I am very close to finish my home loan. My query is at the time of home loan closure do banks inform CIBIL about the successful closure or do I need to inform them?


#1

I am very close to finish my home loan. My query is at the time of home loan closure do banks inform CIBIL about the successful closure or do I need to inform them?


#2

Banks update CIBIL about the successful closure of home loans but they are usually slow in updating the same. Request your bank in writing to inform CIBIL about your successful loan closure. This will reflect in an improvement in your CIBIL score. Check your credit score before closing your home loan. You can then compare the score once your loan is completed. The best way to make sure banks have informed CIBIL is to check your CIBIL score once the bank confirms that they have informed CIBIL to you. A successful loan closure will improve your credit score and will be reflected in your CIBIL score.


#3

I am looking at property options overseas. Is there a maximum limit I can spend as per law?


#4

You haven’t mentioned your residential status and I am assuming you are an Indian resident. In such a scenario all your foreign real estate purchase comes under the Liberalized Remittance Scheme (LRS) of the Reserve Bank of India. Under the scheme you can invest up to USD $ 250,000 (nearly Rs. 1.6 Crore) annually as an individual to purchase property overseas. Also note that if you buy a property overseas and rent it out your income will be added to income from house property tab in your income tax return.


#5

Hi Vishal,

When you take a loan, lenders are quick to inform credit information agencies such as CIBIL. However, they may not be very proactive when you close a loan such as a Home Loan. It is best to give a written request to your lender asking them to inform credit information agencies that your loan has been closed. Do ask them how long it will take for the update to happen. It usually takes only about 20-30 days for your Credit Score to get updated. Keep following up with your lender to ensure that they have passed on the information to credit information agencies. Once you get a confirmation from your lender that the information has been sent you can check your Credit Score to see that the account has been closed. If it is still not updated or your lender is not helping you, then you could write to credit information agencies to update your Credit Score along with the No Objection or No Dues Certificate provided by your lender. Credit information agencies usually get back to you within 15 days with a status update. Want to check your Credit Score now? Click here - https://www.bankbazaar.com/credit-score.html. It’s free!

Cheers,
BB Expert