An Overview on Wedding Loan: Interest Rate, Tenure & Features
Last Updated : June 27, 2016, 10:25 a.m.
Many of you will surely agree on the fact that celebrating a child’s wedding is definitely one of the biggest events in any parent’s life. And, in India it is considered as the most joyous occasion that involves the expenses on a grand scale. However, some are prepared with the cash so as to fund the expenditure of such a magnitude, whereas those who are not, they look for a suitable wedding loan that can actually help them to tide over this huge cash outflow.
However, one thing that needs to be mentioned here is the fact that there is no specific product called marriage loan, as majority of the banks/NBFCs offer personal loan that you can use to cover all the wedding expenses. Yes, you can easily avail a personal loan for wedding, and you can use it for various wedding purposes. Moreover, these days there are plenty of banks/NBFCs available in the marketplace that offer you best deals for wedding loans without much formalities.
You can get the instant funds to make your dream wedding unforgettable. But, the only disadvantage associated with such type of loans is the fact that they are considered as unsecured loans, hence lenders give you this loan at a very high interest rate. Yes, lenders give you such type of loan at their own risk, and it is difficult for them to trust you so easily, hence they charge you with higher rate of interest.
But, before going any further, let’s understand first how you can avail this loan.
How to apply for a marriage loan
Well it is absolutely easy to avail this type of loan as many lenders have now start offering the loan with a very easy procedure. Yes, you can either apply online or visit the branch near you. But, before you apply for marriage loan, it would be great for you to check your eligibility first. With the help of doing so, you can easily understand whether you are eligible to get the loan or not.
You can check your eligibility online at several sites, offering you such type of loan. Once you have crossed the eligibility criteria, only you can avail the loan amount that ranges from a few thousands to a few lakhs, depending upon your credit score and ability to repay.
Moreover, as far as documentation is concerned, you can avail this loan with less documentation that includes-ID proof, address proof, bank statement, salary slips, age proof etc. Actually, the list of documents will vary from bank to bank, and depends on various other factors like your income, profession, loan requirement and so on.
Interest rate and tenure of Marriage Loan
When it comes to interest rate, it depends on a number of factors such as income, profession, credit score, relationship with the bank etc. If your credit score is high, and your profile appeals to the lender, rate of interest can be negotiable for you. Whereas, in general the rate of interest for marriage loan ranges from 11.49%-24% along with the tenure of 1 month-6 years.
Features of Wedding Loan
You have the complete flexibility to enjoy the end-use. Yes, as there are no restrictions on how you should spend this loan amount. The way you want, you can use the loan amount so as to cover all the wedding expenses, ranging from clothes, jewelry, catering to decorations, you can manage each and everything. You have the complete freedom to use the loan amount for any wedding purpose, and can make the D-Day extra special.
Another key feature associated with wedding loan is the fact that being an unsecured loan, it does not require any collateral. Yes, there is no need to provide any security to the lender in the form of cash, shares or any other assets. Without any collateral, you can easily avail this loan. In fact, in a way it is good for those customers who are unable to raise the required collateral for the loan.
(Updated on:20th October,2016)