Outlook Money
Paying your final EMI doesn’t always mean the loan is officially closed. Many borrowers later discover their personal loan is still showing active in lender records or credit reports.
Loan status errors can occur due to delayed system updates, missed internal processing, or reporting gaps between lenders and credit bureaus, even when all EMIs are paid on time.
An active loan record allows lenders to demand EMIs, and damages your credit score. Ignoring it can create future problems when applying for new loans or credit cards.
Gather repayment receipts, bank statements, NOC, closure letters, and email communication. These documents are essential to prove you have cleared all dues successfully.
Reach out to the lender’s customer care or branch calmly. Share your documents and request immediate correction of records to officially mark the loan as closed.
Always follow up calls with emails or written communication. Maintaining a paper trail helps strengthen your case if the issue escalates later.
If your credit report still shows an active loan, raise a dispute with the credit bureaus. Submit supporting documents and request an investigation to correct inaccurate reporting.
If the lender fails to act, escalate to grievance cells, banking ombudsman, or consumer forums. Legal help should be the last option after all official channels are exhausted.