5 Things to Consider Before Applying for A Marriage Loan

Weddings are a grand affair not only in India but also across the globe.  It is an important part of one's life, and many of us would have been saving for it to make the dream of a perfect wedding come true. Weddings are grand and involve many guests. No matter how much we plan for the D-day, we end up in last moment financial emergencies. Hence a financial backup is necessary for surprise expenses.  

Many lenders know this, which is why they have loans customized for weddings. These non-collateral loans do not need any security to be pledged. They are granted based on certain eligibility criteria. However, it is required to consider a few factors before availing of the loans to get the best deal. So here are 5 Things to keep in mind Before Applying for a marriage loan.

5 Things to Consider Before Applying for a Marriage Loan

• The Loan Amount and Tenure

Before applying for a marriage loan, it is imperative to evaluate all your costs, savings, and requirements to determine the sum required for the loan. Knowing the loan amount beforehand is necessary to plan the loan without going overboard. 

Calculating this amount is easier with a home loan EMI calculator. You can adjust the sliders to change the tenure to know the monthly installments and the personal loan interest rates you must pay the lender.  Select a suitable EMI based on your convenience. The faro to keep in mind is that longer tenures have smaller EMI's but increased interest rates, while shorter tenures have larger EMI's with decreased interest rates. 

• Joint Loan Facility

A joint loan facility is a unique and convenient plan that is offered in marriage loans. The burden of the marriage loan is divided between both partners. For shared dependability, the lender will also consider your co-applicants credit scores and spending habits. But with the income increased due to two applications, receiving the designated loan amount becomes even easier.

• Credit Score

Credit scores are a major determinant of your eligibility. To be considered to have a high CIBIL rating, one must score at least 750 out of 900. Credit scores are an indicator of borrowers' financial health and spending pattern. Loan amount sanctions highly depend on this. High credit scores lead to higher chances of loan approval and lower interest and EMI installments. 

• Interest Rate

Banks and NBFCs offer competitive personal loan rates for marriage loans. The wedding loan interest rates start from 12 percent to 25% depending on your credit score, income type, repayment history and other factors. Research several lenders and go for the one who offers you the best deal before signing the fine print.

• Check for Additional Charges

Take additional costs into consideration. It is necessary to check for processing fees, foreclosure charges, late payment charges, and all other costs into consideration before signing the document as these are appended to your overall cost. Lenders take a processing fee of 1 % to 3% on marriage loans. Hence it is important to check with your lender and calculate these costs.

Most banks and NBFCs levy prepayment charges on marriage loans, and hence checking the charges in advance will help you avoid surprise and uncalculated costs.

Planning your fairytale wedding expenses with marriage loans is hassle-free. Apply for the loan and follow the five steps to avail of the loan. If eligible, the loan amount will be processed and credited within 24 hours. So what are you waiting for? Let’s prepare for the wedding without worrying about a cash crunch.