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January 2021

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Personal Finance, Personal Loans

Everything you need to know about CIBIL Score

“ your credit score and credit report are two most vital aspect of your financial health”

Ever wondered after generously paying all the credit card bills, the last loan you took for buying the latest smartphone or your personal home loan, what are you getting in return?

Well, it’s a three-digit magic number that eventually helps you to get more credit in the future and enables the financial institutions in determining your creditworthiness and your ability to repay the loan. It’s called the “Cibil” score. Do you know that nearly 79% of loan applications are sanctioned only if the borrower has a CIBIL score of 750 or more, thus it becomes an important area of our discussion? In today’s article we’ll be talking about what exactly is a CIBIL score and why it is important for you to maintain a good credit score.

What is a CIBIL score ?

As discussed earlier a Cibil score is nothing but a three digit Number which ranges between 300- 900. It comprises of customer credit profile, credit utilisation, past unsecured /secured loans history and all such information that enables banks to inspect the credit worthiness of borrowers. Simply put in it’s a score which affects your future access to credit If you have a credit score more than 650 it is considered good on other hand a credit score in the range of 300-550 is considered as bad. Credit score that falls in this range means you will need to take serious measures to improve it. Having a bad credit score will not make you eligible to avail a loan or  even get a credit card.

History of CIBIL

CIBIL stands for “Credit information bureau of India” it was incorporated in 2000 under the guidance of Reserve Bank of India Siddique Committee. It is oldest credit information company India. Cibil collects and records the repayment of loans and credit cards by both individuals and companies. So next time you avail any credit facility from any bank, NBFC, credit card companies Cibil got you covered.

How is CIBIL score calculated?

Your credit score is influenced by your past credit repayments which comprises  35% of your credit score followed by your credit balance and  utilisation ratio which contributes 30% of whole score. Your new credit request and mix contributes nearly 10% Each and the rest 15% is length of your credit history. To make you understand things in better manner is  attaching below an image depicting the same ;

Difference between Credit score and credit report

Now I’m pretty much sure that you know what Cibil score is and how it is calculated. We have another term in the basket it’s called “Cibil report”. These two things go hand in hand where Cibil score is calculated by different credit companies using multiple parameters and is a numerical term whereas credit reports are documents that have detailed information about their credit history. Your Cibil score is calculated taking in CIR or credit information report. Credit report is generated by credit bureau and contains all your basic information like  PAN number, name, address, gender etc. and all your credit information like types of loans availed in the past, ongoing loans and their subsequent repayment timeline, loan/credit card defaults and loan settlement details.

Benefits of good Cibil score

Access to future credit

It is one of the first things that lenders look into when evaluating loan applications. Your ability to pay determines whether you’ll be eligible for credit or not. Generally credit score of 650 plus assures that you get personal or home loans without any difficulties.

Low interest rates

If you have a good Cibil score if let’s say 750 and more you can negotiate with the lender regarding less interest rate charged on loan since the score itself  ensures that you have a sound financial background and your possibility of defaulting on loan is less.

Chances of getting high Amount loan is substantially increased

Generally offering high amount of loans is risky for lenders so they make sure that they lend to the right people. High Cibil score enables you to get high ticket loans like home loans easily.

Your chances of getting long tenure loan increases

With a high CIBIL score you can get approval on longer tenures on your loans which in turn will makes your EMIs smaller. It can help you manage your monthly finances alongside your home and auto loans.

How to improve your cibil score?

Be punctual and make all your payments on time

In order to maintain good Credit score ensure that you do not have any outstanding bills and dues and if any ensure that you pay them instantly. Make use of  Auto debit facility provided by banks and institutions so that next time don’t miss any deadlines.

Use Credit wisely

There’s a beautiful quote “credit is a necessity for survival and balanced credit promotes growth” on the other hand excessive credit can prove to be disastrous for your financial health.

Balanced Mix of loans

Secured loans such as home and  loans, which are taken for creating additional assets, have a positive impact on your CIBIL score. On the other hand, un-secured loans such as car and personal loans may adversely impact your CIBIL score.

Evaluation and Monitoring of Credit report

Make sure you constantly check your credit reports on a monthly basis. Sometimes CIBIL may make mistakes when it comes to updating your records, incorporating incorrect information against your report, and delay in recording updates. Constant monitoring ensures that you rectify the errors without any delay.


If you want to get a high ticket loan that too at bearable interest charges maintaining a good credit score will definitely help you in getting that. Also, it ensures that in times of emergency you actually don’t have to struggle a lot since a good Cibil score means quick and easy approval of loans.

Personal Loans

How to get a Personal Loan?

‘‘A small loan makes a debt. A great one an Enemy’’ 

Whether to buy the latest gadget from the Apple store or planning a holiday tour to the Bahamas one needs to plan in advance and start saving few bucks before D-day and most of the time we usually face the problem of paucity of funds. Thereafter one starts researching various sources from which funds can be procured. In today’s article, we’ll be discussing one of the easiest and flexible ways of getting the credit that is “Personal loans” 

So before diving into the topic of how to get a personal loan one need to understand what exactly is a personal loan; 

In simpler terms, it can be described as one of the flexible sources of taking credit where usually no collateral and security is required. One gets quick access to funds and can manage his/her own financial plans in a better manner. Whether you want to buy the latest Xbox games or plan the interior decoration of your home you can take a personal loan and repay them with flexible repayment options. 

Worrying about vacations or wedding plans you can surely knock on the bank door for personal loans. Frankly speaking, you can opt for personal credit technically for everything like children’s school fees, buying expensive watches or shoes. They are one of the most common sources of procuring credit right now. 

How you can avail the benefit of Personal loan? 

So there are few steps that you need to fulfill before applying that include your age criteria, financial status, current employment, work experience, and a lot more. Below are mentioned a few points that you need to remember next time you approach any bank for a personal loan application. 

Age Criteria 

Generally, the minimum age to go apply for the loan is 21 years but this isn’t uniform across all banks many banks require you to have a minimum age of 23 years. 

Loan Amount 

The loan amount can vary anywhere between 1 lac to as high as 75 lacs offered by HDFC bank. But some banks restrict the maximum amount to 25 lacs. The benefit of this facility is you don’t have to worry about day to day expenses during bad times with fewer compliances you can opt for personal loans even below 1 lac Rupees. 

Monthly Income 

Lenders are willing to give you if you have a stable monthly income or you are working for a reputed organization since that ensures your credibility and financial background. Certain banks require you to have ₹15000 pm to be eligible for applying. 

CIBIL Score 

Every time you fulfill your loan obligation your creditworthiness is improved thus your CIBIL score. It ranges between 300-900 points. If you have a credit score more than 650 it is considered good on other hand a credit score in the range of 300-550 is considered as bad. Credit score that falls in this range means you will need to take serious measures to improve it. Having a bad credit score will not make you eligible to avail a loan or even get a credit card. 

Work Experience 

Normally for salaried individuals, the requirement is that they need to be Employed at the current company for at least 6/12 months, and for individuals who are Self-Employed should be associated with a Business that is having a tenure of at least 3 years (continuous) Or ITR of last 3 years. Now that you have fulfilled all the eligibility requirements for your personal loan the next step is the what documents one requires to apply for a loan, 

Documents required 

  • Identity proof (copy of passport/voter ID card/driving license/Aadhaar) 
  • Address proof (copy of passport/voter ID card/driving license/Aadhaar) 
  • Bank statement of previous 3 months (Passbook of previous 6 months) 
  • Two latest salary slip/current dated salary certificate

From where to take loan? 

After you have collected all the documents and you fulfill all the requirements the next step is to actually search for the bank that gives the best deal in the Market. I’ve attached the latest interest rate charges by top banks in India below 

But wait there’s a tedious process involved in taking loans from banks. Firstly you need to visit the nearest branch of your favorite bank, do all the manual paperwork, afterward the bank will check your creditworthiness and the story continues. You probably have to wait couple of days for sanction of your loan application and the processing fee charges which are as high as 6%. 

And here MoneyLoji comes into the picture, it aims to fulfill the gap between potential lenders and borrowers. Speed and accessibility in offering loans with strict credit underwriting models make it a very different platform from traditional bankers and an outdated process of availing loans. 

MoneyLoji is India’s first digital platform aggregator of all financial products for salaried, self-employed as well as MSME enterprises. It offers the Fastest solution to financial products in a secure environment within 8-10 minutes 

Imagine getting a loan application within Such a short span of time. So next time you think of availing personal loan think MoneyLoji because “when time is money we got you covered”. 

Personal Finance, Personal Loans

Precautions while taking Personal loans

 “Quick to borrow is always slow to pay”

Credits economic times

In Earlier times the process of taking loans from banks was quite tedious and people actually thought twice before applying for one, but nowadays with improvement in technology personal loans can even be taken from the comforts of your home via internet banking or through personal loan apps. With such ease and comfort comes great confusion and risk of falling into a debt trap. So one needs to be very careful while opting for personal loans and with due diligence do every research on repayment schedules, interest charges, and much more. In today’s article, we’ll be talking about the precautions one needs to take while taking a personal loan so let’s begin

Personal loans

A personal loan is like any other loan where the borrower opts for credit for any purpose like a child’s school fees, buying the latest gadgets, or for your wedding plans. If you want to know more about personal loans, eligibility, sources you can check our previous blog by clicking here

Anyways in comparison with any other form of a loan, it can be arranged quickly, interest charges are less, all the formalities can be done online and you’ll get funds credited to your bank account within two to three working days. But with such benefits young professionals and employees are lured in only to pay a large chunk of their monthly salary as EMIs later on.

Understand you financial background and current loan obligations

One should before making any personal loan application be very sure of the current EMI installments and whether he/she can afford to take a loan. Generally, people do undermine this and later on face cash crunch as more loans will lead to a large part of your income going for regular monthly installments.

Make sure you have good credit score

It is one of the first things that lenders look into when evaluating loan applications. Your ability to pay determines whether you’ll be eligible for credit or not. Generally, a credit score of 650 plus assures that you get personal or home loans without any difficulties. Want to know more about CIBIL Score, its importance, and how to maintain a good Cibil score do check our previous blog by clicking here.

Understanding whole processing and Interest cost associated while talking up loan

There are few costs involved while availing of personal loan facilities like one-time processing fees, late fee charges, penalty charges. Before applying for a loan make sure you check and compare all these costs among the top lenders and make a rational decision.

Don’t go for flashy and eye catching offers

Does that zero cost interest program looks lucrative beware there might be hidden cost involved in it!

Sometimes lenders offer a floating rate of interest that at one time might seem to be very affordable and lucrative but can substantially increase over a period of time and can put you in real trouble finding a lender who is aim is transparency and smooth experience. MoneyLoji is a  unique digital marketplace in which the products which are available for applying will be processed and approved or sanctioned or issuance happens within 24 hrs time. So you get the best deals and offers by top banks and NBFCs and that too at NO hidden cost.

Always opt for personal loans in emergency situations

The newly launched car that you saw last weekend in the car showroom or you want your hands on the latest sneakers as I mentioned you can take a personal loan for any of your needs but taking one should be your extreme option.  This is because, after credit card loans, personal loans are the most expensive loans that are available in the market. Struggling with credit card bills or your child’s education expenses you can surely apply for a personal loan but if you’re planning for buying any depreciable item like a car, laptop then my friend you are really playing with fire. I mean I’m not saying it’s a bad option but taking a loan for items that will lose the greater part of the value on the purchase itself is quite risky if you believe you’re not financially sound and repayment of the loan might be a burden on your existing income. Take loans for building assets, not liabilities.


It might seem very easy to opt for a personal loan that can rescue you from your financial obligations but make sure to use this one with the utmost care. Personal Loans are one of the best financial products available in the Markets but things can go wrong if you don’t plan in advance and take some of the necessary precautions mentioned above. But don’t worry we are here to enlighten you with all hacks and tips that enable you to manage your finances well so stay tuned.

Personal Finance, Personal Loans

Personal loan or credit card what is best for you?

Nowadays it is quite easy to opt for credit facilities , One can take any  type of loan depending upon the purpose behind it. Whether to buy new house or latest gadget from apple store it can be accessed with ease. The Real question is should you opt for taking loan from a bank or avail credit Card facility since both of them fulfils your needs  

In today’s article we’ll be talking about whether should we avail personal loan or take credit card facility when we need funds So let’s begin 

What Exactly is personal loan facility? 

 It can be described as one of The flexible sources of taking credit where Usually no collateral and security is required. One gets quick access to funds and can Manages his/her own financial plans in a better Manner. Whether you want to buy latest smartphone or repay your children school fees you can take personal loan and repay them With flexible repayment options.

Usually you can borrow huge funds with help of personal loans and the funds can be borrowed for long tenure.

What is Credit Card and  how’s it different from personal loan?

 It is a plastic card having a magnetic strip, issued by a bank or business authorizing the holder to buy goods or services on credit. Credit card is Issued by financial institutions like banks and It gives  customers a pre-set credit limit which he can use to pay for his purchases without having to pay in cash or issuing a cheque. Let’s say you swipe your credit card for monthly grocery purchases your account accrues a balance that must be paid off each month that is you need to pay that amount next month.

Whenever banks issue a credit card there is pre-defined limit on maximum amount one can avail through this facility. When you have a high limit for the credit card, it allows you to spend more and this will help your credit scores

What is the minimum eligibility for getting personal and credit card loans?

Age Criteria

Generally the minimum age to go apply for loan and credit card Is 21 years but this isn’t uniform across the all Banks many banks requires you to have Minimum age of 23 years.

Minimum income criteria 

You should have minimum monthly income so as to qualify for both personal and credit card loan. Mostly Banks requires you to have ₹15000 pm to be Eligible for applying for a personal loan on other hand the amount in case of credit card loan is ₹25000 in case of top lenders. 


 Banks are willing to give you loans if you have stable Monthly income or you are working for a Reputed organisation since that ensures your Credibility and financial background. Both in case of credit card and personal loans Normally for salaries individuals the Requirements is that they need to be Employed At current company for at least 6/12 months And for individuals who are Self-Employed Should be associated with Business that is Having tenure of at least 3 years. 

Now the real question which is the best source to take credit from? 

To Make you understand things in simpler manner I’ve elaborated all the key aspects into different parameters 

  1. Time Consuming

Incase of personal loans since lot of documentation like nationality and income proof is involved it is a long and tedious process on other hand application process in credit card is quite fast as there is less documentation involved. 

  1. Interest Rates 

This is where the real difference is interest rate charges on personal loan ranges from 13%-22% and interest rate can be restructured and there is  a Reducing balance option not like credit cards where interest charges is between 12%-18 and it’s a flat rate of interest. 

  1. Loan Duration 

Loans on credit card can be borrowed for shorted period of time let’s say 1 month  on other hand for personal loans it has fixed duration of 12- 48 months. 

I’m attaching a table below summarising all the key differences between the two ;

When should you Apply for credit care?

  1. When you can easily repay the amounts in 30-45 days.
  2. When you have good credit card limit and you can easily do big ticket purchases.
  3. Let’s say you’re not eligible for personal loans and are in urgent need of funds.
  4. Want to buy gadgets online? Credit card are best way to go

When should you apply for personal loan?

  1.  The benefit here is you can repay the amount in long duration.
  2. When you’re planning to buy tangible assets like Car or any other expensive items.
  3. When you need funds which are beyond your credit limit but you meet all the necessary criteria to avail loan.


Both personal and credit card loans are at par with each other. It really depends upon your credit profile and need of funds to determine which one is clear winner among both of them but wait! 

No matter what you need MoneyLoji has a solution for you be it any loan with a flexible repayment option and the lowest interest rate across the whole market so apply for a personal loan Now! 

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