New Delhi, Oct. 14 -- Paying the final equated monthly instalment (EMI) on a personal loan does not guarantee an immediate improvement in the borrower's CIBIL score. The lender must first report the loan closure to the credit bureau, after which the updated information is processed and reflected in the credit report.

Under Reserve Bank of India (RBI) rules, credit institutions are required to update credit information every fortnight from January 1, 2025. However, the time taken for the revised information to appear in an individual's credit report can vary.

Moreover, closing a loan is only one of several factors that influence a credit score. According to TransUnion CIBIL, payment history, credit utilisation, the age of credit accounts...