A wedding is a special occasion for you. It is the time when your friends and family come together to celebrate a memorable occasion that would be cherished for a lifetime. However, with the advent of the wedding loan, you can have a hassle-free dream wedding experience you can remember for eternity.
What is a marriage loan?
Wedding or marriage loans are a type of personal loan available to fund all your wedding-related expenses. Once you meet the required eligibility criteria, check the loan EMI calculator for the interest rate for personal loans. Then, you can apply for a loan online or offline by choosing the appropriate tenure.
Why should you opt for a marriage loan?
Here are some reasons why you must consider a marriage loan:
- You can use the loan for any cost without any restrictions from the lender, and it is suitable for any type of wedding that you want to have.
- It is easy to avail of this type of loan, meeting the eligibility criteria within a few hours in a few steps without requiring paperwork.
- You can schedule your EMI installments as there is a lot of flexibility in these personal loans. Additionally, you can apply for any amount you wish to borrow.
- With a healthy credit history, you can get the loan at the lowest personal loan interest rate, which you can repay earlier and become debt free. Also, if you consistently repay the EMIs on time, it boosts your credit score and creates a positive credit history.
- Your assets, savings, and investments are preserved in this loan variety, covering all your wedding costs.
- You get a repayment tenure of up to 5 years, and you can choose the repayment term according to your capacity so that the loan is manageable.
- This loan type is security and collateral free to the lender. You can apply by providing your personal and professional details so that you don’t need to worry about the pledge between you and the lender.
- You can now have your investment goals intact going for a wedding loan without redeeming your mutual fund of fixed deposit investments.
- Most lenders don’t charge a prepayment fee if you wish to repay the loan from the cash presents you accepted from your friends and family.
Pointers to note before applying
So you’ve finally decided to apply for a marriage loan! But before applying, keep the following attributes in mind:
- Rate of Interest: It gets charged upon disbursing the loan amount into your account. And it usually ranges between 11.99 and 36% p.a; depending on your income, credit score, loan amount etc. So compare loan options from different lenders to get an affordable interest rate as it directly affects the overall cost of the loan.
- EMI: Calculate the EMI beforehand to know whether you can pay the loan on time without any hassles in the repayment tenure. You can find this calculator tool in many lenders or third-party websites.
- Loan Amount: Before applying for the loan amount, check your financial requirements and then borrow the required amount because the higher the loan amount, the heftier the EMIs.
- Tenure: Ensure that you choose a term that is short enough. This is because you might pay more than the lowest personal loan if you choose a longer tenure.
- Lender authenticity: Check the online reviews, customer care channels, and the lender’s prompt response to your query and other mediums.
Eligibility for securing a marriage loan
The criteria differ across lenders and applicants based on their income, financial status, and age. However, these are the standard eligibility factors:
- Age: 21 to 60 years
- Monthly income: Rs. 20,000 to Rs. 25,000 (depending on the city and other factors)
- Employment type (Salaried & Self-employed): At least two years of uninterrupted income (salaried). It is a minimum of two years in continuous business for self-employed applicants.
- Credit score: A score over 700 to avoid higher interest rates.
You can start researching the various wedding loan choices available for your upcoming wedding. Keep your savings for better investments and use these loans for hassle-free wedding ceremonies.