According to the Reserve Bank of India (RBI), all lenders and financial institutions in India must report borrowers’ credit data to credit bureaus (for instance, TransUnion CIBIL, Experian, etc.) every 15 days from 2025 onwards, which will completely replace the older reporting cycle of one month. Thus, repayments, loan closures, or defaults will now show up in your credit report much quicker than before as you will no longer have to wait weeks for an update. The credit score thus becomes more up-to-date and accurate, reflecting your financial behaviour in real-time.
Greater Clarity and More Borrower Power
The new rules of 2025 state that whenever a bank or NBFC wants to access your credit report (due to loan applications or other checks), you shall be sent a notification — either as an SMS or email — letting you know that the check was done. Besides this, if your loan application gets turned down, the lenders will now have to give a precise reason for the rejection, instead of loose or generic ones. This practice assists the borrowers to know what has affected their creditworthiness and gives them an opportunity to remedy the situation. Furthermore, the credit-reporting formats have been made uniform all over the bureaus and lenders which has led to a decrease in inconsistencies among different reports and an increase in their reliability.
Consistent Access and More Convenient Error Resolution
According to the reforms, individuals will now be assured that they are entitled to at least one free complete credit report per year (some sources indicate that access may be allowed more frequently) thus it will be more convenient and cheaper for them to keep track of their financial history. In case you detect any errors in your credit history — for example, defaults that were reported incorrectly, active accounts that were closed, or balances that were incorrectly stated — there is now an efficient dispute-resolution framework established. Credit bureaus and lenders have to reply to disputes within a stipulated time period.
What It Means for Borrowers — The Impact
- Quickly rewarded are positive actions: Paying EMIs, clearing loans, or credit card dues on time, and doing these will show in your score within a few days — thus enhancing your opportunities for future loans or credit.
- Faster is the penalty for delinquency: Now missed payments or defaults will affect your score within 15 days, which means that you will have less time before the effects of the damage appear.
- Enhanced power and sight: By means of constant updates and free report access, borrowers will be able to monitor their credit history closely, detect errors early, and take corrective measures.
- Increased transparency from lenders: You will be able to better comprehend credit decisions and improve where necessary through mandatory notifications and clearer explanations for loan outcomes.
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