RBI Cuts Wait Time : Loan Approvals to Get Quicker as Credit Scores Update Weekly

On 26 November, the Reserve Bank of India (RBI) issued draft guidelines under which Credit Information Companies (CICs) will be required to update credit scores every 7 days, starting 1 April 2026. This move is expected to make loan approvals smoother for borrowers who have to wait weeks for their updated scores to be reflected.

Financial institutions will now report credit data to the credit bureaus every week on the 7th, 14th, 21st, 28th, and the last day of each month, instead of the current bi-weekly cycle. This will ensure that even small changes, such as repayments, loan closure, or corrections to customer details, are reflected in the individual’s credit report sooner.

The updated data will reduce uncertainty for both lenders and borrowers and will make the entire lending ecosystem more transparent and responsive. The improvement will make a significant difference during loan applications, refinancings, and negotiations for better interest rates.

A part of this updated data will include the credit score, a three-digit number that summarises a person’s credit behaviour. A person’s credit score helps lenders understand how responsibly they have handled loans and credit cards in the past. Scores between 550 and 700 are good, and anything from 700 to 900 is considered very good.

Understanding What a Credit Score Means

The credit score is a major eligibility factor for lenders while reviewing applications. The stronger an individual’s credit score, the more likely it is that banks will approve loans or credit cards. The cut in wait time for credit reports will ensure that people won’t face delays or rejections due to their latest repayments or corrections not being updated in time.

Among the factors contributing to this score, 30% depends on the individual’s repayment history of paying EMIs and card bills on time. Another 25% depends on the mix of secured and unsecured loans. Credit exposure, which reflects how much debt a person currently carries, contributes to about 25%. The remaining 20% is influenced by credit utilisation, which measures how much of the available credit limit is being used.

How Credit Card Habits Impact Scores

For credit card holders, utilising just 30% of the total card limit can help maintain the credit score. Repeatedly exceeding the limit makes banks believe that the consumer is financially weak. In cases of good credit history and stable income, increasing the card limit and splitting expenses across two or three cards can also help. Maintaining a balance in loan types, avoiding excessive credit inquiries, and avoiding abrupt account closures can further support long-term score stability.

With the new credit score guidelines by RBI, the impact of these positive steps will now be visible much sooner. This will give borrowers quicker control over their financial profile.

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Monthly and Weekly Reports

To maintain accuracy, the new system will still include a full monthly update. By the 3rd of every month, banks will be required to send a complete data file containing all active accounts and all closed accounts from the previous month. This file will help credit bureaus reconcile all information without missing any details.

The weekly credit score updates differ according to the recent RBI credit score updates. Instead of sending the entire database every time, banks will only send incremental updates. These include new loan accounts, recently closed accounts, borrower-initiated changes such as updating KYC details or adding a guarantor, and any change in the loan’s status.

*Timeline for reporting credit information

So the monthly file will give the whole picture, and the weekly credit score updates will capture recent changes. With the new cibil score guidelines by RBI in place, credit profiles will stay current throughout the month.