Weddings are an extremely important event in anyone’s life and people at times find it difficult to arrange funds on their own to make this event happen. Hence, the most important kind of planning that needs to be done is for arranging the finances to make your dream wedding turn into a reality.
Fortunately, we have a lot of financial institutions at our disposal to help us with funds that can help us with our wedding expenditure in the form of a marriage loan. It is a personal loan taken to fund expenses related to the wedding. The interest rates for this kind of loan range from 11.25 to 24% per annum.
Personal Loan is a great medium to consolidate debt & make the major purchases which in the case of weddings could include the payment for the venue, caterers, fancy clothing, etc. But, we should always make it a point to utilize the financial resources responsibly. This practice goes a long way in improving your financial standing & image in the market.
The entire exercise of planning for a wedding becomes a mammoth task in itself right from hotel bookings which are done in advance, the jewelry shopping for multiple occasions, planning the caterers, decorations, wedding invitations, etc. Making a budget for the wedding could be the right way to approach an event like this and can give a fair idea of how much funds can be required. This can enable clarity on how much funds need to be borrowed vs what is our own capacity to pay.
Weddings have always been a huge deal in India and people are making the best use of loan alternatives available to fund the idea of dream weddings they have in their mind. They want to shoulder all the wedding-related expenditures by themselves and as a result, are not shying away from approaching lenders for necessary funds that can help meet their goal.
One has to be eligible to obtain a marriage loan, & every lender bank will have its own criteria, yet, a few generic ones are listed below:
- To become eligible for a marriage loan, one needs to be at least 21 years of age & for some lenders, the minimum age applicable is 23 years.
- One should not exceed 58 years of age when you fall into the salaried income category whereas people who are self-employed should be not more than 65 years of age.
- Minimum income requirement usually is Rs.15,000 for taking a wedding loan, yet some lenders might consider Rs.25,000. The living conditions of the applicant which include the current city, age, etc also affect these particular criteria.
- People who are employed on a salary basis, or are self-employed are considered eligible to avail of such kinds of loans provided they meet the minimum income requirement.
- The steadiness of income is a must for a candidate and hence, salaried individuals should have been employed for two years & at least a year with the current employer to be able to opt for a marriage loan.
- CIBIL Scores should be above 700 amongst applicants and the ones who have lower CIBIL Scores may also get the loan but lenders might charge a higher rate of interest.
- The quantum of loan ranges between 5 Lakh to 20 Lakh but also varies from lender to lender and depends on various factors which include income, repayment capacity, CIBIL Score, etc.
Once you are eligible for availing a marriage loan, there will be a set of documentation that would be required from your end to get started with the formal process, which includes:
- Valid Proof of Identification: Applicants can submit any or combination of the following documents- Passport, Voters ID, Driving License, Aadhar Card, Ration Card, National Rural Employment Guarantee Act (NREGA) Job card, PAN Card.
- Valid Proof of Address: The documents listed below serve as proof of address and they include: Diving License, Ration Card, Passport, Adhar Card, Rental Agreement, Water/Electricity/Telephone Bill & Voters ID.
- Proof of Age: Usually the documents submitted have the proof of age of the applicant mentioned on them but, in case there are documents that don’t have age written then, the documents mentioned below can be submitted: School Leaving Certificate, Birth Certificate & PAN Card.
- Salaried individuals need to submit Form 16 or the latest salary slips or bank statements to show salary is credited in their bank account.
- Self Employed applicants need to show the P&L Account, Balance Sheet, and the latest Bank Statements of the primary account for the last 6 months.
- The Loan Application form would be available on the Lenders website or can be taken from the Lender. It needs to be filled and submitted along with the rest of the documents.
Kindly note that every lender will require a different set of documents to be submitted but the general/basic ones have been highlighted above. Most of the major banks and NBFC’s in India offer major loans like Punjab National Bank, Standard Chartered Bank. State Bank of India, IDBI Bank, Kotak Mahindra Bank, Axis Bank, and many more.