Marriage in itself is an expensive affair that involves a plethora of costs, ranging from bridal jewellery to trousseau. Moreover, in the peak wedding season, individuals experience a surge in prices of venues, catering and other relatable costs. At this time, to lower the financial burden, many reputed financial lending institutions offer attractive marriage loans at competitive interest rates.
What is a Marriage Loan?
A marriage loan is a type of personal loan that is mostly obtained to meet the expenses related to a wedding. Generally, this kind of unsecured loan covers the cost of purchasing jewellery, decorations, venue rents, guest accommodations, catering, etc.
As the nature of this loan is unsecured, lending institutions give more emphasis on the income and borrowing history of the customers.
What are the Advantages of Applying for a Wedding Loan?
An event like a wedding can bring unexpected expenses, leading to unnecessary stress and burden. Moreover, a themed or destination wedding attracts huge expenses due to its improvidence. In this scenario, obtaining a marriage loan from a credible lending institution can add great benefits.
Here are a few significant benefits of a marriage loan application:
- Hassle-free application process
Many reputed financial institutions offer online applications for personal loan that can be available within a few clicks. The hassle-free procedures of loan application include providing basic credentials like the name of a borrower, PAN and Aadhaar numbers, address proof, date of birth, etc.
Upon completion of filing this information, the representative of the concerned institution takes utmost care of the remaining paperwork.
- Zero collateral
Borrowers opting for personal loans for a wedding can enjoy the perks without the stress of any collateral. As this is an unsecured loan, borrowers are freed from keeping any valuable assets like commercial or residential properties as collateral.
Therefore, the only prerequisite for the seamless availability of wedding loans is maintaining a desirable credit score and overall credit history.
- Fast and convenient
In today’s time, obtaining a personal loan for a wedding has become swift and convenient without the elimination of lengthy loan application procedures. Borrowers need to maintain a healthy credit history to obtain quick loans before the big day.
In addition, the applicability of the online application procedure, which involves quick submission and timely approval, makes this type of loan worthy of a shot.
- Industry’s best loan interest rates
Borrowers can obtain a personal loan for wedding purposes at competitive interest rates, which is an advantage for newly-wed couples. Many financial lending companies offer personal loans at the industry’s best interest rate and extensive repayment tenure.
Moreover, these companies offer a personal loan EMI calculator, a digital tool which enables a borrower to get a fair idea about the applicable interest rate and future EMIs.
- Repayment in easy monthly instalments
Easy repayment of personal loans in the form of monthly instalments is available with renowned financial institutions. The obtainability of easy instalments helps borrowers plan their finances and reduces the burden of paying a hefty amount at a time to a great extent.
How to Apply for a Marriage Loan?
The application procedure for a marriage loan involves effortless steps. As numerous financial institutions are offering an online method of obtaining a personal loan, the basic steps involved are:
Step 1: Create an account in the online application portal of a reputed financial company.
Step 2a: If a borrower is a salaried individual, the documents required for submission include residential and identity proof, monthly pay slips, bank statements of the last few months, etc. In addition, some lending companies may request documents supporting professional experience.
Step 2b: If a borrower is a self-employed individual, he or she must present the income tax return documents and other necessary documents at the time of application.
Step 3: In the final step, a borrower applies for the loan amount after calculating the EMIs with the help of a personal loan EMI calculator.
Upon completing loan application procedure seamlessly, an executive of a respective lending institution will get back to a borrower. Moreover, this hassle-free procedure enables timely submission of loan applications and quick disbursal of the requested amount.
Factors to Keep in Mind while Availing a Wedding Loan
Though obtaining a marriage loan requires a few documents, a borrower should check few factors before making application. Here are the following factors to consider:
- Plan future EMIs for better financial control
Borrowers seeking marriage loans must use a personal loan EMI calculator to plan the EMIs. Generally, a lending institution checks that the total EMI payment is at most 60% of the borrower’s monthly income. Hence, checking this status prior hand will prevent the rejection of the wedding loan application.
- Borrow the necessary amount required to meet expenses
Applying for the loan amount as per requirement is pivotal, as over-borrowing can attract unnecessary burdens. Individuals applying for loans for marriage must diligently comprehend the budget to have a fair idea of the upcoming expenses. This will help to find out the actual money requirement and restrict borrowing unreasonable amounts.
- Go through the foreclosure charges applicable
It is quintessential to check applicable charges and penalties that can arise meticulously. Some of the prominent examples of foreclosure charges are processing fees, the penalty for prepayment or late payment. In addition to checking these charges, ensure that the plan comes with the facility of prepayment or part prepayment.
- Check your credit score before applying
The ideal credit score that lenders prefer while approving a personal loan is 750 or more. In addition, the lower debt-to-income ratio and healthy credit score of a borrower will elevate the chances of quick loan approval. Hence, keeping a tab on the credit score before applying for unsecured loans like wedding loan is crucial.
Marriage ceremonies are infused with a celebration of relationships and companionship, which attract a comparative amount of expenses. Hence, before opting for marriage loans, it is pivotal to maintain a balance between the actual finance requirements and desired wedding goals. As over-borrowing and overspending may lead to debt traps and never-ending EMI cycle, mindful application of loan amount is mandatory.