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In summary
A CIBIL Score of 640 suggests that parts of your credit history may require improvement. Possible reasons include delayed payments, high card balances, repeated applications or limited credit experience. This does not automatically prevent you from obtaining a personal loan, but the available terms may be less favourable.
To improve your 640 CIBIL Score:
- Bring overdue EMIs and credit card payments up to date
- Reduce outstanding card balances in manageable stages
- Pause unnecessary credit applications while rebuilding your profile
- Check your credit report for incorrect or outdated entries
Improvement should begin with the issue that is having the greatest effect on your report. Addressing missed payments or heavy credit use can be more useful than opening another account.
How is a 640 CIBIL Score viewed?
A 640 CIBIL Score is considered fair. It shows that you may have some experience with credit, but your report may contain factors that make lenders more cautious.
This score may lead to:
- Closer application checks: Lenders may review your repayment history and documents in greater detail.
- Limited lender choice: Fewer institutions may be willing to offer an unsecured personal loan.
- Higher borrowing costs: The available rate may be less competitive because the profile carries greater perceived risk.
- A lower eligible amount: Lenders may restrict the loan amount to keep the proposed EMI manageable.
- Stricter approval conditions: Strong income and stable employment may become particularly important.
A score of 640 is not permanent. Identifying the factors behind it and maintaining cleaner account conduct can help move your profile towards the good range. Check your personal loan eligibility using your mobile number and OTP to understand whether an offer may be available for your current profile.
What else do lenders check beyond your CIBIL Score?
The score is only one part of a personal loan assessment. A lender may still consider an applicant with a fair score when other aspects of the financial profile show sufficient repayment ability.
The review may cover:
- Monthly take-home income: Regular earnings help establish whether a new EMI can be managed.
- Existing loan burden: High ongoing repayments can reduce eligibility for additional borrowing.
- Employment stability: Continued salaried employment or steady business activity may support the application.
- Reason for the lower score: A past issue that has been resolved may be viewed differently from an active overdue account.
- Recent banking conduct: Stable income credits and adequate balances may provide additional context.
- Requested loan amount: A modest requirement may be easier to assess than an amount that appears high for your income.
- Supporting documents: Complete and accurate documents can reduce delays during verification.
A strong current financial position may help, but it does not remove the need to address negative information in your credit report.
How a 640 CIBIL Score affects your personal loan
Obtaining a personal loan with a 640 CIBIL Score may be possible, although approval is likely to depend heavily on the lender’s risk policy and your repayment capacity.
The score may affect:
- Personal loan interest rates: You may be offered a higher personal loan interest rate than an applicant with a stronger credit profile.
- Approved loan amount: The lender may sanction a smaller amount to limit repayment risk.
- Choice of tenure: Available repayment periods may be structured around your monthly affordability.
- Verification process: The lender may examine income records and existing obligations more carefully.
- Offer availability: Pre-approved or premium personal loan options may be limited.
Avoid making several applications merely to find an approval. Each formal application may create another enquiry. Check your personal loan eligibility and consider only an amount that can be repaid without placing pressure on essential expenses.
How a 640 CIBIL Score can influence interest rates
A fair CIBIL Score can result in less favourable personal loan pricing because lenders may view the application as carrying a higher repayment risk. However, there is no fixed rate assigned to a score of 640.
Two applicants with the same score can receive different offers. Someone with stable earnings and no current overdue payments may be assessed differently from a borrower who has high card balances and several active EMIs.
Review the annual rate, processing charges and total repayment before accepting a loan. A lower monthly EMI may appear convenient, but a longer tenure can increase the total interest cost.
Understanding the main CIBIL Score bands
The CIBIL Score scale ranges from 300 to 900. These categories help lenders form an initial view of an applicant's repayment record before considering income and other eligibility factors.
| CIBIL Score range | Rating | What it means |
| 300-549 | Poor | The report may contain significant repayment problems, making unsecured borrowing difficult. |
| 550-649 | Fair | Credit may be available selectively, often with closer checks and less favourable terms. |
| 650-749 | Good | The profile may qualify for standard credit products, although offers can vary between lenders. |
| 750-900 | Excellent | This range generally reflects reliable credit behaviour and may support competitive loan options. |
A 640 CIBIL Score is near the upper end of the fair range. Moving above 650 can place your score in the good category, but improvement depends on the information reported across your credit accounts.
How to improve and stabilise your 640 CIBIL Score
Improving a fair score requires a clear order of action. Begin with overdue accounts and high balances before focusing on smaller adjustments.
You can work on your score by:
- Clearing overdue amounts and preventing further late-payment reporting
- Paying at least the required amount on every account by the due date
- Reducing card balances gradually instead of shifting debt between cards
- Keeping credit utilisation below 30% where possible
- Avoiding fresh loan and card applications for a period
- Checking whether repaid loans show the correct closure status
- Disputing balances, accounts or enquiries that do not belong to you
- Keeping older accounts open when they remain affordable and useful
- Planning EMIs around your income and essential monthly expenses
Credit improvement usually develops through several months of consistent behaviour. Focus on creating a clean recent repayment record rather than expecting an immediate rise after one payment.
Related links:
| 642 CIBIL Score | 650 CIBIL Score | 668 CIBIL Score |
| 676 CIBIL Score | 681 CIBIL Score | 694 CIBIL Score |
| 815 CIBIL Score | 732 CIBIL Score | 792 CIBIL Score |
| 794 CIBIL Score | 796 CIBIL Score | 812 CIBIL Score |
Key offerings: 3 loan types
Personal loan interest rate and applicable charges
Type of fee | Applicable charges |
Rate of interest per annum | 10% to 30.5% p.a. |
Processing fees | Up to 4.13% of the loan amount (inclusive of applicable taxes). |
Flexi Facility Charge | Term Loan – Not applicable Flexi Loans –Up To Rs 1,999 To Up To Rs 18,999/- (Inclusive Of Applicable Taxes) |
Bounce charges | Rs. 700 to Rs. 1,200/- per bounce “Bounce charges” shall mean charges for (i) dishonor of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonor of payment mandate or non-registration of the payment mandate or any other reason. |
Part-prepayment charges | Full Pre-payment:
Part Pre-payment
|
Penal charge | Delay in payment of instalment(s) shall attract Penal Charge at the rate of up to 36% per annum per instalment from the respective due date until the date of receipt of the full instalment(s) amount. |
Stamp duty (as per respective state) | Payable as per state laws and deducted upfront from loan amount. |
Annual maintenance charges | Term Loan: Not applicable Flexi Term (Dropline) Loan: Up to 0.295% (Inclusive of applicable taxes) of the Dropline limit (as per the repayment schedule) on the date of levy of such charges.
Up to 0.472% (Inclusive Of Applicable Taxes) Of The Dropline Limit During Initial Tenure. Up to 0.295% (Inclusive Of Applicable Taxes) Of Dropline Limit During Subsequent Tenure |
| Credit guarantee scheme fee | Up to 1.18% p.a. (pro-rated daily till 31st March) (inclusive of all applicable taxes) of the loan amount |
| Credit guarantee scheme renewal fee | Up to 1.18% p.a. (inclusive of all applicable taxes) on the outstanding loan amount as on April 01 of the subsequent Financial Year. *Renewal Fee to be collected only for 3 subsequent financial years. **If the Remaining Tenure is less than 12 months, the CG Fee in subsequent years shall be charged prorated. |
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