Wedding Loan: Eligibility Parameters to be Considered by the Lenders
Last Updated : July 3, 2016, 10:44 a.m.
Many of you will surely agree on the fact that at least once in a lifetime every individual looks forward to avail the personal loan for wedding. Yes, with the help of many reputed banks/NBFCs, one can easily avail this loan in order to fulfill his/her urgent need of financing the wedding. Moreover, wedding loan is an unsecured loan, thus does not require a collateral or security. But, in order to avail this loan, you need to fit into the eligibility criteria which varies from bank to bank.
But, before going for this loan, you should be ready at your end because with just a single negligence of yours, you can miss this golden opportunity to avail the loan. When it comes to offering the loan, different banks have different norms for eligibility. So,take a look at the below points to know about the parameters that lenders consider very strongly before sanctioning your loan amount.
Your Current Income
Before approving your wedding loan application, the first and foremost thing that lenders do consider is your present monthly income so as to know about your loan repayment capacity. However, lenders are also very interested in knowing the amount of debt that you are currently owning. Moreover, it is really very important for lenders to evaluate your debt-to-income ratio just to know whether you will easily repay the loan or not. Well, the lower this ratio is, the more chances are for you to create a good impression among lenders.
Employment Records
If you are having a stable employment history, it would be really great as you can easily avail the loan from the lenders. Before offering you loan, the lenders do check your employment records as they evaluate your job stability just to know whether you can repay the loan amount or not. Those who keep on switching their job, are not preferred by lenders as it would be difficult for them to have faith in such candidates.
Calculating Equated Monthly Installments (EMIs)
Moreover, as far as calculating equated monthly installments are concerned, it would not be wrong to say that they are calculated on the parameters of current income and various other monetary commitments. Well, in order to know your exact amount for EMI that you need to pay every month with respect to your financial sources, you need to either ask from the bank to do the same or you can use the EMI calculator to get the accurate results.
Your Credit Score
Before availing wedding loan, lenders do consider your credit score. Yes, you credit score needs to be high so that you can easily get the loan without any hassle. IF you are having a credit score of 750 or above out of 900, majority of the lenders will be more than happy to provide you with the wedding loan. Actually, the lenders will judge you on your potential of loan-repayment associated with your credit score. Whereas, those who are having less credit score should search for those certified lenders online who entertain the borrowers with less credit rating.
Sound Repayment Capability
If you have a bad repayment history ever in your life, be prepared because this thing can go against you. Yes, because lenders prefer such candidates who have a good repayment history. However, some other factors like age, utilization of money lent, relationship with the bank, etc also play a significant role here. Well, a good repayment capacity will automatically add more brownie points in your wedding loan application.