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CIBIL & Credit Bureau

Settled or Closed Loan Still Showing as Active on CIBIL

You repaid or settled a loan and received a NOC/closure letter, but CIBIL still shows the account as "Active" or with an outstanding balance. This is damaging your credit score and possibly affecting your ability to get new credit.

Applies to: Banks, NBFCs, and all credit bureau-reporting lendersCICRA 2005 + RBI Master Direction on Credit Information Reporting

⚖️Your Rights Under RBI Regulations

Lenders must report loan status updates to credit bureaus within 30 days of a change (closure, settlement).

If a loan is closed but showing active, this is a factual error and the lender must correct it.

You can raise a direct dispute with CIBIL — they must investigate within 30 days.

If the bank does not respond to CIBIL's query within 30 days, CIBIL must update the record based on your documents.

💰 What You Can Recover

Correction of credit report. Compensation for credit denial or higher interest rates caused by the wrong entry.

⏱ Response Deadline

Raise CIBIL dispute immediately. File with Ombudsman after 30 days if unresolved.

📋Step-by-Step — What to Do

1

Get your credit report from cibil.com (free once a year).

2

Raise a dispute on CIBIL website: Credit Report → Raise a Dispute — attach your NOC/closure letter.

3

Simultaneously write to the lender citing CICRA 2005 — demand they update CIBIL within 7 days.

4

File with RBI Ombudsman if not corrected within 30 days.

🏛 Where to Escalate If Bank Doesn't Respond

RBI Integrated Ombudsman — cms.rbi.org.in (select "Credit Information" category)

⚖️

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Governing RBI Circular
CICRA 2005 + RBI Master Direction on Credit Information Reporting
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