When a loan closes, your report shows it as closed, and your mix of active accounts changes. Any small score drop at that point reflects the change in active accounts, not a penalty for repaying. Keep paying other loans and cards on time after closure. Your closed loan stays on your report as a record of full repayment.
Worked example: Shalini in Navi Mumbai
Shalini is 36 and works as a salaried logistics manager in Navi Mumbai. She earns Rs. 82,000 a month. Her score fell from 781 to 743 after one EMI went out late and her card balance spiked, a score drop she traced on her report. She set up an auto-debit and paid the card down. Before her next loan of Rs. 2.6 lakh, at an illustrative 15% per annum, she compares 2 tenures.
EMI = P × R × (1 + R)^N ÷ [(1 + R)^N − 1]. P is the loan amount in rupees, R is the annual rate divided by 12 and by 100, and N is the tenure in months. The formula spreads the principal and interest into equal monthly payments, so early EMIs carry more interest and later ones more principal. All figures are rounded to the nearest rupee.
| Tenure | Monthly EMI (Rs.) | Total interest (Rs.) | EMI as share of salary (%) |
|---|
| 36 months (3 years) | 9,013 | 64,467 | 11.0 |
| 48 months (4 years) | 7,236 | 87,328 | 8.8 |
Last updated: 22nd October, 2026
The 48-month option lowers the EMI by Rs. 1,777 but adds Rs. 22,861 in interest. The processing fee on Rs. 2.6 lakh is up to Rs. 10,738. Shalini picks 36 months (3 years) and keeps the auto-debit to avoid another score drop.
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.
Recovered from a score drop and ready to borrow? 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.
