Pros and Cons of Taking a Marriage Loan

A Marriage Loan is an amount procured to meet the end to end expenses of a wedding. A Personal Loan can be taken to meet these requirements. Using up your entire savings for the big day may not be a good idea; you may not even have sufficient funds. Taking a loan is quick and easy but before you do so here’s what you should keep in mind.

Advantages:

Prompt: It takes as little as 5 minutes to get approval, and the money will be at your disposal within 3 days, and in some cases, less than 24 hours. If you’ve decided to procure a loan amount at the last minute it still won’t be a big problem when you applying for personal loan for wedding.

Less Risky: You don’t need any security to obtain a Personal Loan. This makes it less risky for the borrower. Your assets are safe and that’s why it’s preferred over other kinds of loan where your securities are forfeited upon non-repayment of the loan amount.

Flexibility: You don’t have to do any explaining while applying for a Personal Loan. The loan amount can be used for whatever is the need of the hour.

Low-Interest Rates: You can also check for schemes and offers that you can avail while applying for the loan.

Sufficient Funds: The loan amount is big enough to cover all expenses of the wedding and the tenures are more than sufficient to repay.

Basic Documentation: Unlike other loans, a Personal Loan won’t need too many documents, and so, the processing time is less. You’ll need to be a working professional and submit basic papers like your salary slip and employment proof.

Disadvantages:

Part Payments: Lenders do not allow part payments of loans. This means you’ll end up paying for the entire tenure. It could turn out to be pretty expensive and the initial payments will be towards the interest.

Credit Rating: Since you don’t have to give any security you have to have a really good credit rating. The availability of a Personal Loan will depend on the creditworthiness of an individual and also they have strict eligibility norms. If you have a low credit rating either you’ll end up paying huge interest amounts or your application will be rejected. 

Risky for Lenders: Since a Personal Loan is unsecured you may find it difficult to convince the lender to give you the loan. You’ll also have to adhere to strict guidelines issued by them. Every bank has its own eligibility criteria so make sure you meet them before applying for a Personal Loan.

How to Take a Wedding Loan?

You can acquire a Personal Loan in 3 easy steps.

Step 1: Eligibility Check - Using the online eligibility calculator for personal loan that will help you to determine whether you’re a good candidate for loan application. Every bank website has their own calculator and it can be checked online. Some of the factors that the calculator will consider are - income, employment, city of residence, etc.

Apart from the above, you must have a very good credit score. The minimum credit score required to procure a Personal Loan is 750.

Step 2: Loan Amount - Using the online EMI calculator you’ll be able to estimate the amount you need to pay the bank every month. This will help you get an idea of the loan amount you’ll be able to afford along with the tenure that will suit you best.

Before you take the loan amount it’s best to do a research on the interest rates available in the market and opt for the lowest one. Read the terms and conditions before proceeding.

Step 3: Application - Once you’re eligible for the loan and have also decided the EMI amount, you can proceed with the application. Application of the loan can be done online within the comfort of your home. The application form can be filled on the bank website or downloaded.

Documents Needed to Apply for a Personal Loan

In the case of a salaried individual:

• 2 passport size photographs.
• As a proof of identity, you will need to submit a copy of your driving license/PAN card.
• As a proof residence, you’ll need to submit a copy of your leave and license agreement.  
• As a proof of income, you’ll need to submit your last 3 months’ salary slip.
• As a proof of your existing bank account, you’ll need to submit last 3 months’ bank statement. 

In the case of a Self-Employed Individual:

• You’ll need to submit KYC documents such as identity proof, address proof, and DOB proof.
• A copy of you leave and license agreement (not more than 3 months old).
• A copy of your audited financials for the last 2 years.
• Bank statement of the last 6 months.
• Office address proof.
• Proof of office or residence ownership.
• Proof of continuity of business.
• You’ll also have to show statements that prove you’ve been making a profit.