Even though the loan has been repaid, why is CIBIL down? Now this drama will not happen, with the new rules of RBI you will get loan in a jiffy!

The tension of loan rejection is over: Has it ever happened to you that you have paid your EMI or loan in full, but when you went to take a new loan, the bank refused because your CIBIL score was not updated? It took weeks, even months, for the old record to be removed and the new one to be set.

But be happy now! Reserve Bank of India (RBI) Has given huge relief to crores of loan takers. RBI has made a major change in the rules so that your credit score will no longer be in months, but Every 7 days or 15 days (Fortnightly) Will be updated in.

Let us know how easy this is going to make your loan life.

No more waiting every month

Till now the system was very slow. Banks and lenders usually send your report to the credit bureaus (like CIBIL, Equifax) once a month. Meaning if you repaid the loan today (1st), the bank will inform CIBIL on 30th. Till then you will be considered a ‘defaulter’ or having a low score.

What is the new rule:
RBI has clearly said that banks and credit companies will now have to increase the speed of their reporting. Now they get customer data Fortnightly But that means it will have to be updated every 15 days (in some cases instructions to complete the process in 7 days).

What three major benefits will the common man get from this?

1. Superfast speed in getting loan
The biggest advantage is that if your previous record was bad and you have rectified it by depositing money, its effect will be immediately visible on your credit score. As the score improves, you will be able to apply for a new home loan or personal loan immediately. You will not have to wait for 30-40 days.

2. Easy to correct mistakes (Error Correction)
Many times, due to the mistake of banks, ‘due’ appears in the credit report. Earlier, it took a lot of sweat to get it repaired. Now since the data will be updated frequently, if any mistake occurs, it will be much faster to catch and correct it.

3. Easy to borrow
When banks have your real-time data, they will be able to understand the risks better. This will increase the chances of good customers getting loans at lower interest rates and quickly.

Some caution is also necessary

Remember, this sword is double edged.

• Good work: If EMI is paid on time, score will increase immediately.
• wrong deeds: If even one installment is missed (Missed EMI), its effect will be visible very quickly in the report and the score will fall drastically.

So, pay your installments on time and take advantage of this new gift from RBI!