Loan Closed, But CIBIL Report Shows Unpaid Status
Clearing a personal 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 all dues are cleared, your credit report may take time to reflect the change. This delay can leave borrowers questioning whether their payment was recorded correctly. Delays can happen because banks and other lenders need time to update their records and share the latest details with credit bureaus. ALSO READ: Home Loan vs FD: How 25-Bps Repo-Rate Hike Affects Rs 50 Lakh.
Banks and other lenders typically send updated loan details to CIBIL every 30 to 45 days, which can explain the lag. Sometimes, lenders receive the final payment but fail to mark the loan as closed in their records. Outstanding charges, such as early closure fees, late payment penalties, or GST, can also prevent the closure process. Additionally, technical issues when transmitting data to credit bureaus may cause delays. The reporting cycle means that even after the lender updates its internal system, the information is batched and sent to the bureau only at the end of the cycle, which can add several weeks to the process. Technical glitches in data transmission can delay the update to the bureau.
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To address the issue, start by ensuring you have fully paid the loan and received an official closure certificate or No Objection Certificate (NOC). Download your latest CIBIL report and verify the loan account number, current status, pending balance, last update date, and payment history. This helps identify discrepancies. 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?
