Paid Off a Loan but Your Credit Report Is Not Updated? What the New Reporting Cycle Means

About this guide

You paid the last EMI. The lender sent a closure message. Maybe you even have the NOC. Then you check your credit report and the loan still appears open. For anyone preparing for a home loan, that can be stressful. An old outstanding balance or an account that has not yet been marked closed can affect how a new lender reads your obligations. The first reaction is often to panic and raise complaints everywhere. A better approach is to understand how credit reporting actually moves. Credit reporting is now expected on a fortnightly cycle RBI's credit information reporting framework requires credit institutions to keep borrower information updated on a fortnightly basis — as on the 15th and the last day of each month, or more frequently where the institution and credit bureau agree. The submission for the relevant reporting fortnight is expected within seven calendar days. This is a significant improvement over the older borrower experience where updates could feel much slower. But it still does not mean your report changes the same minute you make a payment. There is a chain: your…