According to a recent survey, India’s current wedding market is valued at $50 million and is expected to grow rapidly. The data is not surprising, considering that Indian weddings are quite extravagant. Subsequently, a dream wedding can incur considerable expenses which can be financially straining. In such a situation, instead of depleting your savings, you can consider opting for a wedding loan to finance all your marriage-related costs.
While there can be several ways to fund the costs of marriage, personal loans for wedding stand out for their attractive benefits and borrower-friendly terms. So, instead of looking for different ways of financing the same, the smart option would be to select a wedding loan wisely for maximised benefits.
Wedding loans – A quick look
Wedding loans are a type of unsecured credit that can be availed of easily with minimal documentation.
Apart from this, other advantages of wedding loans are as follows –
- Flexible loan tenure – You can choose a loan tenure extending up to 60 months that suits your repayment capacity. However, before selecting a tenure, keep in mind that an extended repayment period, although reducing the EMIs, increases the total interest accrual.
- Faster processing – Applicants who meet the eligibility criteria receive quick approval for the advance. Also, with select lenders, the loan amount is disbursed to their account after document verification within a day.
However, there are several aspects of a wedding loan that one should know about before applying for one.
Smart ways to avail a personal loan for wedding
Fulfil all eligibility criteria
Applicants should go through the eligibility criteria for a personal loan specified by the lending institution and satisfy all the requirements for improved chances of quick approval. The eligibility criteria for each lender may vary slightly. Nevertheless, there are some necessary conditions that every applicant must meet. These are as follows –
- Applicant should be a resident of India.
- They should be within the age of 23 – 55 years.
- They should maintain a CIBIL score of 750 or above.
- He/she must be a salaried applicant working at a reputed public or private company or an MNC. Work experience of a few years is an added advantage.
Apart from the ones mentioned above, you should also check the minimum income requirements based on your city of residence. Note that self-employed applicants need to fulfil separate age and income requirements to apply.
In addition, you can also use a personal loan eligibility calculator to estimate the wedding loan amount you qualify for based on your monthly income, expenses, and city of stay. It will enable you to save a lot of time and energy that you can use to plan for your dream wedding.
Accordingly, there are several costs that you need to keep in mind while planning your wedding.
Keep the documents required handy
Given below is a list of documents that you need to provide while applying for a personal loan for the wedding –
- KYC documents like Passport, Voter ID, PAN, driver’s license, passport, or any other officially valid documents.
- Bank account statements for the last three months.
- Proof of income and employment – Salary slips and employee ID card
You should note that lending institutions may ask for any other relevant documents apart from the ones mentioned above.
Compare the fees and charges for the best offer
Apart from the wedding loan interest rate, lenders also levy several other fees on these advances. These include –
- Processing fees
- Bounce charges
- Penal interest
- Document/statement charges
- Part prepayment fees
When making lender comparison, make sure to check for these charges in detail to arrive at the loan option with the most nominal rates.
Furthermore, financial institutions such as Bajaj Finserv also provide pre-approved offers on personal loans to simplify and speed up the loan application procedure.
Besides personal loans, such offers can be availed on other unsecured credits like credit cards and business loans as well. You can check your pre-approved offer by entering only minimal information like your name and contact information.
Apart from the above points, you should also know the various ways in which a personal loan can help in planning a wedding. Nevertheless, before opting for a wedding loan, borrowers must do thorough market research and compare service terms and features offered by different lenders to arrive at the best loan option.