It’s true that we all dream about wedding and try to save a lot for this occasion. For wedding a sizable amount is essential if you are planning to make it a grand occasion. Those who have not had enough time and circumstances to save for this occasion still have chance of making it a big occasion if you think of wisely making use of a marriage personal loan. There are many banks out there that are ready to offer marriage personal loans for those who are dreaming about their D day.
Tailor-made or customized marriage loans are offered by many banks to fit various needs of wedding scenarios. In India, marriages have always been a big occasion and there is a lot of money being spent on this grandeur celebration. Some of the key points to be considered during wedding times are to set right priorities, creating an estimate budget and try to get the best event planners to organize the event. Though there is nothing called as wedding loan, it is possible to take personal loans for wedding purpose. Based on the requirement bank will calculate the rate of interest and charges on personal loans.
By taking personal loan for wedding you are deciding to cover the wedding expenses with the help of personal loan. In such situations, it is always essential to discuss this loan with your to-be life partner. The personal loan commitment can range between 2 to 5 years based on the loan requirement. Such long tenured commitment has to be shared with the to-be partner before you apply for a personal loan.
How to get personal loan for wedding purpose?
- Good income level: Though you don’t have much savings, having a good income will help in getting loan for wedding requirements
- High credit score is somewhere between 700 and 900. The higher the CIBIL score is, easier it will be to get loan approved.
- Collect all documents that is essential for loan to avoid delays in getting it sanctioned
- Most of the banks offer personal loan for wedding purpose between 5 lakhs to 30 lakhs based on the individual’s need and eligibility.
Eligibility criteria to get personal loan for marriage:
- Minimum Age for applying personal loan 21 years
- Maximum Age to get personal loan 58 years for salaried employee and 65 years for self-employed persons. Of course, it is very rare to get married at these stages. But this can be used for your daughter’s wedding as well.
- Minimum Monthly Income should be Rs.15,000 and it depends on the age, current city where you live etc.
- The applicant should be either “ Salaried employees, self-employed persons or salaried professionals
- Minimum 2 years of work experience should be there if you are a salaried employee
- Good credit score of 700 will help in getting loan approved quickly. Credit score can be maximum up to 900.
Rate of interest in India on Personal loans for Marriages:
|Personal Loan Interest Rates June 2017|
|Standard Chartered Bank||10.99% – 14.49%|
|HDFC Bank||10.99% – 19.50%|
|ICICI Bank||11.00% – 18.40%|
|Kotak Bank||11.00% – 18.85%|
|Bajaj Finserv||11.99% – 16.00%|
|IndusInd Bank||12.99% – 20.00%|
|Tata Capital||13.00% – 21.00%|
|Fullerton India||14.00% – 37.00%|
|RBL||14.00% – 20.00%|
Documents required for personal loan for Marriage:
Valid Proof of Identity
- Permanent Driving License
- Voters ID
- PAN Card
- Photo Ration Card
- Aadhar Card
- National Rural Employment Guarantee Act (NREGA) Job Card
Valid Proof of Address
- Permanent Driving License
- Voters ID
- Electricity / Water / Telephone bill
- Ration Card
Domicile Certificate with address issued by the Municipal Corporation
- Registered Rent or Lease Agreement
- Birth Certificate
- Proof of Age
- PAN Card
- School leaving certificate
- Financial Documents.
- For salaried individuals – Salary slip latest copy of last 3 months plus Form 16
- For self-employed individuals – Audited / certified financials including P&L Account and Balance Sheet of the company and IT returns for last 2 years along with Bank statement for the last 6 months
How to repay personal loans taken for wedding quickly?
Here are some of the best tricks and tips to repay the personal loan which you would have taken during your wedding times. Taking loans is one of the biggest liabilities and if it is taken during the wedding times, it is better to clear it off as early as possible. When you have entered into new life reducing debts quickly is the best approach. It is true that with low salary, low salary hikes, it is not very easy to clear loans quickly. But there are some smart ways which can be considered to clear personal loan taken for wedding purpose.
- Have a budget for your expenses: This is one of the easiest approaches available in hand without relying on anyone else. You can simply create a budget to understand where there are more expenses and try to control it. Some of the common expenses post weddings which can be controlled is regular dining out, too many vacations, shopping, weekend outings and so on. It is essential to have these in your life post wedding but it should be more in a controlled manner. Overdoing any of these will start creating more and more debts.
- Looking options of wedding loan balance transfer: There are many banks that are ready to take up existing personal. But this option has to be considered only if the rate of interest and charges on the existing loan is high. While planning to do wedding loan balance transfer it is essential to keep in mind that balance transfer will incur additional transfer cost, processing charges, documentation charges and more. If the balance transfer is still helping you to reduce your EMI post these additional charges then it is a smart move.
- Make use of bonus for repayment: Those who are salaried employees can enjoy the benefit of yearly bonus. Some companies pay really good amount as bonus. Make use of these additional funding available for repayment of the personal loan taken for wedding. Even if you are able to just partly repay the loan with bonus, do consider the option as it will either reduce your EMI or will reduce the tenure of the loan.
- Get rid of low or no revenue generating assets: Those assets that are not generating any revenue or generating minimal yield has to be reconsidered. If you have a bike or car which is not being used, it is best to sale it to repay the loan instead of owning it can accumulating the depreciation on the same. The value of vehicles will depreciate year after year, thus if you are not using it- at least make use for repayment of existing personal loan taken for wedding.
- Soft loan option from friends and relatives: Getting soft loan from friends and relatives is again a best option as there will be no interest on the amount which you have borrowed and you can repay it as and when you have additional fund inflow. No interest, no processing fee, documentation and other charges.
There is nothing wrong in taking a personal loan to clear the wedding debts but doing it the right way and smartly repaying it as early as possible will make you feel it is not a burden. Healthy relationship has to be given more importance post marriage than what you give for money. Always find time to spend for each other and have an open conversation to maintain healthy relationship.
— Amrita Agarwal (@InvestorAmrita) July 3, 2017