Everything You Need To Know About Marriage Loans In India

Weddings in India is a grand affair where all the closed family and friends gather to celebrate your happiness. It is also a very special day for both the bride and groom which is why they make sure to make it memorable by organising a grand celebration. 

A grand celebration also calls for some heavy money spending. If you are someone with limited savings then spending it all on a wedding can be a tricky affair. A better option is to opt for a marriage loan which is available in India. 

What is a Marriage loan?

While there is no specific loan as a marriage loan, a personal loan can be taken to fund your wedding expenses. As it is a personal loan it does not require any collateral and can be paid back in easy monthly instalments. Also, the interest rate charged by lenders is market-driven and mostly depends on the borrower’s income, credit score and age. 

Why opt for a wedding loan?

For individuals who want an expensive wedding, but do not have the money to pay all at once, a wedding loan is a great option. Without much hassle of emptying your savings account, a personal loan will fulfil all your wedding wishes and make your day a memorable one. 

Some of the benefits of a wedding loan are:

1. Quick cash: Wedding requires a lot of planning, and preparation thus it is important that you have enough cash in hand to ensure you plan is executed. For that One requires quick cash which is possible through a personal loan. You can get the loan approved in 24 hours. 
   
   
2. Loan up to Rs 25 Lakhs: NBFCs offers a personal loan without any collateral of up to Rs 25 lakhs. The final amount for each borrower depends on their income, credit score and age. So you can now plan a grand wedding party for yourself. 
   
   
3. Online account access: Once you have applied for the loan, you can get online access to your account. This contains your pending payment, the interest rate being charged, Loan amount left and other necessary details about your loan. 
   
   
4. Longer repayment period: The repayment period for a personal loan is long, which offers borrowers enough buffer period. During this time, they can repay the loan in small monthly instalments.
    

These benefits make a marriage loan the ideal choice for your wedding. However, make sure that you calculate your expenses before applying for the loan. This will help you in avoiding unnecessary expenses that may cost you a fortune during the repayment. Make sure to know all the loan terms before signing up. Let us discuss some of them:

Eligibility criteria:

The eligibility criteria for wedding loans are the same as that of personal loans. While it may vary for different lenders, some common eligibility criteria are:

1. The applicant must be a resident citizen of India. 
2. The applicant must either be an employee of a public sector undertaking, a private company or a self-employed individual. 
3. The applicant must be between 21 to 60 years of age. 
4. For salaried individuals residing in Mumbai or Delhi, the minimum monthly income should be Rs 25,000. For individuals residing in the rest of India, the minimum monthly income should be Rs 20,000. 
5. For self-employed professionals the minimum yearly profit after tax based on the industry. 
6. The Minimum CIBIL Score of applicants must be 750.

These are the eligibility criteria applicants must fulfil to get the loan approved. For confirmation, the applicant is also required to upload some documents for the personal loan. 

Documents required for a personal loan

The personal loan documents for both salaried and self-employed individuals vary. Below are the documents for both.

Documents for Self-employed individuals

The personal loan documents for the self-employed include

• An identity proof, age proof, and address proof
• Completely Filled loan application form and a recent passport-sized photographs
• Proof of business registration/incorporation
• Income tax PAN copy
• Audited financial statements, Form 16, and income tax returns
• VAT returns and GST registration number
• Latest bank statement of 6 months and other supporting documents
• Depending on an individual’s profile, financial institutions may also ask for some additional documents.

Documents for salaried individuals

For salaried individuals, the personal loan documents required by the lender are:

• Filled loan application form
• Your recent passport-sized photograph
• Government-recognized photo identity, age proof, and address proofs.
• Bank passbook or bank statement with last 6 months’ records
• Latest income proof
• Form 16
• Proof of income tax returns
• Processing fee cheque

Conclusion

The above information discusses all the facets of opting for a personal loan. You can now go ahead and make an informed decision. Ensure that you borrow for the required reason and are aware of all the terms and conditions of the loan. This will help you choose the right lender for your loan.