For what reasons you should apply for a wedding loan?
Marriage is the start of your new life. It is a commitment between two individuals who plan to spend their lives together forever. Besides that, it is also an opportunity to form ties between two families. It is a “once in a lifetime” experience and must be the most special experience of one’s life.
Marriage season is around the corner and so is the excitement for the festival.
With that being said, there will be a huge amount of financial requirements to finance a wedding, whether you want it to be celebrated in a destination or plan for an exotic location nearby. To fulfil all the monetary needs starting from booking a destination and managing dines to buying clothes, jewellery, and gifts, you might need a wedding loan.
In case you already have the issue of repaying multiple loans, you can merge them and convert them into a consolidation loan which will help you manage all of them conveniently. In today’s article, you will know about wedding loans, their features and benefits, and the reason why you should go for them.
What is a wedding loan and for what purpose is it taken?
A wedding loan is nothing but a personal loan applied for covering your wedding expenses. As you can avail of a personal loan to cover all your requirements, similarly, you can do the same to meet your wedding requirements.
In recent times, many Banks and Non-banking Financing
Companies have altered the loan from a personal loan for weddings to “Marriage Loans”. In case you already have multiple debts, you can convert them into a consolidation loan and pay the interest of all these loans altogether through a single instalment.
What is the eligibility to get a wedding loan in India?
- Age :
You must have at least covered 21 years of age and must be less than 60 years to apply for a wedding loan.
- Type of employment:
You should either be a salaried individual under select private limited companies and public sector undertakings or a self-employed individual having a minimum income requirement.
- Work experience:
For salaried individuals, the minimum requirement of work experience to avail of a wedding loan is about 2 years and in the case of self-employed individuals, it is about 2 to 4 years.
- Income:
All the applicants must have a monthly income of about INR 25,000 per month to be able to apply for a wedding loan.
- CIBIL Score:
Since it is a subcategory of the personal loan, you need to have a CIBIL score of about 750 or more to avail of a loan for the wedding.
What documents are required to apply for a wedding loan?
Here is the list of documents you need to show to your lender before applying for a wedding loan.
- ID proof: You have to submit your Aadhaar Card, Voter ID Card, PAN card, Driving License, Passport, etc. as the source of your income proof.
- Address Proof: You need to show your Voter ID card, Residential Certificate, Utility bills, etc. as a source of your address proof for being able to apply for a wedding loan.
- Income Proof: You have to show your salary slips, your bank statements, your credit card bills, your ITR, etc. as proof of your income.
- Loan Application Form: You, as an applicant, have to fill up your application form with correct details, annex your recent photographs and submit it to your lender along with the list of documents.
What are the reasons why you should opt for a wedding loan?
There are multiple reasons stating the importance of a wedding loan and they are:
- Flexible Repayment Plan:
Getting a loan for a wedding gives you a flexible repayment plan which is a huge benefit. A flexible repayment plan reduces your financial burden while paying your EMI. For example, if your lending institution gives you the option to go for a “Flexi” loan option, then you only have to pay the interest on the amount that you utilise on your wedding, instead of paying for the whole amount.
- Competitive interest rates:
Since wedding loans are widely applied by many borrowers across the country, the interest rates have significantly come down. The interest rates that most banks charge are between 10 per cent per annum to 25 per cent per annum. These interest rates depend on your credentials, like your loan history and credit history.
- Higher loan amount:
Since weddings are a big event that has a huge financial demand, you might need a higher loan amount to finance and manage everything effectively. In that case, many banks provide up to 40 lakhs as the loan amount to the borrowers. If you already have the tension of managing other debts, you can opt for a consolidation loan to pay all the instalments in one instalment.
- Upfront Payment:
Many times, weddings require you to make upfront payments to different suppliers and retailers for different items and gifts. In that case, a personal loan for a wedding can be very handy to cover different expenses related to venue, decoration, cuisines, etc.
- Reduces stress during the wedding day:
On the special day of your wedding, you have to make sure that everything is right in its place and that every plan is carried out effectively. And for that, you need ample finance to meet all the requirements and have some extra money for emergencies. In that case, a wedding loan is ideal for conducting marriage events, you can apply for them in hours, and get access to the funds within minutes.
Summing it up
You should consider applying for a wedding loan if you are short of funds to finance your marriage. A wedding loan can help you cater to all your marriage-related expenses at a lower interest rate. However, you should not take a huge amount, unless you are eligible to pay that amount with interest as it will add more financial burden. In case you have many debts and it is difficult managing all of them, you can apply for a consolidation loan. It will help you convert everything into a single instalment.
You can use a wedding loan calculator to compare different offers and check what interest rate suits you the most. If you want to apply for a personal loan and want a lower interest rate with a pocket-friendly EMI option, you can apply from Piramal Finance.