Considering the extravaganza of big-fat Indian weddings, adhering to a specific budget becomes challenging. Moreover, wedding expenses have significantly increased in the last few years. So instead of exhausting one’s lifetime savings in a wedding, opting for a marriage loan is an ideal option to meet these substantial expenses effortlessly.
As per reports of last year, during the second wave of the pandemic, around 33% of credits were acquired to meet wedding expenses.
Wedding loans are one significant variant of personal loans that comes with no spending constraints. Such an advantage makes it a popular financing option among borrowers. Read on to know more about such a financing option.
Reasons to Take a Personal Loan for Wedding
The availability of a marriage loan allows intending borrowers to plan a wedding in the way they want to without stressing about finances. Moreover, such a credit facility gives borrowers the advantage of celebrating weddings at exotic locations with a range of exclusive cuisines. Usually, consumers avail such loans from reputed financial institutions as they offer substantial credit at affordable interest rates.
Nonetheless, there are other highlighting features of personal loans that contribute to the popularity of this credit option. Such factors include:
Substantial loan amount
Before availing of any credit facility, it is always wise to check the amount one is eligible for. In this regard, intending borrowers can use a personal loan eligibility calculator to determine the loan amount they are eligible to acquire. Although the eligible amount for the applicant will depend on various factors and vary across lenders, it is always better to not over-borrow and applies for the exact amount that is required.
The flexibility of usage in terms of wedding requirements
Since a marriage loan does not come with any end-use or pre-condition, customers can use the funds to meet various wedding-associated requirements. For instance, such a loan can help you afford high-end accommodation for your wedding guests, book expensive hotels and include out-of-the-ordinary cuisine. Apart from that, you can also use the funds to purchase extravagant wedding costumes and make your special day memorable in every aspect possible.
Competitive interest rates
Opting for a marriage loan from leading financiers will allow borrowers to obtain funds at attractive interest rates and flexible terms. These interest rates may vary depending on lenders’ terms and conditions and borrowers’ repayment history and credit score. However, they can acquire funds at reasonable interest rates by paying off the loans on time, maintaining a certain percentage of credit utilisation ratio, not applying for multiple loans at a time, etc. These factors further increase the borrower’s credit score significantly.
Minimal additional charges
Usually, lenders levy certain pre-payment or foreclosure charges based on the borrower’s repayment structure. For instance, some lenders charge processing fees, thereby increasing the overall borrowing cost. However, if borrowers want to settle the marriage loan before the stipulated tenure ends, they can do that at a nominal charge.
Flexible repayment facility
Another significant benefit of a personal loan for a wedding is that there is no rush for repayment. Ideally, the best personal loan comes with flexible tenure options. Being a prospective borrower, you can choose your preferred repayment tenure to pay off the loan at your convenience. In this regard, you can also take the help of a personal loan EMI calculator beforehand to determine the EMI and overall interest outgo. This will further help borrowers maintain financial health and repay the loan on time without hassle.
Other than these benefits of a marriage loan, borrowers can also get the benefit of a Flexi-loan facility that ensures convenience in usage and repayment. This benefit will allow them to withdraw a certain portion of the sanctioned loan amount at their convenience and pay interest only on the used amount.
Eligibility Criteria and Documentation
Whether you use the loan amount for wedding purposes or fund any other requirements, meeting eligibility parameters is of paramount importance. Every lender specifies certain qualifying parameters to measure borrowers’ repayment capacity. Here are some essential eligibility parameters of a marriage loan that borrowers need to fulfil to avail of their desired loan amount:
Applicants need to be within the age bracket of 21-60 years during the time of loan maturity
One needs to maintain a CIBIL score of at least 750 or above
Applicants need to be self-employed with a stable business vintage or salaried with a work experience of at least 1 year
One should earn at least Rs. 15,000/month
Apart from meeting eligibility parameters, borrowers must submit certain personal loan documents to ensure a quick and hassle-free loan approval.
The documents include:
KYC documents
Residence proof
Bank account statements or salary slips for the last 6 months (salaried)
IT returns for last 2 years (self-employed)
Business ownership proof
Passport size photograph
Note that the list of documents may be indicative, and lenders may ask for additional documents during loan processing if required.
Applications Process of Personal Loan for Wedding
Applying for a marriage loan from renowned financial institutions will involve a simpler application process so that borrowers can get the funds as soon as possible. Once fulfilling the qualifying parameters and keeping the documents handy, borrowers can apply for the loan online by following the steps mentioned below:
Step 1: Visit your preferred lender’s website and open the personal loan application page.
Step 2: Next, applicants will be redirected to a page where they have to input basic information comprising personal and professional details.
Step 3: Select the desired loan amount from one of your preferred lending partners (based on eligibility) and also choose a suitable loan tenure to ensure quick approval.
Step 4: Submit necessary documents for verification along with the loan application form.
After verification, your loan amount will be credited to your account.
To summarise, every marriage involves certain planned and unplanned miscellaneous expenses. Thankfully, with the availability of a marriage loan extended by reputed financiers, borrowers can avail of necessary financial assistance to meet an array of wedding expenses effortlessly.
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