People often avail a personal loan for wedding to cover various related expenses, from booking the venue and paying the caterer to buying jewellery and arranging the honeymoon. Personal loans are unsecured, which means you do not need to provide any collateral for availing them. This feature makes them all the more attractive for potential borrowers.
Due to their high demand, NBFCs have made marriage loan eligibility much easier than before. Anyone with a regular income and a good credit score can avail a personal loan within a matter of minutes. However, since these loans are collateral-free, you have to fulfil your lender’s eligibility criteria accurately to apply. We will tell you how you can improve your personal loan eligibility to get a marriage loan quickly and with better terms and conditions.
Eligibility Criterion for Personal Loan
Lenders have specific eligibility criteria that you have to fulfil while applying for their personal loan. For Clix Capital, you have to fulfil the following conditions:
- You must be between 25 and 58 years of age
- You must have a monthly income of at least ₹ 25,000
- You must be working with your current employer for at least 6 months
- You must have work experience in the current field for a minimum of 12 months
Apart from these, you must have a credit score of 725 or above to prove your creditworthiness. Lenders look at it to ensure that you are a responsible borrower and timely repay your loan EMIs.
Steps to Improve Your Marriage Loan Eligibility
These are a few steps you may take to improve your eligibility to get a personal loan for wedding.
- Ensure That Your Credit Score is 725 or Above Before Applying
Your credit score is a parameter that the lenders use to determine your capacity to repay the borrowed amount. To apply for a personal loan from Clix Capital, you must have a credit score of 725 or above. The higher the credit score you have, the better are your chances of loan approval with favourable terms and conditions.
So, before you apply for a personal loan, check your credit score and ensure that it meets your lender’s minimum requirement. If it is lower than that, wait to improve it first and then approach a lender with your loan application. You may improve your credit score by reducing your debt-to-income ratio, paying your bills on time, diversifying your credit profile, and keeping your credit utilisation ratio low.
- Do Not Apply for Several Loans at a Time
Many borrowers who need money apply for several loans at a time, hoping that they will get approval from at least one of them. However, this is one of the biggest mistakes you can make to destroy your personal loan eligibility. When several lenders pull out hard inquiries on your credit report simultaneously, you present yourself as a credit-hungry borrower and ultimately get your loan application rejected. Additionally, your credit score is reduced, making it even harder to get loan approval in the near future as well.
- Give a Gap of At Least 6 Months Before Applying for a New Loan
If you have recently taken another loan, you should not apply for a marriage loan without waiting for at least 6 months. Otherwise, your lender will doubt your repayment capacity and reject your loan application. If you have a few months to plan for your wedding, wait for some time before applying for a personal loan for wedding and improve your chances of approval.
- Choose The Right Lender
Since you will stay hooked with your lender for several years and it involves your hard-earned money, it is crucial to do your homework and compare lenders. It would help if you were careful by comparing them based on their loan amount, interest rates, repayment terms, processing fees and other charges, and customer service. Avoid unrealistic loan offers and use your discretion to make the right choice.
- Reduce Your DTI and Credit Utilisation Ratio
Your DTI or debt-to-income ratio should be low, which indicates that you are not dependent on your debt and can manage your EMI payments on time. A low credit utilisation ratio also means that you can manage your expenses within your monthly income and need minimal credit to get going. Lenders do not want to lend to borrowers who heavily depend on their credit to cover their planned or unplanned expenses. So, keep both of these ratios low to improve your personal loan eligibility.
Lastly, applying for a personal loan for wedding online at Clix Capital will ease your application process and speed up your loan approval. We offer personal loans of up to ₹25 lakhs that you can avail within 15 minutes* of application. Apply now and choose your convenient loan term from 12 to 48 months.
You can also reach out to us at firstname.lastname@example.org or call us at 1800 200 9898
* T&C Apply