Methodology
How the score is calculated
SmartCredit Ai uses an interpretable, weighted scorecard inspired by how machine-learning credit models rank risk factors — but every weight is visible.
| Factor | Max points | What it measures |
|---|---|---|
| Repayment history | 180 | On-time payment % minus penalties for 90+ day defaults |
| Existing debt burden | 120 | Share of income already going to EMIs |
| Income level | 90 | Monthly net income (diminishing returns) |
| Employment stability | 90 | Employment type and years in current work |
| Credit history length | 40 | Years since first loan or card |
| Alternative data | 80 (120 if thin file) | Utility, rent, digital transactions, savings habit |
Score & category
Points are scaled to 300–900.
- 750+ · Excellent
- 650–749 · Good
- 550–649 · Fair
- Below 550 · High Risk
Loan eligibility
Uses FOIR (Fixed Obligation to Income Ratio): the share of income allowed for all EMIs.
- Excellent 55% · Good 50% · Fair 40% · High Risk 30%
- Max EMI = Income × FOIR − existing EMIs
- Max loan = present value of Max EMI over tenure
- Fair / High Risk add +1.5% / +3% risk premium