Many couples dream of wanting to make their special day a remarkable one, a typical big fat Indian wedding. Large sums of money are needed for a grand wedding’s flawless execution. However, if you begin looking for a loan to cover wedding costs, you can come across such loans referred to as marriage loans on the websites of many NBFCs and financial institutions.
A wedding loan is a specific personal loan offered to cover wedding-related costs. The interest rates for marriage loans are often similar to those for other types of personal loans provided by lenders.
Benefits of a marriage loan
Flexible repayment
You can choose a term between 12 and 60 months with the flexible repayment option, giving you plenty of time to repay the loan amount without any problem. Thus, you can choose a loan payback period appropriate for you by taking your ability to pay it back into the account.
Instant approval
Instant approval is available for wedding financing. You can quickly apply for a marriage loan online, verify the requirements, provide supporting documentation, and get your loan approved without hassle.
No asset liquidation
When you decide to take out a wedding loan, you do not have to dip into your savings or liquidate your assets to provide any collateral. This helps prevent premature closure charges or withdrawal of long-term investments. This, in turn, also assists in not losing out on any return you would earn on such investments.
Customizable repayment tenure and EMI
A personal loan often has adjustable monthly payments (EMIs) and term options that range from a few months to a few years. You may be able to obtain a loan with cheaper interest rates if you have a solid credit history and a high credit score.
As a result, you can alter your repayment plan based on your monthly salary, financial requirements, and cash flow when talking to a lender for a loan. To prevent any difficulties with loan repayment during the loan term, make sure the payable EMI is within your budget.
Now that the benefits of marriage have been established, it is crucial to look at the three factors that affect your eligibility:
Credit score
Your credit score is based on your credit card payment history, loan repayment history, and credit use. Your loan application may be accepted immediately if your CIBIL score is 750 or higher.
Employment profile
Salaried and self-employed professionals can apply for a marriage loan. The lender reviews your employment history, job details, age, and employer profile to determine your loan eligibility.
Debt-to-income ratio
To qualify for a personal loan for marriage, applicants should have a reliable source of income. To determine your debt-to-income ratio, lenders will look at your current liabilities, such as student loans, mortgages, auto loans, credit card debt, and other loans.
The maximum loan amount offered, the applicable interest rate, the loan tenure, the auto-debit discount, the prepayment fees, and the foreclosure facility are some significant criteria that will help you choose a lender.
Final notes
Wedding costs can sometimes go through the roof, with all the associated costs involved. You want this particular day to be memorable. Therefore, having cash on hand is crucial. It is advised that you consider the numerous personal loan possibilities if your wedding is approaching. Check your credit score and work to raise or maintain it to be eligible for a loan with a low-interest rate.
