Everything You Need to Know About Marriage Loan
A marriage loan is an unsecured personal loan that you can easily avail through a loan app or an online loan application. Today, many lenders in India offer marriage loans ranging from Rs. 25, 000 up to Rs. 1 crore.
However, this maximum loan amount eligibility depends on a number of factors including your salary, credit score and choice of lender. Loan apps offer you instant loans up to Rs. 1.5 lakhs. For larger loan amounts you can try approaching a bank or an NBFC. Depending on your eligibility, you can avail a higher loan amount.
But before applying for a personal loan, there are a few things that you must know.
Top Features of a Marriage Loan
A marriage loan is one of the most preferred and suitable financing options for meeting wedding expenses. Whether you need additional funds for your venue or for hosting a grand treat, a marriage loan can help. Here are some of the top features of a marriage loan –
- It is collateral-free funding
A marriage loan is an unsecured loan. This means, unlike other loans, you do not have to pledge collateral to avail this advance. This makes personal loans for weddings one of the most preferred choices among all borrowers.
- Minimum eligibility and document requirements
You need to meet only a handful of eligibility rules to avail a personal loan. Also, the document requirements for a personal loan are much simpler. When applying through a loan app, you can easily submit a digital copy of your documents online.
- High-value financing
With some of the best lenders offering personal loans, you can get high-value financing. If you apply for a loan through a loan app, you can secure instant funding of up to Rs.1.5 lakh. Banks and NBFCs may offer you higher loan values depending on your eligibility.
- Flexible tenure
Online loans for weddings come with flexible tenures. You can choose tenure from 12 months to 60 months depending on your loan affordability. This allows quicker repayment and easy management of your EMIs.
- Fast approval and disbursal
Online loans are known for a quick approval and fast disbursals. If you meet the eligibility criteria of the lender and furnish all documents correctly, then your loan will be approved within minutes. The processing and disbursements are completed within the next 24 to 48 hours.
Reasons to Avail a Wedding Loan
A wedding loan can come in handy in many situations. Though a wedding loan may not be suitable for financing the entire cost of the wedding, it does provide you with an additional cushion for extra needs.
- An online loan through a loan app can help you meet last-minute financing shortfalls in wedding arrangements.
- You can use this money to host your bachelorette or book an exotic honeymoon.
- An online loan also comes in handy in meeting last-minute emergencies like guest accommodation, venue upgradation, and other costs.
- You can use this loan to buy your wedding dress and jewellery or gifts for relatives.
Things you should keep in mind before applying for a marriage loan
- Check the Interest Rates on Personal Loans for Marriage
Personal loans for marriage provided by reputed lenders come with affordable rates of interest. You can get the best interest rates on a personal loan by applying for these loans through popular loan apps.
Make sure to compare different lenders before applying for a personal loan. Even a slight change in the interest rate can make a significant change in your repayment experience. You can also check for promotional offers, festive offers, and corporate offers on loans for better interest rates. In addition to that, don’t forget to negotiate with your lender to get a reduced interest rate on your loan.
- Check your credit score before applying for the loan
Before applying for an online loan you must check your credit score. Your credit score is a reflection of your creditworthiness. It is a three-digit number assigned by a credit bureau based on your past credit behaviour and your ongoing debts. Lenders check your credit score before approving your loan application. Your credit score also impacts important lending decisions like interest rates and other loan terms.
If your credit score is high, then you can negotiate with your lender for better interest rates. You can also request a reduction in processing fees and other charges. In case, your credit score is low then work towards improving your credit score.
- Consider the repayment process
Your loan repayment cycle begins from the next month following the disbursement of your loan amount. You must be well-prepared to accommodate the EMI in your monthly expense. While applying for the loan, consider the fact that your expenses are bound to increase post-marriage. Also, make sure that you discuss your borrowing decision with your spouse.
In addition to this, make sure to keep a surplus of 3 to 4 months of EMI in your account to handle any emergency without defaulting on your loan. Remember, delaying your loan repayment even by a single day can impact your credit score negatively.
- Know about the loan disbursement process
Once your online loan application is approved by the lender, the disbursement process may take a day or two. The amount is usually credited into your account within 24 to 48 working hours.
The final amount that you will receive would be less than your approved amount. This is because the lender deducts the processing fees, any other upfront charges and GST from your sanctioned amount.
Applying for a wedding loan is comparatively easy through a loan app. However, before availing an online loan for the wedding you must keep a few things in mind. Some of the most important tips for making the right borrowing decisions are – Firstly, never overborrow and control your urge to splurge in the wedding. Secondly, never skip the research process. Go for a lender only after you have adequately researched all your market options. Thirdly, never opt for a longer tenure just to keep your EMI minimal. Finally, use a loan EMI calculator to make the right borrowing decisions.