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.
⚖️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
Get your credit report from cibil.com (free once a year).
Raise a dispute on CIBIL website: Credit Report → Raise a Dispute — attach your NOC/closure letter.
Simultaneously write to the lender citing CICRA 2005 — demand they update CIBIL within 7 days.
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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