the way through.

Why is it Important to Update Your Loan Closure In CIBIL

The CIBIL or Credit Information Bureau India Limited report plays a key role in determining your creditworthiness for future loans or financing options. Updating your loan status in CIBIL will ensure that you enjoy all the benefits that come with a timely repayment of your loan:

1. Credit Score

Timely payments and proper documentation will boost your credit score, helping you get easy access to better loan options, lower interest rates and flexible terms. Without a proper CIBIL report loan closure update, your score may drop.

2. Hassle-Free Loan Application

An unclosed loan status on your CIBIL will hamper your debt-to-income ratio, making your future loan approval difficult. This will also cause delays in your loan approvals due to an outstanding loan in your background.

3. Trust

An incomplete CIBIL profile will not be in your favour when opting for future loans, as it showcases unprofessional and irregular behaviour. Try to fix the issues and keep a check on your report every once in a while.

4. Possible Penalties and Late Fee

While you have completed your loan repayment, an unclosed status on your CIBIL report may bring in some unwanted charges or penalties due to delayed payment.

Step-by-Step Guide: How to Update Closed Loan Closure in CIBIL

Are you confused why your CIBIL account isn’t showing your loan as closed even after repayment? If yes, here’s a quick how to update closed loan closure in CIBIL guide to help you fix this:

Step 1: Get Your CIBIL Report

The first and foremost step is to acquire the latest CIBIL report. This will help you stay updated with the latest information and understand the discrepancy better. You can get your report by visiting the official CIBIL site.

Step 2: Contact Your Lender

Before investigating this with CIBIL, check with your lender or bank about the updated information. Ask them if they have sent the details about the loan repayment to CIBIL or not.

Step 3: Loan Closure Documents

Verify all the loan closure information to ensure that everything is correct and up to date. It includes information about:

• Loan Account Number
• Lender’s Name
• Status of the loan
• Outstanding Balance (should be zero, if repaid)
• No Objection Certificate (if applicable)

Step 4: Report Discrepancies to CIBIL

If there is any issue regarding how to fix closed loan status in CIBIL report, visit the official website of the CIBIL and lodge an official complaint regarding the status of your loan. Send all the necessary documents, such as bank statements, NOC or loan closure certificates with CIBIL.

Step 5: Follow Up

Generally, CIBIL takes around 30-45 days to process any dispute. Make sure to regularly check the status of your report and complaint to be in the loop.

Tips to Ensure a Smooth Loan Closure Process

With some smart habits and proper documentation, you can ensure that your loan closure is updated and verified on time with proper legal guidelines:

• Once you have submitted all your EMIs and your loan repayment is completed, ask your lender to provide you with a NOC. It will ensure a confirmed certification from the lender’s side.
• Always keep a copy of the loan closure certificate and final payment receipts after the process. These will help smooth out any discrepancies that may occur with the status later.
• Keep an eye on your CIBIL report and status. If you spot an error, make sure to check it with the authorities.
• If you have any doubts, contact your lender or get help from the CIBIL helpline.

Conclusion

Paying off your credit or loan is a liberating and rewarding experience for any borrower. With timely payments, you can enjoy a boosted credit score, better credit history and better loan options. However, if your closed loan status isn’t updated, it can leave a sour taste in your mouth. Hopefully, our guide on how to update closed loan closure in CIBIL has helped you understand the necessary steps to fix any situation like this. In addition to this, it is essential to consistently choose trustworthy financing options such as My Mudra that provide the lowest interest rates, simple documentation, and online assistance for a smooth experience.

With your previous loan settled with the help of our how to update closed loan closure in CIBIL guide, apply for a new one through My Mudra today!

Also read: Reasons for Loan Rejection Even with Good CIBIL Score