Have your dream Wedding with a Marriage Loan

Posted by Apoorv Chaudhary on December 1st, 2020

A personal loan is a multipurpose loan as it can be used for any personal purpose such as for travel expenses, studies, or for that matter to meet all the cash requirements. It is a collateral-free loan. This means you can avail of a personal loan without pledging any security against the loan amount.   

In today’s time, a Personal Loan for wedding is quite popular and in trend due to which an ample number of personal loan lenders can be found out in the market. So, don’t worry if you are falling short of your funds for the wedding. As you can easily acquire a loan to fund your marriage. Whether you are salaried, cash salaried, or self-employed – you can easily apply for a marriage loan with or without documents.   

Rate of Interest on Personal Loan for a Wedding 

As mentioned above a large number of Banks, NBFCs, and P2P lenders can be found out there. Generally, the interest rate on a personal loan starts from 10.90% p.a. and onwards. However, the offered interest rate may vary based on various factors and from one lender to another. Following is the list of some popular and favourable personal loan lenders with their generic interest rate on a personal loan for a wedding. 

 Common eligibility criteria to acquire a Personal Loan 

• A salaried employed applicant's minimum age should be of 21 years and a maximum of 60 years.

• If an applicant is self-employed then his/her minimum age should be of 25 years and a maximum of 65 years.

• An applicant should have a minimum working experience of 3 years and should be working in the current organization for at least the last 1 year.

• Applicant’s minimum monthly salary/income should be Rs. 20,000.

• The business should be profitable for a minimum of the last 1 year. 

A generic list of Documents Required for Wedding Personal Loan

For Salaried–

• Proof of Identity - Aadhaar Card /Voters ID/Passport/Driving License /PAN Card

• Residential Proof - License Agreement/Utility Bills (maximum three months old)/Passport

• Income Proof – Last 3 months salary slips along with the bank statement showcasing the salary transaction

• 2 passport size photographs 

For Self-employed- 

• KYC documents (Identity proof, address proof, and birth certificate)

• Proof of Residence - License Agreement/Utility Bills (maximum three months old)/Passport (if you own one)

• Latest ITR for income proof

• Proof of Official Address 

• Last 1-year testimonials to show the continuity of business. 

Why acquire Personal Loan for a Wedding?

 Here are some major reasons for availing of a personal loan for a wedding:

1.    It is affordable 

Generally, the personal loans interest rate starts at 10.90% p.a. However, a few years back, the interest rate on personal loans was comparatively high since there was less competition in the lending business. But with the entry of new money lenders and fin-tech concept, a wide array of options is available to loan seekers.  

2.    Online Loan Processing 

There is complete online loan processing. You can apply for the loan and upload the required documents and e-sign the loan agreement with your home comfort. 

3.    Flexible Loan Tenure 

If you feel the need for extra financial support for the marriage, then you have an option to choose a shorter tenure for a personal loan. This means you can repay the loan amount as per your desire. Usually, the offered flexible tenure ranges from 1 year up to 5 years. As many lenders offer a wide flexible range of repayment tenure, the liberty of choosing the loan tenure lies entirely in the loan borrower’s hands.   

Things to be considered while choosing a Marriage Loan  

1. Low rate of interest 

The interest rate is one of the most important things one should consider while applying for a marriage loan. This has a great impact on the overall cost of the loan over the loan term. The offered interest rate majorly depends on the borrower’s credit score.  

2.     Easy EMI 

An EMI (Equated Monthly Instalments) is considered affordable when it does not impact the daily living expenses and also does not feel heavy on the existing monthly budget. 

3. Extra charges 

Various lenders offer personal loans with some additional charges. So, it is essential to ensure that there is zero hidden cost on a personal loan. The processing fees and other charges differ depending on the lender. You should always check the all included charges besides the rate of interest before applying for a personal loan. 

4. Loan Repayment Term 

A wedding might last for a day, but the loan would be repaid for a longer time. Although, Short-term Personal Loans are also available to you in the financial market. But it is always advisable to choose a loan repayment tenure that would suit you perfectly as per your comforts. 

Various factors determine personal loan interest rates:

• Income: The chances of getting a personal loan at a low-interest rate get higher with higher incomes. As a personal loan interest rate is heavily dependent on the borrower’s income level and the organization or employer, he/she is working with. 

• Loan Repayment Tenure: This is an important factor that determines the interest rate on a personal loan. Usually, the shorter loan repayment term attracts the higher interest rate on a personal loan and vice versa. You must know that EMIs (Equated Monthly Instalments) is the constant payment made to the lender to repay the loan.

• Credit Score: Almost every lender keeps the CIBIL score among the important grounds to judge the loan seeker's capability of repaying the loan amount on time. If a lender found an applicant in default of any loan repayment, the chances of loan application rejection and getting a personal loan at a high-interest rate increase. 

 Conclusion:

If you receive a salary in cash, there are few apps including Indiabulls Dhani, where you can apply for a Personal Loan for a wedding without any income proof. You just need the basic KYC documents. That’s it! So, acquire a personal loan for a wedding and have your dream wedding.