Wedding planning is one of the happiest events. Sometimes, it might turn out to be really pricey. Most individuals look for a marriage loan to meet such expenses. Even though marriage loans are really beneficial, applications tend to get rejected for some minor mistakes. If you want to get money on time, be really cautious. This article will tell you about common mistakes to avoid, and how to get cibil score free online marriage loan application.
Table of Contents
Ignoring Your Credit Score
One common blunder is failing to check your credit score prior to applying for a loan. A credit score is a three-digit number indicating whether a bank considers you a trustworthy borrower or not. A low score would mean the bank suspects you’ll be a defaulter and won’t repay them. That causes automatic disqualification at once. To steer clear of it, it is best to check your CIBIL score, free online marriage loan application status at least a month before when you actually require funds. You can do this free of cost on most websites, such as CIBIL, once a year or through a lending application. Ensure a score of 750 and above for optimal interest rates.
Applying To Too Many Banks
When people are short on time, they tend to apply to five or six banks simultaneously. It is not a good practice. Each time you apply for money, they perform a “hard inquiry” on your credit report. It is not good when they see multiple hard inquiries in a short period. It gives people the idea that they are desperate for money. Also, It results in lowered credits as they become nervous. Instead, people should apply to one or two places only after doing their homework.
Giving Wrong Information
Small errors in your application may lead to big waits. Typos in your address or your PAN card number are the reasons that may lead to disqualification. Banks check all the details you have entered. If the name on your pay slip fails to meet the criteria on your Aadhar card, they will immediately withhold the process will be withheld immediately. It is always important to check your application before you click the submit button. Your documents must be clear and updated.
Overestimating Your Repayment Ability
It is easy to get carried away with “destination wedding” planning and ask for a huge loan amount. Banks, however, calculate your “Debt-to-Income” ratio. They assess how much of your income goes towards paying off debts every month. Even if you already have other EMI payments and your new loan garners more than half of your income, the bank will probably give you a “no” for an answer. Don’t get too ambitious and ask for too much money if you know you will have difficulty paying it off every month.
Not Reading the Fine Print
Often, borrowers focus only on the rate of interest and do not consider other charges. Processing fees, insurance, and late payment charges are common with marriage loans. There might also be charges from certain moneylenders if you attempt to pay off the loan earlier than the agreed time. Always read the fine print when obtaining a marriage loan.
Also Read: How to Use a Roth IRA Contribution Calculator to Plan Investments