Marriage is one of the biggest and most significant milestones in a person’s life. So naturally, you would want to go all out to make the celebration unforgettable. Even though it would be beyond your means, you decide to splurge on the occasion. You almost certainly have to set up a reserve fund or an investment to cover the costs. However, in your eagerness to make the wedding a once-in-a-lifetime event, you wind up going much over your budget. You are left with no choice but to borrow money. This is where a marriage loan can become your safety net.
Even when you have the option, borrowing from friends or relatives may put you off because of its negative connotations. You might think about obtaining a Personal Loan for marriage in such a situation. As the name implies, you can use a Personal Loan for a wedding or marriage to pay for costs associated with the ceremony. Financial institutions have started to offer such loans since lenders have understood that money shouldn’t be a barrier during a wedding.
Eligibility Criteria
The following are the criteria to be met by the borrowers, which might differ from lender to lender.
| Age | An applicant for a Marriage Loan must be at least 21 years old. In terms of the maximum age, it is 58 years. |
| Minimum Income | Lenders demand a minimum monthly income of Rs. 20,000 to qualify for a marriage loan. Marriage Loans are offered to professionals who are salaried, self-employed or hold a professional license. |
| Credit Score | Lenders require a credit score of 750 or higher because marriage loans are unsecured. Although lenders have a tight screening process, some lenders like Clix Capital accept applicants with an Experian credit score of 630. |
| Maximum Loan Amount | The maximum amount for a Personal Loan for a wedding is usually 10 lakhs rupees, though this varies depending on the circumstances. |
The opportunity to have the wedding of your dreams exactly as you want seems too tempting to pass up, but there are some considerations you should make before applying for a Personal Loan for marriage.
Plan Loan Amount
Before filling out the loan amount on the application form, you must consider your options carefully. You could be tempted to choose the maximum amount offered because many lenders provide up to Rs. 10 Lakhs wedding loans. However, remember that any loan comes with an interest charge. So, apply for a loan with an EMI you can pay without sacrificing your other living expenses.
Research Interest Rate
One of the most important things to consider when applying for a personal loan is the interest rate. A hurried choice could cost you too much money because the interest rates on wedding loans range from 14.99% to 24.99%, depending on the provider. As a result, you must conduct thorough research on the various kinds of marriage loans offered on the market. Then, compare your choices, and only choose the best one.
Check Foreclosure Charges
Many lenders demand steep foreclosure fees on personal loan for wedding, which you might not be aware of. These foreclosure fees might be as high as 5%, which would be catastrophic to your finances. You must therefore make it a point to talk about it with your lender and choose a Personal Loan with no foreclosure fees.
You should also look out for
- Additional charges
- Processing charges
- Verification charges
- Defaults
- GST
Borrow Only What is Required
Well, it should go without saying that saving money results in earning money. As a result, you must list all the future wedding expenses. Remove any costs that are unreasonable or unneeded from this list. Doing this can lower the event’s cost and make it more reasonable for you.
Conclusion
Finally, Personal Loans for marriage are undoubtedly a helpful credit option, but they should be utilised with care. To avoid any unfavourable conditions later, you must plan for the associated expenses before the wedding. Consider loans with more lenient terms and conditions, but only if you have to.
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