Personal loans are a kind of unsecured loan which makes it the best option to pay for unexpected expenses. Almost every other bank offers a personal loan for such expenses like wedding expenses, unexpected medical expenses and any other expenses. There is no limitation on how you decide to spend your personal loan amount. There are various factors like your CIBIL score that the lender looks upon after receiving your loan application.
Eligibility Criteria
Each lender has their own set of eligibility criteria for a personal loan for marriage. The basic eligibility criteria is decided by taking various factors into consideration. However, the standard eligibility criteria that remains the same throughout mostly all lenders is listed below:
Age:- The minimum age requirement of an applicant should be at least 21 years of age at the time of applying for a loan. However, in some cases the minimum age requirement of an applicant should be at least 23 years of age. Whereas if the applicant’s age, if the applicant is a salaried employee, should not exceed 58 years of age. But, in the case of self-employed applicants, the maximum age of the applicant should not be more than 65 years.
Income:- Generally, banks do not approve wedding loan applications if the applicant’s income is less than INR 15,000. Some banks can still demand a minimum income of INR 25,000. There
are some other features that might affect the income criteria.
Employment:- Salaried, self-employed individuals, and professionals can apply for a wedding personal loan if they meet the above mentioned criteria.
Job Stability:- The applicant is required to have a constant source of income but if the applicant is a salaried individual, he should have at least 2 years of working experience with one year with the current employer.
CIBIL score:- Banks prefer applicants that have a CIBIL score of 700 or above. Banks can however approve applications with a lower CIBIL score but it is likely that the interest rate on such loans would be comparatively higher than normal.
Loan Amount:- Banks determine the loan amount based on various factors like your repaying capacity, your CIBIL score, etc. The standard amount for a marriage loan can range anywhere between INR 5 lac. to INR 20 lac.
Documents Required
The list of documents required to apply for a wedding loan is mentioned below:
- ID and Address Proof like your Aadhaar card, PAN card, Passport, Voter ID, Driving License, Rent agreement, electricity or telephone bill, etc.
- Birth certificate
- Salary slips or Form 16 for salaried employees
- IT returns for the last 2 years with the company’s balance sheets and P&L accounts along with the bank statements for the previous 6 months.
- The above mentioned documents shall be attached with the loan application form of the bank.
Fees & Charges
The additional fees and charges may differ from bank to bank but below mentioned are a few fees and charges that almost every bank may charge while processing your wedding loan application.
Processing Fee:- Every bank charges a loan processing fee for processing any loan application. In case of a wedding personal loan banks can charge upto 6% of the loan amount as processing fee.
Late Payment Charges:- The charge imposed by the bank whenever you miss out on your loan EMI. This can vary from bank to bank. There are some banks that might not charge anything if you are late for just one EMI.
Foreclosure Charges:- Foreclosure charges are charged by the bank when you decide to pay off the complete loan amount before the end of the loan tenure. Banks can usually charge upto 6% of the loan amount as foreclosure charges.