Weddings are a big expense, especially in India. In India, Big Fat Indian Weddings are a common thing. Every man wants to make the best use of his resources to cover the expense of a wedding. The only obstacle in a big wedding is the lack of funds to cover the expenses of all the arrangements as there are a lot of expenses in a wedding. People on the other hand, spend their lifetime saving to cover a wedding expense in India. Apart from spending the lifetime savings, there are occasions when even the lifetime savings of a person are not enough to cover for all their requirements in a wedding. Wedding Loan is the solution for such problems. The only point of concern is you need to have a good CIBIL score in order to get approved for a wedding loan.
You can apply for a wedding personal loan to cover all your wedding expenses in order to make the wedding as per your requirements. A personal loan is easier to obtain for that matter because it requires minimal documentation and no security. It also gives you instant access to the funds to immediately cover your wedding expenses. However, planning your wedding expenses before applying for a personal loan is beneficial because the interest rate on a personal loan is influenced by the loan amount as well as the loan tenure.
Eligibility for a Personal Wedding Loan
There are certain parameters that you need to consider in order to get approval on your personal wedding loan. Some of those factors are as follows:
Age:- The applicant shall be within the age limit of 21 years to 68 years in order to get approval for his personal loan. Approving a loan application of an applicant who is outside this age group might be risky for the banks because banks do not find that the applicants who are outside this age group would be able to repay the loan amount. To make sure that the borrower would be able to easily repay the borrowed amount or the loan amount, banks tend to approve loans of the applicants within this age group only.
Employment:- Individuals like salaried, self-employed, retired, student, even homemakers can apply for a wedding loan. Although, a stable employment with a constant source of income is required for the banks to approve the loan applications. Moreover, personal loans do not have a provision that limits the usage of the loan amount. An applicant who applies for a personal loan can use the loan amount as per his requirement.
Maximum EMI:- The maximum monthly repayment installment that an applicant can choose is up to 60% of his Income. To determine that the applicant would not default on the monthly repayment or the loan EMI, the maximum loan amount that gets approval on the loan application is set up to 60% of the total income of the applicant. This not only makes it easy for the banks to make sure that the borrower would not default on the monthly repayments but also for the applicant. Because it makes it easy for the applicants to be able to easily repay the loan amount.
CIBIL Score:- Banks usually take into consideration a CIBIL Score of 750 or above in order to approve a personal loan or wedding loan application. Banks consider your CIBIL score before approving or rejecting your loan application to determine your creditworthiness. If you have a low CIBIL score and are applying for a personal loan then it can be due to various reasons. Banks verify your credit report in cases to check if you have ever defaulted on any loan previously or if you have any existing loans.
These are some of the factors that you should consider before you decide to apply for a wedding personal loan in any bank to make sure that you get approval on your loan application. The most important factor in order to obtain approval is to make sure that your CIBIL score is 750 or above.