720 Credit Score: Keeping It Steady Through a New Loan

720 Credit Score: Keeping It Steady Through a New Loan

A 720 credit score sits well above the Bajaj Finance Personal Loan criterion of 650 on the 300 to 900 CIBIL scale. A new loan changes your report in predictable steps, and 3 habits keep the score steady.
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In summary

With a 720 credit score, a new loan adds an enquiry and a new account first, then a monthly record of equated monthly instalments (EMIs). On-time payments build on the 720; a missed EMI pulls it down. A Bajaj Finance Personal Loan at this score is subject to income and verification, like any application.


  • The application adds one hard enquiry.
  • The new account itself is not a negative.
  • On-time EMIs add to your record each month.
  • Megha borrowed Rs. 1.75 lakh and set up auto-debit.

Holding a 720 and ready to apply? Check your loan offer with your phone number and a one-time password (OTP) → apply online → receive funds within 24 hours* of approval.

What happens to a 720 score when you take a loan?

Your report changes in stages, from the enquiry to a growing run of EMIs. The table shows each stage for a 720 credit score holder and what to do.


StageWhat appears on the reportWhat to do
ApplicationA hard enquiry is addedApply to one lender at a time
DisbursalA new loan account appearsExpected; it is not a negative
Months 1 to 6Each on-time EMI is reportedSet auto-debit for the day after payday
Months 7 onwardsA run of on-time EMIs buildsKeep card balances low alongside

Last updated: 24th October, 2026


Lenders update bureaus every 15 days, under a rule in force since 1st January, 2025. Each stage shows on your report within weeks.

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What can pull a 720 score down during the loan?

Three slips do the most harm to a 720 credit score while a loan is new. The table lists them, with a safeguard for each, so a 720 credit score holds.


RiskEffect on a 720 scoreSafeguard
A missed EMIReported as days past dueAuto-debit and a buffer of one EMI
A second application soon afterAnother enquiryWait until the loan is settled in
Card balances rising after the loanHigher card useKeep using the card lightly

Last updated: 24th October, 2026


A late payment hurts more than the new loan ever will. Protect the EMI date above everything else.

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Does a 720 score guarantee approval?

No. A 720 credit score meets the listed CIBIL criterion, but approval depends on income, existing EMIs, employer and verification. The score supports your application; it does not decide it alone.


Worked example: Megha in Bhubaneswar

Megha is 31 and works as a salaried telecom network planning engineer in Bhubaneswar, earning Rs. 64,000 a month. Her 720 credit score rests on 6 years of card use. Needing Rs. 1.75 lakh for a sibling's engineering fees, she took it at an illustrative 14.5% per annum and weighed the EMI at 24 and 36 months.


EMI = P × R × (1 + R)^N ÷ [(1 + R)^N − 1]. Here P = Rs. 1,75,000, R = 14.5 ÷ 1,200 and N = months.


TenureMonthly EMI (Rs.)Total interest (Rs.)EMI as share of salary (%)
24 months (2 years)8,44427,64813.2
36 months (3 years)6,02441,8529.4

Last updated: 24th October, 2026


Choosing 36 months eases the EMI by Rs. 2,420, at Rs. 14,204 more in interest. Processing adds up to Rs. 7,228. Megha took 24 months and set auto-debit for the day after payday.


What can delay approval: a CIBIL score below 650 or existing EMIs that take up a large share of your income. Names or addresses that do not match across documents, and more than one loan application in the same month, can also slow it down.


Holding a 720 credit score? With a Bajaj Finance Personal Loan, you can borrow Rs. 40,000 to Rs. 75 lakh, subject to eligibility. Check your loan offer with your phone number and a one-time password (OTP) → apply online → receive funds within 24 hours* of approval.

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What else is checked besides your score?

A 720 credit score clears the CIBIL criterion. A Bajaj Finance Personal Loan also asks that you meet the criteria listed below:


CriterionRequirement
NationalityIndian
Age21 years to 80 years.
Employed withPublic, private, or multinational companies (MNCs).
CIBIL Score650 or higher.
Customer profileSelf-employed or Salaried

*You should be 80 years or younger, at the end of the loan tenure.

Last updated: 24th October, 2026


Meeting these criteria does not guarantee approval, which depends on eligibility, verification and credit assessment. No collateral or guarantor is required.


You may need the following documents, subject to your profile and application:


Document categoryAccepted options
KYC proofAadhaar/ passport/ voter’s ID/ driving license/ Letter of National Population Register/ NREGA job card
Identity proofPAN card, Real-time image / photograph
Employment proofEmployee ID card, Letter of Allotment of Accommodation Issued by Employer
Income proofSalary slips — last 3 months, Bank account statements — last 3 months
OthersPension order, Utility bill, Phone bill, Piped gas bill, Property / Municipal tax receipt

Not every applicant needs every document. Confirm the final list of required personal loan documents during your application.

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How do card habits affect a 720 score during a loan?

Card use keeps reporting alongside your new EMI. The table shows how 3 card habits play out for a 720 credit score holder in the months after borrowing.


Card habitEffect on the reportBetter habit
Paying only the minimum dueBalance and interest growPay the full statement amount
Spending close to the limitShows stretched financesKeep balances well below the limit
Applying for a new card soon after the loanAnother enquiryWait until the loan is settled in

Last updated: 24th October, 2026


The loan and the cards are read together. Keeping both steady is what holds the score.

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When should you hold off on a new loan?

Even with a 720 credit score, a new loan is not always the right move. The table shows when to wait.


SituationBetter moveWhy
Applied elsewhere in the last monthWait 2 to 3 monthsAvoids stacking enquiries
Existing EMIs already highClose one firstKeeps repayments manageable
Need can be met from savingsUse savingsNo new account or interest

Last updated: 24th October, 2026


A strong score is simpler to keep than to rebuild. Borrow when the need is real.

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How do you apply with a 720 score?

You apply for a Bajaj Finance Personal Loan online in five steps:

  1. Check loan eligibility: Enter the required loan amount and repayment period, then click "CHECK LOAN OFFER".
  2. Enter personal details: Enter personal, financial and employment details to receive a personalised offer.
  3. Loan offer: Review the offer details and adjust the amount or tenure to suit the applicant's needs.
  4. KYC verification: Complete KYC and verify bank details.
  5. Talk to loan specialist: The application is submitted and an executive contacts the applicant about the next steps.

The process may differ for new and existing customers, and some customers may need to provide additional documents. Pick the tenure whose EMI you will never miss.

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Key offerings: 3 loan types

  • Flexi Hybrid Loan
  • Flexi Dropline Loan
  • Term Loan

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    You can pay interest-only EMIs for up to 36 months, after which, the EMI will consist of both, the principal and the interest. EMI is applicable only on the withdrawn amount.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Withdraw and prepay – no extra charges
    You can withdraw from your limit and prepay as many times as you want, without extra charges.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest on the loan amount you withdraw.

  • Flexi facility charges
    Flexi facility charges applicable based on your loan amount.

  • Amount disbursed in one go
    The entire loan amount is disbursed at the start.

  • Instalment pattern
    Fixed EMIs that cover both the principal and interest.

  • Flexi facility charges
    No Flexi facility charges.

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)

Will be deducted upfront from loan amount.

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:

  • Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount as on the date of full pre-payment

  • Flexi Term (Dropline) Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

  • Flexi Hybrid Term Loan: Up to 4.72% (Inclusive of applicable taxes) on the outstanding loan amount, as on the date of full prepayment.

Part Pre-payment

  • Up to 4.72% (Inclusive of applicable taxes) of the principal amount of Loan prepaid on the date of such part Pre-Payment.

  • Not Applicable for Flexi Term (Dropline) Loan and Flexi Hybrid Term Loan.

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.


Flexi Hybrid Term Loan:

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 feeUp to 1.18% p.a. (pro-rated daily till 31st March) (inclusive of all applicable taxes) of the loan amount
Credit guarantee scheme renewal feeUp 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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Frequently asked questions

The score

Keeping it

Is a 720 credit score good for a personal loan?

A 720 credit score is above the Bajaj Finance criterion of 650 on the 300 to 900 CIBIL scale, so it meets that part of the listed criteria. Approval also depends on income, existing EMIs, employer and verification. The score supports the application; the full profile decides the offer you see.

Your application is logged as a hard enquiry, with a modest effect on a 720 credit score, and the loan shows as a new account. After that, each on-time EMI adds to your record. Missed EMIs are what pull the score down, so set up auto-debit and keep a buffer of one EMI in the account.

Pay every EMI on time, keep card balances well below their limits and avoid new applications while the loan is fresh. Check your CIBIL report every 3 months for errors, and dispute any you find. These habits let on-time payments build on a 720 credit score month after month, through the full tenure.

Keep it. Closing a card removes its limit and can shorten your credit history, both of which can affect the score. Keep it open, use it lightly and pay in full each month. That steady card use sits alongside your EMIs as evidence of good repayment and supports a 720 credit score.

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Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.
For customer support, call Personal Loan IVR: 7757 000 000