Weddings are special, but they can also be costly, from booking the venue to hosting your guests. A marriage loan can ease the financial strain. This guide breaks down the key details of marriage loans, their benefits, interest rates, and how to choose the right one for your dream wedding. This guide will inform you of the essential features of marriage loans, including types and benefits and determining the interest rate. In it, you will find the fundamental discussion of what you will require for any ceremonial expenses; to help you in getting the ideal personal loan for wedding that will cater to your wedding.
What is a marriage loan?
Marriage loan, as suggested by its name, is a personal loan usually taken out to bolster funds required for wedding expenses. They are unsecured and do not require collateral. Such loans are available from a majority of banks and NBFCs, along most online websites, owing to their ease of access.
Why choose a marriage loan?
Most have an idea about their fancy wedding but on the other hand have to live within a budget. That is why several couples go for a marriage loan.
Easy to Use: These loans can facilitate anything from your wedding attire and decor ordering to honeymoon bookings.
No Need to Put up Collateral: You do not have to put in any of your assets to get the loan.
Quick Disbursement: Getting access to funds is quite simple and usually takes around 1-2 days.
Flexible Repayment: Hence the loan is structured so that you can clear off your dues over a period of time without putting too much burden on you.
What are the most important features of a marriage loan?
Here are some unique features common to the marriage loan that can help with planning for the wedding:Â
The least amount a borrower can avail is ₹ 50,000 and a maximum of ₹ 2,500,000, all influenced by the qualification requirements of the applicant.
The repayment period varies between 1 and 5 years, whichever is preferred.
The applicable rates of interest on marriage loans range from 10% to 20%, depending upon the borrower’s credit rating history.
Potential Use of Marriage Loans You can utilize marriage loans in the following manner:
*Venue and Decor:* A beautiful venue with simple yet elegant decorations for your guests.
*Catering:* For sure, good food will cheer everyone up.
*Outfits and Jewelry:* There will be no trouble with buying wedding clothes and jewelry.
*Photography:* Hire a good professional to capture the moments.
*Honeymoon:* A sweet, quiet getaway with your spouse may strike as a trip.
Marriage Loan Eligibility Requirements
Regulations change with each lender, yet there are common requirements that nonetheless exist, such as:
Age: Between 21 and 59 years.
Income: Minimum of ₹15,000; maximum ₹25,000.
Credit score: If you are assessed at above 750, it should help you in raising the most favorable range.
Employment: Both employed and self-employed are eligible to apply.
Documents Required for a Marriage Loan
Have these documents ready for smooth processing of applications, such as:
*ID Proof:* You must carry Aadhaar, PAN, Passport or Voter ID.
*Address Proof:* Same as above but can also be a utility bill or rental agreement.
*Income Proof:* Salary slips, bank statements, tax returns, and many more can be the source of proof.
*Photographs:* A few recent passport-sized photographs.Â
Requirements for Marriage Loan
Keep the following documents handy for hassle-free application processes:
Proof of Identity– Aadhar card, PAN card, Voter ID, or passport.
Proof of Address- Same as above, but utility bills and/or rental agreements are acceptable as well.
Proof of Income- Salary slips, bank statements, tax returns are more than sufficient to serve your purpose of application.
Photographs- Some recent passport-sized photographs.
How to Apply For A Marriage Loan
Funding any event is easy and should raise no issues and here is how to apply for a marriage loan:
Compare Options- Take time to check lenders and the type of marriage loans offered together with interest rates.
Check Eligibility- Use online tools or calculative means to ascertain your eligibility for a loan.
Prepare Documents- Ensure you have all the necessary documentation.
Factors determining Marriage Loan Interest Rates
Economics is simple. The following few crucial determinants affect the marriage loan interest rate.
Credit Score- A good score tells the lender that one is likely to repay the loan. This almost always means you get a lower interest rate than others.
Income-The income must generally be adequate enough to allow for loan repayment. This can also factor into other recommendations for a better loan.
Loan Amount- Larger loans nowadays generally have larger than usual interest rates only slightly so.
Loan Repayment Tenures- A longer repayment term allows for a higher interest rate to ensure the return.Â
Best practices in acquiring a marriage loan
When you consider taking a loan, enlist these pointers.
Inquire for rates: It should not be a crime or something extremely wrong to canvas around for the interest rates on a marriage loan, investing extra time to win that battle.
An eye out for hidden processed fees: You check for any other costs-to-process charges, early payment fines, etc.
Arrange an affordable monthly payment: Grab an EMI calculator on the net and have a look at possible amounts for your monthly payment.
Go for reports: Choose another good performer with favorable reports.Â
Conclusion
A marriage loan rate of interest could be a good way to finance your dream wedding without emptying out your life savings. And by understanding the workings of loans, comparing lenders, and doing the repayments responsibly, you can concentrate on creating memories that will last a lifetime. Then what is the delay for? Go ahead and plan your big day while it takes care of the rest!Â
