Marriages are important milestones in everyone's life that
require careful financial planning. It's common for people to cross their
wedding budgets and tide over problems like that. Wedding loans are Personal
Loans that people can borrow to meet their marriage-related expenses. After
determining their eligibility, they can use a Personal Loan EMI calculator to
select a suitable tenure according to their capacity. Here is how a wedding
loan can come to the rescue when an individual needs money for financing a
marriage.
What are Wedding Loans?
Wedding loans are unsecured personal loans that help people
get funding for a wedding. With this loan, borrowers can handle all their
wedding-related expenses at reasonable interest rates. These loans have no
end-use restrictions, allowing borrowers to use the loan amount for any purpose
they want, including venue costs, invites, catering, photography, make-up,
gifts, jewellery, decorations, lighting, wedding outfit, guest accommodation,
etc. Many borrowers also use wedding loans for funding honeymoon expenses, home
renovations, and buying a special gift for their spouse. Leading NBFCs offer
high loan amounts that borrowers can repay in convenient monthly EMIs. Since
Personal Loans are unsecured, lending institutions approve them based on the
applicant's income, financial obligations, credit score, and repayment
capacity. That way, they help borrowers plan an ideal marriage event without
stressing their finances.
How Does a Wedding Loan Help Avoid Unexpected Costs?
Indian weddings involve numerous occasions and rituals that
continue for multiple days, making the event considerably expensive. Instead of
using up life's savings to meet wedding-related expenses, borrowing a wedding
loan seems to be a prudent choice.
Here are a few benefits one may enjoy by taking a Personal Loan to cover various costs:
Coverage for Multiple Expenses: Wedding loans come without
any end-use restrictions. That means borrowers can apply for a Personal Loan to
fulfil any wedding-related expenses. Moreover, wedding loans are the best
funding options to tackle emergencies and unexpected expenses during a wedding.
Hassle-Free Application: Efficient marriage expense
management is quite overpowering, especially for people hosting such a big
event for the first time. However, while applying for a personal loan for marriage, borrowers can complete the entire
application process in no time without burdening themselves. All they need to
do is apply on the website of a reliable NBFC or financial institution.
Most technologically-advanced NBFCs support a 100%
application process that one may complete from their home. They just need to
visit the NBFC's website, follow their application instructions, review the
terms and conditions, and get instant approval. After evaluating the loan
conditions, they have to accept the loan offer to get a quick disbursal.
Quick Funding Source: Since wedding loans are personal
loans, they do not require any collateral for security. Hence, loan seekers can
obtain the necessary funding without risking their assets. These are instant
loans with minimal formalities and a fast turnaround time, resulting in quickly
getting the required amount. In general, the applicant can receive loan
approval almost instantly after their document verification online. In
addition, aspiring borrowers can get the desired loan amount directly into
their bank account within no time.
Credit Score Improvement: A wedding loan is a perfect
funding option to cover wedding expenses. Besides, it also helps build a strong
credit history with regular EMI payments. For example, if an individual borrows
a ₹ 5 Lakh loan and pays its EMIs consistently each month until full repayment,
doing that will boost their credit score and improve their creditworthiness. Thus,
they will be in a better position to avail of more loans in the future.
Covers Additional Costs: GST and other taxes are extra costs
that considerably increase the overall expenses of a wedding. These costs apply
to all luxury items used in a wedding ceremony, making the event quite more
expensive than expected. Opting for a marriage loan helps handle these taxes
more easily and efficiently.
Reduced Burden of Overtime Costs: While planning for a
wedding, an individual hires caterers, venues, decorators, and other services
for a certain period only. However, the celebrations may sometimes extend
beyond that time limit, leading to overtime costs for the extra time requested.
Such overtime costs are pretty common in Indian marriages, and a wedding loan can
help beat them with ease.
Benefits of Borrowing a Marriage Loan
Here are a few upsides of funding a marriage with a Personal
Loan:
- A marriage loan is a quick, convenient, and self-reliable
way to finance a wedding. Many couples borrow these loans to cover their
wedding expenses without depending on their parents to fund the celebrations.
- The borrower's savings remain intact, so they don't need
to compromise on their wedding dreams due to a lack of funds.
- A Personal Loan provides an ample loan amount, allowing
borrowers to celebrate their new relationship without any financial stress.
Loan seekers can avail of a loan of up to ₹ 10 Lakh according to their income,
DTI ratio, and credit score.
- Wedding loans provide better interest rates than credit
cards and require minimal documentation with no collateral.
- Paying the loan EMIs consistently helps improve the credit
score for future loan applications.
Eligibility Criteria to Apply for a Personal Loan for a wedding
Following is the eligibility criterion to get a wedding
loan:
- The applicant should be an Indian citizen between 12-58
years
- The applicant should be a salaried professional working in
a private or public company
- The applicant should have a minimum salary of ₹ 20,000 per
month
- The applicant should have at least one year of total work
experience, with six months in the current organisation
- The applicant should have an Experian credit score of 630
or above
From the above points, the purpose of taking a wedding loan
must have become clear to those planning to host a marriage. However, before
applying for a loan, loan seekers must read the terms and conditions to ensure
they meet the eligibility criteria and get fast approval without hassle.
