Loan EMI CIBIL score – Loan EMI didn’t auto debit from bank account. What should I do now to fix my CIBIL score? 

Missing payments on a personal loan isn’t uncommon — financial setbacks or even technical glitches can happen to anyone. Many borrowers face situations like: “Loan EMI did not auto-debit from my account, and now it’s reflecting as a late payment in my CIBIL. What should I do?”

However, a default leaves a mark on your credit report in India for seven years, whether you eventually repay the loan or not. During that time, your credit score can drop significantly, making it harder to secure new loans, credit cards, or even rental agreements. The upside is that with smart financial habits, you can start rebuilding your credit and regain lenders’ trust.

Q: My loan EMI didn’t auto-debit from my bank account, and now my CIBIL report shows it as a late payment. How serious is this, and what should I do?

A: You’re not alone — missed payments can happen to anyone, often due to technical glitches like failed auto-debits. However, it’s important to act quickly because a loan default can significantly damage your credit report and make it harder to secure loans, credit cards, or even rental agreements in the future.

Dev Patel, Quantitative Research Analyst at 1 Finance, explains that while it’s a frustrating situation, you can resolve this and protect your CIBIL score.

Q: What’s the first step I should take if my EMI wasn’t debited?

A: Start by gathering all your evidence. Collect bank statements showing you had enough funds in your account on the EMI due date and confirming that the auto-debit didn’t go through. Also, keep any receipts if you paid the EMI manually afterward and any communication with your lender about the failed transaction. These documents are crucial in proving your case.

Q: Should I speak to my bank or the credit bureau first?

A: Contact your lender first. Clearly explain the situation, providing all details of the auto-debit failure and proof of sufficient funds. Request that they investigate the issue and correct the inaccurate reporting to CIBIL. Directly engaging your lender often results in a faster resolution.

Q: What if the lender doesn’t fix it or delays the correction?

A: You should formally dispute the error with CIBIL itself. You can do this online via CIBIL’s dispute resolution portal, by sending a written dispute letter through the mail (be sure to keep copies and proof of postage), or by contacting their customer service. Include full details of the loan and EMI in question, and attach all supporting documents.

CIBIL typically completes investigations within 30 days, working with your lender to verify the facts. You’ll be notified of the outcome in writing. If the error is confirmed, your credit report will be updated, and you’ll receive a free corrected copy.

Q: What if the dispute isn’t resolved in my favour?

A: Even if the dispute isn’t settled in your favour, you have the right to add a brief explanatory statement to your CIBIL report. This note can help future lenders understand the context behind the missed payment, potentially softening its impact.

Q: How long will this default stay on my credit report?

A: In India, a personal loan default remains on your credit report for seven years from the date the payment was due, regardless of whether you eventually repay the loan. This negative mark can significantly lower your credit score, especially if your record was previously strong. Payment history contributes around 35% to your credit score, so a default has considerable weight.

That said, the impact of the default diminishes over time, particularly if you manage other credit responsibly. Still, lenders will be able to see the default until it disappears from your report after seven years.

Q: Can I fix my credit score after this default?

A: While you can’t erase a default immediately, you can definitely rebuild your credit over time. Mr. Patel offers these steps:

Pay off any debts or collections linked to the default as soon as possible.

Make on-time payments on all current and future credit accounts.

Work on lowering your credit card balances.

Avoid opening multiple new credit lines at once.

Consider using a secured credit card to establish positive credit history.

Over time, consistent good credit habits will help your old default matter less in lenders’ eyes, improving your chances of getting new credit at better terms.

Bottom line: Don’t ignore a missed EMI, even if it wasn’t your fault. Act fast, gather evidence, communicate with your lender, and file a dispute with CIBIL if needed. It’s your credit report — own it and protect it.