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Loan Paid But Still Active on Credit Report? Here Is How to Fix It
- •An active or incorrectly reported closed loan can complicate fresh credit applications and make your obligations look higher.
- •Check your loan closure letter, no-dues certificate, and bank statements to confirm the account has been officially closed.
- •Contact the lender directly via official channels with your supporting documents to request a status update to credit bureaus.
- •Raise a formal dispute through the credit bureau's website if the error persists, attaching your closure documents.
- •Escalate unresolved issues to the lender nodal officer or the RBI Complaint Management System, and avoid paying unauthorized agents.
Key Questions Answered
First, check your closure documents like the no-dues certificate, final payment receipt, and bank statements to confirm the loan is fully paid. Next, contact the lender through official channels to request an update to the credit bureau, and finally, raise an online dispute with the credit bureau if the error persists.
According to CIBIL, dispute resolution generally takes about 30 days, depending on how quickly the lender responds to verify the information. The bureau coordinates with the credit institution and cannot independently delete or alter an entry without the lender's confirmation.
If the lender fails to resolve your complaint, you can utilize its formal grievance process and approach its designated nodal officer. If the issue remains unresolved after the required period, you may be able to file a complaint through the RBI’s Complaint Management System, depending on eligibility conditions.
