Are you planning for marriage? Do you want a good amount of funds to sponsor your wedding/ the best way to fulfil your dream is to avail a personal loan. In India, a wedding function generally involves a lot of rituals with many distant relatives. Indian weddings are described as the most grand wedding celebrations. You need to have a sufficient fund to finance each event. What should be the budget for your wedding? A personal loan helps you in financing all the events for your wedding.
You can avail a personal loan either to finance few events or the entire wedding. The personal loan will cover all the required expenses like catering, venue, photography, dress, decoration etc. you do not have to worry about any expenses and plan your wedding lavishly.
A personal loan for marriage, therefore, can be a good option for managing your expenses. These type of loans are called as marriage loans. Such loans can be easily availed as it is offered by most of the lenders. Such loans are not difficult to be availed and it requires less documentation to process your loan application.
What do you mean by a marriage loan?
You are already aware of the fact that marriages in India involves a lot of customs or rituals. In India, marriages are celebrated in a manner which is not done anywhere else in the world. Such memorable events includes the food, the decorations, the big guest lists and such other activities. These joyful event marks the most memorable event of anyone’s life. However, the budget of wedding differs for different people and places. Keeping in mind all such things, the lenders are providing different schemes of marriage loan. In India, the following schemes of marriage loans are provided by lenders.
A personal loan for wedding by ICICI Bank.
SBI Saral Personal loan
A wedding loan by AXIS Bank.
HDFC Personal Lifestyle Loan
PNB Personal Loan
Corp Shubh Vivah Scheme
Tata Capital Wedding Loan
How do you check your eligibility for a marriage loan?
To avail a personal loan for wedding, you should be aware of the interest rates and the tenure of repayment. Your lender will check your monthly income before processing your loan application. Generally, the EMI of an unsecured type of personal loan or marriage loan is bounded to a total of 35% of your salary which do not include all your other EMIs. The interest rates of such loans are reliant on the following things-
Your monthly income after deducting your EMIs or other such considerations should be valid for availing a marriage loan.
You should have a good credit score to impress your lender for a loan. Generally, lenders offer marriage loans if you have a credit score of 750 or more for availing a marriage loan.
You can enjoy the interest rate benefits of marriage loan if you are a professional and not a self employed. The professional can avail loans at much lower interest rates than those of the self-employed individuals.
Your company also plays a major role for sanctioning a loan. Sometimes, banks offer special schemes with alluring interest rates for some big reputed companies.
What are some important factors that need to be considered before availing a marriage loan?
Given below are a few points that you need to keep in mind while you plan for adopting a marriage loan-
At first you need to plan the budget of your wedding carefully. According to that estimate the amount of loan required.
Then take a detailed account of the savings and your monthly salary that can help you in serving the EMIs later more comfortably.
Make a comparison of your predicted loan requirement with the EMIs that you need to pay in future and as such you can make necessary adjustments accordingly.
It is always important to make a comparison of the offers that various banks are offering against a marriage loan. You may come across even such banks that do not offer special loan for weddings, in turn offer a personal loan for such events. You can save a lot in the rate of interest rate, the processing fee and such other related charges, if you compare personal loans from different banks.
Always choose your loan amount carefully. As such loans come with higher rates of interest, you should choose the loan amount in such a way that you can repay it back the loan without much difficulty.
What are the documents that need to be submitted for availing a marriage loan?
Different banks will ask for different set of documents for applying for a marriage loan. However, few documents are the basic ones which are required by most of the banks. Few such documents are listed below-
An identity proof- If you are applying for such loan, you can submit any one of the below as a proof of your identity. These includes-
A voter ID card
Your driving licenses
Your passport
PAN Card (if you posses)
Adhaar Card
If you have the National Rural Employment Guarantee Act (NREGA) Job Card
Or Ration card
A proof of your residence- You can submit an7y of the following documents as an address proof for applying for a loan-
Water or electricity Bill
Driving license
Voter ID
Ration Card
Passport
Rental Agreement
Adhaar Card
An Age proof- People applying for a loan, do not have an age proof document separately. You valid ID proof or an address proof have your birth date mentioned in it. However, in some cases, you can also submit few documents listed below as your age proof-
Birth Certificate
PAN Card
School Leaving Certificate
For those individuals who are working as professionals, you need to submit Form 16 or bank account statements or your latest slips of salary to show that your salary is credited to your account monthly.
For those individuals who are self-employed, you need to submit your balance sheet, or P&L Account, or last 2 years of IT returns and the most recent bank statements of your account.
You also have to submit a loan application form along with the required documents to the lender to avail a marriage loan. This can be downloaded from the website of the lender or can be received from the lender’s office.
