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The year 2020 will forever be remembered as a year that changed the way the world operates. The impact of the pandemic was felt across the globe, including India. As citizens had to face the repercussions of the lockdown, many businesses were forced to shut down due to low business volume, resulting in delayed salaries and job losses. This caused concerns for many, including the salaried and the self-employed, especially when it came to making their EMI payments toward loans.


Banks and financial institutions often charge a late payment fee for missed and delayed EMI payments. The late payment fee may vary from one lender to another. At Bajaj Markets, a penalty fee of Rs. 1,000 is charged on missing a Bajaj Finance EMI payment and the penal interest rate levied on late payment is 2% per month. Missing EMI payments lowers your credit score and makes it difficult for you to avail credit in the future. Hence, it is crucial to avoid defaulting on loans to protect your credit score from dropping further.

Read on to understand your credit score and know ways to protect it.

Effects of Delayed Payment

The below table explains the period of delays and the impact of missed EMI payments on your CIBIL score.


Impact On Your CIBIL Score

0-30 Days

The CIBIL score will remain the same as credit bureaus will not have an update of the payment delays.

31-90 Days

Your score will drop significantly as credit bureaus will be made aware of the delayed or missed payment.

More than 90 Days

You will be viewed as a defaulter and your CIBIL score might fall at a quicker rate.

Types of Loans Affecting Your Credit Score

If you have taken out a personal loan, you are not required to pledge any collateral as security. So, defaulting on an unsecured loan could lead to a decline in your credit score. When you default on a secured loan for six months straight, the lender is entitled to seize your pledged assets. You might then be at risk of losing your asset, and your credit score might take a hit. Hence, it is crucial to avoid defaulting on loans and save your credit score from further harm.

Weightage of your CIBIL Score

  • Your credit repayment history accounts for 35% of the CIBIL score.

  • Credit usage represents your credit utilization ratio, which accounts for 30% of your score.

  • The length of your credit history, including the oldest and the newest, makes up for 15% of your CIBIL score.

  • The number of open credit accounts, as well as hard inquiries, account for 10% of your score.

  • A diverse portfolio of credit accounts and other credit products make up for 10 % of your score.

How to Pay off your Dues during the Pandemic?

  • Prioritize Payments

To protect your credit score, ensure you prioritize payments towards your loan accounts. If you've applied for multiple loans, clear loans with high-interest rates on priority. Doing so will contribute towards a good score, even during a pandemic.

  • Keep a Track of Your Credit Record

Monitoring your credit record is a simple exercise to understand your overall credit health. A CIBIL report check will help you determine the accuracy of the financial information mentioned in your report. It will also make you aware of any activity that could damage your credit score.

  • Try to Avoid Taking out New Loans

Taking out new debts will only add to your financial struggle and may cause a further dent on your creditworthiness. So, avoid taking fresh debt and cut down on unnecessary expenses to save money. Plan a tight monthly budget to clear your debts and keep some money aside for unplanned emergencies. However, in extreme situations, if you still require financial assistance, you can opt for a loan and use the funds as per your requirement.

If you require instant financing for any kind of financial requirements, you can apply for a Bajaj Finance Personal Loan at Bajaj Markets. The online personal loan application process is quick and requires minimal documentation. Now, you can avail an unsecured loan of up to Rs. 25 Lakhs at affordable rates. The repayment tenure on the Bajaj Finserv personal loan is quite flexible and goes up to 60 months. There is no limitation on the end usage of the loan funds, i.e. it can be used to fulfil all kinds of monetary requirements with ease. Moreover, you can also track the status of your loan online through the Bajaj Markets app.

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CIBIL Report

Ever considered quantifying your financial health in specific parameters, with the Credit Health Report on Bajaj Markets?


Given below are the pointers that will have a positive impact on your credit score.

  • Be disciplined with your credit payments

  • Get your credit report corrected in case of errors

  • Keep a low credit utilization ratio

  • Clear all your dues on time

  • Avoid applying for multiple loans in a short period

With CIBIL's Grievance Redressal Mechanism and Dispute Resolution Process, you can get a timely rectification of any errors in your CIBIL report. One can visit the official CIBIL website and fill out the online form with the required details and address the errors that need to be corrected. Getting your CIBIL errors rectified at the earliest will help you maintain a healthy credit history/profile.

To get your CIBIL error corrected, you can file a dispute online on the CIBIL website. CIBIL does not charge individuals anything for rectification of errors in the CIBIL report.

Once the dispute is submitted with CIBIL, it may take approximately 30 days to resolve it. The duration of the process will also depend on the time taken by the credit institution to respond.

Happy Customers of Bajaj Markets

Valene Gomes
Getting a loan to take care of my wedding and relieving my parents to enjoy the occasion was the best decision I ever made. Easy-to-apply, amazing interest rate and quick disbursal, what more can one ask for!
Vinamra Jain
I am passionate about the vehicle I drive. I want to protect it with the best available option. What amazed me was the full transparency, quick quotes and the attractive discount on the premium while choosing the annual payment option!
Shehnaz Patel
My husband and I will finally move into our own house this Diwali. All thanks to Bajaj Markets, with competitive interest rates, minimal processing fees and easy to repay EMIs, our dream saw the light of reality in no time!
Brijesh Mishra
Kids grow up fast and to fulfill their dream trip to Disneyland I had everything but instant funds. With no collateral or guarantor required and a hassle-free processing, I gifted my family a memorable trip to Orlando with just a click!
Chandni Arora
The best way to start looking for health insurance is to do a close study of the coverage needs and checking the insurance company's claim ratio. No unnecessary jargons, easy to apply claims process and choice of premia!
Anurag Pandit
I bought my first iPhone using my Bajaj Finserv EMI Network Card. Zero downpayment with a No cost EMI on Bajaj Finserv EMI store just made my day!
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