With plenty of options for almost everything, people may pick what loan they want and what fits them best. Today, a new type of loan is given for everything.
The wedding loan is one of them. Marriages are enjoyed in India like nowhere else on the planet. Getting married is among the most vital events in a person’s life. If it’s their wedding or the wedding of a loved one, they would want to make the day memorable. Though wedding costs vary from person to person, most weddings go over budget.
While loans from friends or relatives are possible, the beliefs it brings could be a barrier. They could think about getting a marriage loan in such a case. Let’s know what a marriage loan is and all its important aspects in the upcoming sections.
What is a Marriage Loan?
A marriage loan is also known as a wedding loan. A marriage loan may be used to pay for a wedding. It also involves other costs like a trip or starting a new home, such as decor and other household items.
In recent years, many banks and NBFCs have offered marriage loans, which may pay for all wedding-related costs. Almost every bank in the nation offers this kind of loan. It aids the person in paying for their own or a family member’s wedding.
Factors to Keep in Mind Before Applying for a Wedding Loan
- Maintain a Good CIBIL Score
A CIBIL rating of 750 or above is good for a personal loan. This score, which runs from 300 to 900, is based on rigorous research and a thorough study of the credit history. A good CIBIL score increases the chances of receiving a wedding loan with a low interest rate and faster approval.
- Keep The Debt/Income Ratio Low
Lenders use the Debt To Income (DTI) ratio to measure their borrowing risk. The ratio of the gross income each month goes toward making the monthly debt duty.
A low DTI ratio suggests one is more likely to handle the current and new debt. This improves the chances of getting a personal loan for marriage.
Having a low DTI ratio improves the chances of getting rapid financing in the event of an emergency. So, ensure to control the costs by sticking to a budget and not relying on credit. One may reduce this figure by paying off the current debt or lowering it before applying for a wedding loan.
- Choose The Lender Wisely
The market is flooded with lenders. Ensure one chooses the best one for their needs. One may contact lenders, but ensure that they know the pros and cons of each. Anyone with a paid job may apply for a loan using fast lending apps. One may acquire a loan online and have all the relevant papers.
Eligibility for a Wedding Loan
The eligibility criteria for a personal loan for marriage are as follows:
- Minimum Age
A person must be at least 21 years old to seek a wedding loan. Some lenders have a 23-year-old age limit for wedding loans.
- Maximum Age
Salaried borrowers who want a wedding loan should be no older than 58, while self-employed borrowers should not be older than 65.
- Monthly Net Income
Wedding loans need an income of Rs. 15,000, with some lenders requiring a salary of Rs. 25,000. The present city, age, and other factors may also affect the vital wage need.
- Type of Jobs
If they fulfil the minimum income needs, experts, salaried workers, and self-employed people may apply for wedding loans.
- Credit Rating
Lenders favour approving marriage loans for people with CIBIL scores above 700. A loan may still be approved for men with lower CIBIL scores, although the rates may be higher.
- Maximum Loan Amount
The maximum sum obtained as a wedding loan can vary from lender to lender. It is also based on many other factors, including the ability to repay the loan, the person’s income, and credit score. Yet, loans usually vary from Rs. 5 lakh to Rs. 20 lakh.
Documents Needed To Apply for a Wedding Loan
Various lenders may request a wide variety of papers during the loan process. The key ones that most of them might ask for from men are given below:
- Valid Identity Proof
- Authentic Address Proof
- Form 16 or the most recent payslip or bank account records reflecting the credited wage for those who are salaried
- For self-employed people, the most recent six-month bank proof for the primary account, IT filings for the last two years, P&L accounts, and balance sheets.
- The person must complete and submit the loan form for the wedding loan to the lender along with the required papers
How to Apply for a Wedding Loan
Wedding loans may be obtained in two ways. One may apply in person at the lender’s location or online. However, the loan process may differ from lender to lender.
The online form helps ease the process since one can focus on wedding preparations rather than standing in lines or travelling. Follow these steps to get a personal loan for marriage online:
- Go to the official website of the preferred lender and fill out the online form.
- Enter the data correctly and confirm the identity using an OTP.
- Provide income and KYC details.
- Choose the sum that is needed and submit the form.
Marriages in India may be hectic, resulting in a constant need for more funds. Every day, one must get several emails promising pre-approved or fast personal loans. Getting a loan isn’t harmful as it may come in handy in various areas. However, you have to consider a few things before taking a loan, which are discussed above.
Obtaining a personal loan for marriage while defining the reason for the credit as a marriage loan is very fast and simple. As it is a vital day, not just in India and globally, there is a strong possibility that an excessive amount of money would be required. Piramal Finance has similar blogs for readers to help them get a personal loan for marriage. Give the blogs a read and check out the other services they offer.