Does Loan Restructuring Affect Your CIBIL Score? Here’s How It Is Actually Recorded

Loan restructuring refers to a lender-approved change in your loan terms, usually to align repayments with your current situation. In your CIBIL report, it is reflected as an update to the account details, along with the repayment track record after the change. 

Think of it this way: the report captures what was revised and how the revised plan is being followed. 

What is Loan Restructuring

Loan restructuring refers to a formal change in the original terms of a loan, carried out with the lender’s approval. This could involve extending the repayment tenure, revising the instalment amount, offering a temporary moratorium, or adjusting repayment schedules to better align with current cash flows. 

It is important to note that restructuring is not the same as missing payments. It is a documented modification agreed upon by both parties and reported as such. 

How Loan Restructuring is Reflected in Your CIBIL Report

When a loan is restructured, the lender updates this status while reporting account information to CIBIL. The report typically reflects that the loan terms were modified, along with updated repayment details. 

There is no standalone ‘restructuring score’. Instead, the restructured loan continues to sit within your active credit accounts, carrying information about revised terms and repayment behaviour post-restructuring. 

Also Read: Loan Restructuring Impacts Your CIBIL Score and Eligibility 

Difference Between Loan Restructuring and Loan Rescheduling

These two terms are often used interchangeably, but they are not identical. 

Loan restructuring usually involves broader changes to loan terms, such as tenure extension, EMI revision, or temporary relief measures. Loan rescheduling, on the other hand, focuses on altering the payment timeline without changing the core loan structure. 

From a reporting standpoint, restructuring tends to be more explicitly reflected, while rescheduling may appear as revised payment terms within the same account framework. 

How Lenders Treat Restructured Loans for Credit Scoring

The treatment depends on overall credit behaviour, repayment consistency after restructuring, and the time that has passed since the modification. 

A borrower who maintains steady repayments post-restructuring is generally viewed differently from one with repeated adjustments or irregular payments. Over time, positive repayment history begins to outweigh the initial restructuring flag. 

Impact of Loan Restructuring on Your Credit Score

In some cases, there may be a mild dip around the time of restructuring. However, consistent repayments under the revised terms can help the score recover and settle. Credit scoring models are designed to observe patterns, not single events. 

How Long Does the Effect of Restructuring Remain on Your Report

Restructured loan details remain part of your credit history as long as the account is active and for a period even after closure, in line with CIBIL’s data retention practices. 

That said, the relevance of restructuring diminishes over time as newer repayment data gets added. Recent behaviour always carries more influence than older annotations. 

Steps to Minimise the Impact of Restructuring on Your CIBIL Score

The most effective way to manage the impact is consistency after restructuring. Timely repayments, avoiding additional credit stress during this period, and keeping overall credit utilisation balanced all help. 

It also helps to review your CIBIL report periodically to ensure the restructured status is reported accurately and reflects the revised terms correctly. 

How to Check Your CIBIL Report After Loan Restructuring

You can access your CIBIL report through the official CIBIL website and review the updated loan account details. Look for revised repayment terms, account status, and payment history entries post-restructuring. 

If anything appears inconsistent, you can raise a dispute directly through the CIBIL portal for clarification or correction.