New RBI Credit Rules: Good News for Borrowers! RBI Changes Credit Score Rules, Getting Loans Will Be Easier
New RBI Credit Rules: The Reserve Bank of India (RBI) has taken a highly significant step aimed at bringing relief to borrowers. Starting from 2025, major changes have been introduced to the rules regarding credit score updates, enabling common people to see changes in their loan status or credit scores much faster. Previously, it used to take a long time for updates to reflect in the credit score after a loan was repaid; now, this will happen in a much shorter duration. This rule is particularly beneficial for those looking to take loans for buying a new home or car.
Let’s take a look at exactly what changes have been introduced in RBI’s new guidelines and what further developments await in 2026.
Bi-Weekly Credit Information Updates
Effective from January 1, 2025, the RBI has mandated banks and Non-Banking Financial Companies (NBFCs) to report their customers’ credit or loan information to credit bureaus like TransUnion CIBIL, Experian, Equifax, and CRIF High Mark at least twice a month.
Earlier, this information update used to take 30 to 45 days. Under the new rules, this lag has been reduced to 15 days. As a result, borrowers will be able to see information regarding their loan repayments or pre-payments on their credit reports very quickly. This is also advantageous for lenders as they will get an accurate picture of the customer’s current financial status.
Weekly Update Rules Coming in 2026
The RBI is not stopping here. From July 1, 2026, these rules are set to become even stricter and more consumer-friendly. According to the proposed rules, lending institutions will have to submit data to credit bureaus on a weekly basis (on the 7th, 14th, 21st, 28th, and the last day of the month). Additionally, a complete snapshot of all active and closed accounts must be submitted by the 5th of the following month. This will increase the transparency of credit information and reduce the likelihood of errors.
The timeline of changes is presented in the table below:
| Regulations | Update Timeline |
|---|---|
| Old Rules | 30-45 Days |
| 2025 Rules (Current) | 15 Days (Twice a month) |
| 2026 Rules (Future) | 7 Days (Weekly) |
Credit Score Changes and Real-Time Alerts
Many people think a credit score is a static number, but it is not. It changes constantly based on your loan applications, repayments, and dues. Under the new rules, a real-time alert system has been introduced for customer protection.
- SMS/Email Alerts: Whenever a bank or financial institution checks your credit report, you will immediately receive an SMS or email from the credit bureau.
- Fraud Prevention: If someone tries to take a loan in your name without your knowledge, you will know immediately and can take appropriate action.
Loan Rejection and Default Notification
From now on, banks or lending institutions cannot simply declare someone a ‘defaulter’ at will. Before reporting an account as default, the customer must be sent a notification, giving them a chance to rectify the situation.
Furthermore, if a customer’s loan application is cancelled or rejected, the bank must provide a specific reason. This will help the customer understand why their loan was rejected and allow them to address the issue in the future.
Penalty for Delay in Dispute Resolution
According to the RBI’s new framework, Credit Information Companies must resolve customer complaints within 30 days of receipt. If the issue is not resolved within 30 days, the complainant is entitled to a compensation of Rs 100 per day.
With these strict measures, it is expected that the harassment customers faced regarding errors or discrepancies in credit scores will be significantly reduced.
Disclaimer: This report is for informational purposes only. Please consult an expert before making any financial decisions or for complexities regarding loans.
