Why are home loan interest rates expected to fall?

Home loan interest rates are expected to fall due to the Reserve Bank of India (RBI) reducing the repo rate, making it cheaper for commercial banks to borrow money.

What is the repo rate?

The repo rate is the interest rate at which commercial banks borrow money from the Reserve Bank of India.

How does a lower repo rate affect home loan EMIs?

A lower repo rate reduces the cost for banks, which can lead to lower home loan interest rates, thereby reducing EMIs for borrowers.

When can borrowers expect the impact of falling interest rates on their EMIs?

The impact may be seen in 3-4 months, as banks usually take time to pass on the reduced rates to their customers.

Should home loan borrowers switch from fixed-rate to floating-rate loans?

Yes, switching to a floating-rate loan can be beneficial to take advantage of future interest rate cuts.

What is the repo rate?

The repo rate is the interest rate at which commercial banks borrow money from the Reserve Bank of India.

How does a lower repo rate affect home loan EMIs?

A lower repo rate reduces the cost for banks, which can lead to lower home loan interest rates, thereby reducing EMIs for borrowers.

When can borrowers expect the impact of falling interest rates on their EMIs?

The impact may be seen in 3-4 months, as banks usually take time to pass on the reduced rates to their customers.

Should home loan borrowers switch from fixed-rate to floating-rate loans?

Yes, switching to a floating-rate loan can be beneficial to take advantage of future interest rate cuts.

How can I increase my CIBIL score quickly?

Pay all EMIs and credit card bills on time, reduce credit card usage below 30%, avoid new loan applications, and check your credit report for errors regularly.

What is the repo rate?

The repo rate is the interest rate at which commercial banks borrow money from the Reserve Bank of India.

How does a lower repo rate affect home loan EMIs?

A lower repo rate reduces the cost for banks, which can lead to lower home loan interest rates, thereby reducing EMIs for borrowers.

How to get 700 credit score in 6 months?

You can reach 700 in 6 months by paying bills on time, lowering outstanding balances, avoiding new debt, and maintaining consistent credit behaviour.

What happens if I use 90% of my credit card?

Using 90% of your credit limit increases credit utilisation, negatively impacts your CIBIL score, and signals higher credit risk to lenders.

How to get 750 CIBIL score?

To reach a 750 CIBIL score, maintain timely payments, keep credit utilisation low, have a balanced credit mix, and avoid frequent credit enquiries.

Can I increase my CIBIL score in 30 days?

Yes, minor improvements are possible in 30 days by clearing overdue payments, reducing card utilisation, and correcting errors, but big jumps take longer.

Is 721 a good CIBIL score?

Yes, a 721 CIBIL score is considered good and makes you eligible for most loans and credit cards at reasonable interest rates.

What is the 2 2 2 credit rule?

The 2 2 2 rule suggests having two credit cards, using them for small amounts, and repaying in full within two days of the bill generation.

Is a 900 CIBIL score possible?

No, a 900 CIBIL score is not possible as the maximum CIBIL score range is from 300 to 900, and scores above 800 are excellent.

How bad is a 580 credit score?

A 580 credit score is considered poor and may lead to loan rejections or higher interest rates, indicating missed payments or high credit usage.

What is the 2/3/4 rule for credit cards?

The 2/3/4 rule advises limiting credit cards to two per bank, three per network, and four total to manage credit responsibly.

How to get 800 CIBIL score?

To get an 800 score, pay all dues on time, keep utilisation under 30%, maintain old credit accounts, and avoid unnecessary loan enquiries.

Can I raise my credit score 100 points in 30 days?

Raising 100 points in 30 days is difficult but possible if errors are corrected, dues are cleared, and credit utilisation drops sharply.

What is the 15 3 credit card trick?

The 15 3 trick involves paying credit card bills 15 days before the due date and again 3 days before to keep reported balances low.

Is 750 a good CIBIL score?

Yes, a 750 CIBIL score is very good and improves chances of loan approval with better interest rates and flexible terms.

How to get 800 credit score in 45 days?

An 800 score in 45 days requires disciplined repayments, clearing outstanding dues, lowering credit usage, and no new credit applications.

How to increase CIBIL score from 600 to 750 in 30 days?

Improving from 600 to 750 in 30 days is rare, but partial improvement is possible by paying all dues, settling defaults, and reducing balances.

Is a 900 CIBIL score possible?

No, a 900 CIBIL score is not possible as the maximum CIBIL score range is from 300 to 900, and scores above 800 are excellent.

How bad is a 580 credit score?

A 580 credit score is considered poor and may lead to loan rejections or higher interest rates, indicating missed payments or high credit usage.

What is the 2/3/4 rule for credit cards?

The 2/3/4 rule advises limiting credit cards to two per bank, three per network, and four total to manage credit responsibly.

How to get 800 CIBIL score?

To get an 800 score, pay all dues on time, keep utilisation under 30%, maintain old credit accounts, and avoid unnecessary loan enquiries.

Can I raise my credit score 100 points in 30 days?

Raising 100 points in 30 days is difficult but possible if errors are corrected, dues are cleared, and credit utilisation drops sharply.

What is the 15 3 credit card trick?

The 15 3 trick involves paying credit card bills 15 days before the due date and again 3 days before to keep reported balances low.

Is 750 a good CIBIL score?

Yes, a 750 CIBIL score is very good and improves chances of loan approval with better interest rates and flexible terms.

How to get 800 credit score in 45 days?

An 800 score in 45 days requires disciplined repayments, clearing outstanding dues, lowering credit usage, and no new credit applications.

How to increase CIBIL score from 600 to 750 in 30 days?

Improving from 600 to 750 in 30 days is rare, but partial improvement is possible by paying all dues, settling defaults, and reducing balances.

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A Guide To Improving Your CIBIL Score

Komal Bajpai

Author

Updated: 20-01-2026 at 3:30 PM

The Reserve Bank of India (RBI) has introduced a major reform in the credit reporting system that directly affects borrowers across the country. Lenders will now be required to share borrowers’ credit information with Credit Information Companies (CICs) every two weeks instead of once a month. This change aims to improve transparency, accuracy, and timeliness in credit reporting.

With faster updates, borrowers will be able to see changes in their credit behaviour much sooner. Whether it is a timely EMI payment, a missed due date, or a closed loan account, everything will now reflect more quickly in your credit report. This reform is expected to help people improve their CIBIL score, track their financial health more effectively, and make smarter borrowing decisions.

Before understanding how this update works, let’s first understand what a CIBIL score is and why it matters so much.

Overview

The table below gives the key highlightsof the Cibil Score:-

Parameter	Details
Regulatory Authority	Reserve Bank of India (RBI)
Previous Reporting Frequency	Once a month
New Reporting Frequency	Every 14 days (fortnightly)
Applicable To	Banks, NBFCs, and all lending institutions
Credit Information Companies (CICs)	CIBIL, Experian, Equifax, Highmark
Impact on CIBIL Score	Faster updates of payments, defaults, and closures
Benefit for Borrowers	Quicker cibil score improvement and better credit tracking
Benefit for Lenders	More accurate and up-to-date borrower data
Error Resolution	Faster identification and correction of credit report errors
Loan Approval Impact	Improved decision-making for home, personal, and other loans
Overall Objective	Strengthen transparency and efficiency in India’s credit system

What Is A CIBIL Score?

A CIBIL score is a three-digit number that represents your creditworthiness. It ranges from 300 to 900, and the higher the score, the stronger your credit profile. Your score is calculated based on your borrowing and repayment behaviour, including loan repayments, credit card usage, and credit enquiries. This process is known as cibil score calculation.

The Credit Information Bureau (India) Limited, popularly known as CIBIL, is India’s oldest and most widely used credit bureau. Along with CIBIL, there are three other RBI-licensed credit bureaus in India: Experian, Equifax, and Highmark. CIBIL alone maintains credit records of over 600 million individuals and more than 32 million businesses.

A good score is essential if you want access to affordable credit. Lenders use this score to decide whether to approve your loan or credit card application and what interest rate to offer. This is why people often search for how to improve their CIBIL score or how to increase their credit score when planning major financial decisions.

Also Read: A Guide To Improving Your CIBIL Score Effectively

What Is a Good CIBIL Score Range?

Understanding the good CIBIL score range is important for anyone planning to borrow money.

750 and above: Considered excellent. Loans are easily approved with lower interest rates.
650–749: Fair score. Loan approval is possible, built may come with higher interest.
Below 650: Risky category. Loan approval becomes difficult.

A strong score plays a crucial role in the CIBIL score for loan approval, especially when applying for a CIBIL score for home loan or CIBIL score for personal loan, where lenders assess long-term repayment capacity.

Why CIBIL Score Matters So Much?

Your CIBIL score acts like a financial report card. A high score shows that you are a disciplined borrower, while a low score signals higher risk.

Banks and NBFCs rely heavily on this score to:

Approve or reject loan applications.
Decide on interest rates.
Determine the loan amount and tenure.

This is why CIBIL score improvement has become a priority for many individuals, especially as access to digital credit continues to grow in India.

What Is the New RBI Update on Credit Reporting?

Earlier, lenders reported borrower data to credit bureaus only once a month. Under the new RBI directive, lenders must now submit credit information every 14 days.

This means:

Your EMI payments will reflect faster.
Missed payments will show up earlier.
Closed loans will update quickly.
Credit utilisation changes will appear sooner.

As a result, your cibil score increase or drop will happen much closer to real-time than before.

This update will significantly change how borrowers manage their credit, making it easier to check CIBIL score for free and track improvements or issues without long delays.

Why Has RBI Introduced This Change?

The RBI aims to strengthen India’s credit ecosystem by improving the accuracy and reliability of credit data. Monthly reporting often caused delays, errors, and disputes that took weeks or even months to resolve.

With fortnightly reporting:

Credit data becomes more accurate.
Consumer disputes can be resolved faster.
Lenders make decisions based on up-to-date information.
Borrowers gain better control over their financial profiles.

According to TransUnion CIBIL MD and CEO Rajesh Kumar, this move will significantly strengthen the credit information ecosystem and improve lending decisions across the country.

Also Read: RBI Tightens Personal Loan Rules: Credit Scores To Be Updated Every 15 Days

How Will This Help Consumers?

This reform offers multiple benefits to borrowers. Here’s what consumers can expect:

Faster Credit Score Updates

Earlier, even if you paid your dues on time, the improvement in your score took weeks to reflect. Now, CIBIL score improvement will be visible much faster, encouraging better financial discipline.

Better Credit Tracking

With frequent updates, you can monitor your score regularly and take timely steps to improve credit score India.

Early Error Detection

Mistakes in credit reports can negatively impact loan approvals. Faster updates allow you to identify and correct errors quickly.

Improved Loan Eligibility

A strong and updated score improves your chances of better loan terms, especially for cibil score for home loan and cibil score for personal loan applications.

How Will This Help Lenders?

Lenders will also benefit significantly from this update.

Access to real-time borrower data.
Reduced credit risk.
Better underwriting decisions.
Faster loan approvals.

Accurate credit profiles help lenders offer customised products while reducing default risks, creating a win-win situation for both parties.

Also Read: Benefits Of Making Women A Co-Borrower In The Loan

Impact on Loan Approvals Going Forward

With fortnightly updates, lenders will place even greater importance on recent repayment behaviour. Borrowers with disciplined habits will benefit the most, while irregular payments will reflect quickly.

This makes maintaining a strong credit score for loan approval more important than ever, especially for high-value loans like housing finance.

Conclusion

The RBI’s decision to mandate fortnightly credit reporting is a progressive and consumer-friendly reform. It enhances transparency, accuracy, and accountability in India’s credit system. For borrowers, it creates a strong incentive to maintain good financial discipline and actively work towards how to improve CIBIL score.

With quicker updates, better tracking, and improved lender confidence, this change will help millions of Indians improve their credit score India, access better loan terms, and make informed financial decisions. In the long run, it strengthens trust in the credit ecosystem and promotes responsible borrowing.

Staying aware, paying dues on time, and monitoring your credit report regularly are now more important than ever.

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