A marriage is a significant milestone in life, filled with joy, celebration and memories to be cherished forever. However, organising the wedding ceremony and other related costs could be financially burdening. Whether you’re a parent looking for a loan for your child’s big day, or you are looking for a marriage loan for your own wedding, this article will help you with all you need to know about marriage loans.
Let’s explore everything about marriage loans, the eligibility criteria, application process and insights into planning a wedding with a marriage loan.
A marriage loan is a kind of personal loan intended to help borrowers who need money to pay for wedding-related costs. Whether arranging for venue bookings, catering, decorations or purchasing bridal attire and jewellery, a marriage loan can help you easily manage all the affairs related to the special occasion in your life.
In India, you can get a collateral-free marriage loan ranging between ₹50,000 and ₹50 lakh, depending on your eligibility, with flexible repayment tenures of 12 to 60 months. This flexibility makes it easier for couples and families to manage their finances without the burden of upfront costs.
To be eligible for a marriage loan, certain criteria need to be met:
Age and citizenship: The applicant should be a resident of India and be between the ages of 21 and 60 years.
Employment: The borrower must have a steady source of income and be either self-employed or salaried. Some lenders may require you a steady employment for a certain number of years.
Creditworthiness: A good credit score from leading credit bureaus is generally preferred, indicating a track record of responsible credit behaviour. A higher credit score can lead to better interest rates on the marriage loan.
Existing relationship with the bank: When evaluating loan applications, some financial institutions could provide preference to their current clients. For example, select customers of a bank can get instant personal loans in seconds without any need for paperwork through a completely digital process. Similarly, for another bank a salary account holder may need a minimum monthly income of ₹25,000 for marriage loan, while a non-account holder may need to have a minimum monthly income of ₹50,000 to be eligible for a marriage loan.
The interest rates for marriage loans vary significantly across different banks and financial institutions, usually ranging between around 11% and 40% per annum. Factors such as the applicant’s creditworthiness, the lender’s policies and the prevailing market conditions can influence these rates. So, it’s very important to compare offers from different lenders to secure the best deal.
For those looking to apply for a personal loan, Moneycontrol offers a 100% digital and instant personal loan, now available on their platform. The process is straightforward — no paperwork, low processing fees and instant disbursal directly to your bank account. Get your loan in just three easy steps — enter your details, complete the KYC and set up your EMI repayments.
Applying for a marriage loan is very easy, thanks to the convenience of internet banking and online personal loan apps. Here’s the process:
Research and compare: Explore different financial institutions and their offerings. Compare interest rates, loan amounts and tenure options before picking the most suitable loan provider.
Submit the documents: You then need to submit documents such as Aadhaar card or passport as identity proof, address proof, and your income proof, which could be salary slips or bank statements, and your photograph.
Apply online: To access an online loan application form, go to the lender’s official website or use their mobile banking app.
Fill in the details: Enter your personal, employment and financial information accurately in the application form.
Submit documents: Upload the scanned copies of the required documents as per the lender's instructions.
Disbursement: The lender will review your information and determine your eligibility after you have completed the application. Once approved, the loan amount will be disbursed straight into your bank account.
The marriage loan approval time can vary from lender to lender. Generally, with the digital application process, approvals can be received within hours. If your documentation is in order and your credit score is satisfactory, many lenders offer instant approvals. For instance, Moneycontrol provides access to personal loan offers of up to ₹15 lakh in partnership with four lenders, making it a swift option for those in need.
Benefits of a marriage loan
Availing a marriage loan offers several advantages, making it an attractive option for individuals planning weddings.
Financial flexibility: A marriage loan provides the necessary funds to cover various wedding expenses, allowing you to plan and execute your dream wedding. Additionally, the funds come with no end-use restrictions, thus allowing you to use them for other expenses as well.
Custom loan amount: You can select the loan amount that best fits your needs and qualifications. You can check how much you’ll need to pay back for what you borrow by using free personal loan EMI calculators to estimate the monthly payable amount.
Flexible repayment options: Marriage loans usually come with flexible repayment tenure options, allowing you to choose a repayment schedule that aligns with your financial capabilities and preferences.
No collateral: Personal loans for weddings are unsecured loans and can be obtained without any security or collateral.
Making your dream wedding a reality
Now that you know about the eligibility criteria and application process for a marriage loan, let’s explore some additional tips to avail a hassle-free marriage loan:
Plan ahead: Start planning for your wedding well in advance. This will allow you enough time to look into other loan possibilities and choose the best option.
Determine your budget: Before applying for a marriage loan, create a detailed budget for your wedding. Consider all expenses, including venue, catering, decorations, attire, jewellery and other miscellaneous costs.
Choose the right loan provider: Selecting a reliable and reputable lender is crucial. Look for financial institutions that offer competitive interest rates, flexible repayment options and excellent customer service.
Understand the terms and conditions: Before signing any loan agreement, carefully review the terms and conditions. Pay attention to interest rates, processing fees, prepayment penalties and any other relevant clauses.
Maintain a good credit score: A healthy credit score improves your chances of getting approved for a marriage loan. Prioritise timely payments of existing debts, avoid defaulting on loans and keep credit card balances in check. This shows responsible credit behaviour and enhances your creditworthiness.
To conclude, by understanding the eligibility criteria and application process, you can easily apply for a marriage loan and secure the necessary funds to make the wedding memorable. Remember to choose a reliable lender, assess your financial capabilities and plan your wedding budget wisely.
If you’re ready to explore your options, digital platforms like Moneycontrol could be helpful in finding the suitable loan offers. With instant loans, competitive interest rates starting at 12% per annum, and no hidden charges, it’s a great platform to turn your wedding dreams into reality.
Summary
A marriage loan offers flexibility to cover wedding expenses without dipping into your savings. With competitive interest rates and flexible repayment options, marriage loans can make your big day memorable and manageable.
Disclaimer
This piece/article was written by an external partner and does not reflect the work of Moneycontrol's editorial team. It may include references to products and services offered by Moneycontrol.
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