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Whose loan is on my CIBIL report: Not mine!

08-Jan-2016 written by : FSI-Team

Most of us when reading the above statement will be intrigued (I was as I thought that does not happen but a little research shows it does) while some who may have witnessed a similar situation may nod in agreement. So coming back to the situation at hand, it is possible that due to some error or oversight you may have a loan in your statement that is not yours or you feel is not yours. This not only has the potential to impact your CIBIL Score, but has the potential to adversely impact the underwriting decision when you apply for a credit facility.

Whose Loan is it anyways?

Let us understand as to why does such a situation arise? Since understanding the cause will help you address it more effectively.

  • A Genuine Error: In majority of cases, an error occurs due to reporting error by the lending institutions and banks.

  • A Loan that you stood guarantee for: When a person signs as a guarantor to a loan and the repayments do not happen in time, the loan shall get reported on guarantor’s credit report as well.

How to Get Errors Rectified in Your CIBIL Report?

If going through your CIBIL Report you discover that there is a loan that has been erroneously included and which does not belong to you then it is time to act so that you are able to have the error rectified and improve CIBIL score. There is mechanism and process laid down which can help you in sorting out such issues,

You can fill an online dispute form that is available on the CIBIL website. The nine digit number mentioned in your credit information report (CIR) which is known as the control number is required along with other details for this. This helps CIBIL in identifying the specific report for which the customer has raised a CIBIL Dispute. After the form is submitted you will receive a “reference id” which you can quote in all future correspondence.

Once the form is submitted CIBIL contacts the relevant financial institution and verifies the details and checks with the concerned bank about the specific dispute. Thus if in your report there is loan from ABC Bank which has been included erroneously in the report, CIBIL will contact the bank for the required information as CIBIL is not authorized to add or remove any loan from your report. The bank will check their records to ascertain if any errors have been made at their end. The bank will then send a reply to CIBIL which will accordingly update the credit report.

CIBIL takes approximately 30 days to resolve a dispute; this largely depends on the time taken by the concerned financial institution. Once the information is received by CIBIL, it takes approximately 7 days to update the credit report. The customer is informed accordingly about the status of the dispute. If the customer is not satisfied with the resolution he can initiate a fresh complaint and CIBIL will re-verify with the concerned financial institution. Ideally a customer should get a fresh CIR to check if the desired solution has been reached.

All credit agencies have a dispute resolution mechanism in place. The customer can contact the relevant credit rating agency and get the dispute resolved; however do remember since the error is not on the part of the agency they cannot act immediately so some patience is required when trying to get an error removed from your report.


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