Couples who are looking forward to getting married have the endeavour of making their marriage a memorable one. There are various types of weddings like destination weddings, royal weddings, cruise weddings, theme weddings, etc. As we all know, even a normal wedding can be heavy on the pockets of the person who is funding it. If you desire an extravagant wedding, you might need to have a good financial backup for the same.
You can arrange the finances for your wedding by applying for a personal loan for the wedding from the banks or NBFCs. Taking a Wedding Loan means the proceeds from the loan can be used to cover the wedding-related expenses. These loans are easy to apply for and are mostly unsecured loans as no collateral is required for the approval of the loan.
As they are unsecured loans, the things that you need to consider while applying for a personal loan are credit score, banking history, and debt-to-income ratio. Unsecured loans involve risk for the lender as they provide the loan to the applicant without security interim. The credit score of the applicant is the most important document as it ensures the repayment capability of the loan by the applicant. The ideal credit score for the approval of a loan by the banks is 750 points. If you have a credit score below that the banks might not approve your loan. People with a lower credit score can avail a loan through the Non-Banking Financial Companies (NBFCs), which are more flexible when it comes to credit score.
Your income plays a vital role in getting your loan approved. As personal loans are unsecured loans, the income of the applicant is the basic eligibility criteria for the loan approval. The monthly instalments for the loan can comprise up to 33 percent of the applicant’s monthly income. Hence, the monthly income should be proportionate for the deduction of the EMI. If you have a higher monthly income, you can apply for a higher amount of loan.
There are other factors which determine the eligibility of the applicant. The lender, apart from credit score and income, also checks the employment history, bank statements and proof of wedding if you are availing a personal loan for a wedding.
●Job history: While applying for a personal loan, the lenders examine the job history of the applicant. To ensure that you have a stable job, the lender may ask you for the income proof like salary slips or employment letters. You need to have a job history of minimum 3 years to get your loan approved. If you are self-employed, your business needs to be running for a minimum of 5 years.
●Bank statements: The lenders ask for the banking history of the applicant to approve the loan. The bank statements should be 3 to 6 months old and should have running transactions. A clean and active bank account, which has none or few returned cheques, has better chances of getting the loan approved.
●Wedding proof: Very rarely does a lender ask you for proof of your wedding. In cases where your lender is concerned about the purpose of the loan and if you have not produced documents according to the lender's requirements, the lender, instead of rejecting the loan, will ask you to submit proof of the wedding. The basic form of wedding proof can be a wedding card, which can be shown to the lender for loan approval.
Unsecured Personal Loans can make your dream wedding a reality. You just have to choose the right lender and an appropriate amount while applying for the loan.