I need a loan for my marriage. What are my options?

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While weddings in most parts of the world are one-day affairs, in India, it is nothing less than festivities. Most Indian households view weddings as a major life goal and plan their finances around it. It was common among Indian parents to withdraw all the money from their lifelong savings account or exhaust their retirement fund to gift their children a big fat wedding. The wedding trends have only gotten bigger and more extravagant, but fortunately, there are also newer ways of financing them.

That’s right, marriage loans have now made it possible to have the wedding of your dreams on EMIs, just like you buy a house or car on EMIs.

What is a marriage loan?

Indian weddings involve countless traditions, and one may fall short of funds despite saving for years. This is when marriage loans come to your rescue. A marriage loan is a type of personal loan designed to help a person or family cover wedding-related expenses. You can use the loan money to pay for various expenses associated with a wedding, such as a venue, catering, jewelry, decorations, outfits, photography, etc.

Marriage loans are typically unsecured personal loans, so they do not require you to pledge any collateral security to avail of the loan. The loan amount and repayment terms can vary depending on the lender. However, they generally offer a fixed interest rate and repayment period, usually between one to five years. Lenders assess your financial standing and creditworthiness before approving your loan application.

Did you know?

Your credit worth can define the future of your dreams. From availing of lower interest rates on loans to securing better repayment terms, creditworthy person has an edge over others.

Do you think you are a creditworthy person?
Take this quick test and find out: https://www.onescore.app/blog/check-your-creditworthiness/

Benefits of a marriage loan:

1. Easy application with minimal documentation

You can apply for a wedding loan through the lender’s website or app within a few clicks. All you have to do is complete the KYC process and provide the necessary documents, and you can finish your applications without having to visit a bank.

2. No collateral needed

Since marriage loans don’t require you to pledge any asset or security, you can avail of funds without risking your assets. The application process is also much simpler than that in the case of secured loans.

3. Quick disbursal

Having a stable job and a credit score of 750 or above raises your chances of loan approval. Once your loan is approved, it takes only a few minutes to get the amount credited to your account. Quick disbursal is one of the biggest advantages of a marriage loan, which can be a great help to book vendors such as decorators, caterers, etc.

Weddings in India are grand events, and sometimes unexpected expenses may crop up. So it helps to have some ready cash.

4. Flexible EMIs

As a newlywed couple starting a new life, you will have to shoulder new financial responsibilities and goals. This may involve the cost of setting up a new house, vacation plans, gifting, etc. In such cases, readily available cash helps you manage your finances better. Wedding loans come with convenient repayment options and flexible EMIs, so you don’t exhaust your savings and investments. You can easily repay the loan over a few years, a little at a time.

Use the free EMI calculator on OneScore to figure out how much EMIs you will be paying, download OneScore now .

Eligibility criteria for marriage loans:

1. Age: The borrower must be between 21-60 years at the time of loan application.

2. Income: The income limit may vary from lender to lender, however, most lenders require you to have at least Rs.15000 net monthly income.

3. Employment status: You must have a steady source of income and meet the minimum income requirement.

4. Credit Score: A credit score of 750 & above increases your chances of getting a loan approval and might also get you better repayment terms.

How to apply for a marriage loan?

  1.   Make a wedding budget first and understand your loan requirement
  2.   Compare different loan options and lenders
  3.   Check your eligibility for the loan
  4.   Enquire about foreclosure charges
  5.   Review your other financial goals and plan your EMIs

Documents Required for Loan Application

•   ID Proof such as Aadhar card/ PAN card/ Passport/ Voter ID
•   Address Proof such as Electricity bill/ Telephone bill/ Gas bill/ Aadhar card/ PAN card/ Passport/ Voter ID)
•   Bank account statement for the last 3 months
•   Latest salary slips
•   Employment proofs
•   Latest ITR/Form 16

FAQs:

  1. Can I get a marriage loan if I have a low credit score?
You can opt for secured loans or explore new-age lending platforms. To know more, read read how to get a loan with low credit score.

  2. What is the maximum loan amount I can avail of for my wedding?
The lender may take into account various factors such as your credit score, income, employment status, and the lender’s policies. The loan amount may also differ according to the purpose of the loan, the repayment term, and the interest rate.

  3. What is the interest rate on wedding loans?
The interest rate on wedding loans is generally above 10%.

Planning a wedding is an exciting yet overwhelming task, ensure you start the financial planning early on. To build your creditworth and improve your prospects for loans, download OneScore.