INCOME TAX29 Sept 2026
Paid off your personal loan? Why your credit score might not jump right away | Mint
Repaying your last personal loan EMI won't lift your CIBIL score straight away. A closed loan stays on your credit report as part of your repayment history, and closing it can even cause a small, temporary dip, especially if you have few active accounts. Lenders usually update accounts within 30 to 45 days, so wait, then check and confirm the account shows 'closed', not 'settled'.
Key Statutory Highlights
- A closed loan keeps appearing on your credit report because it records your past repayment behaviour.
- Lenders generally report account information within 30 to 45 days, so checking right after the final EMI may still show the loan as active.
- A 'settled' status means the lender accepted less than the full dues, which can signal higher credit risk to future lenders.
Actionable Advice for Taxpayers / Founders:After your final EMI, collect the loan closure letter or No Dues Certificate from the lender, wait for them to report the closure, then check your credit report. If it is wrongly shown as active, carrying a wrong balance, or marked 'settled' despite full repayment, ask the lender to correct it first and raise a CIBIL dispute if that does not work.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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