Marriages nowadays do not mark an auspicious ceremony to be celebrated but an extravaganza hence seeming an impossible thing to bear the expenses. No one wants to settle for less, therefore, the solutions are all ready for you; marriage loans! In this exorbitantly growing market where everything is getting costlier each passing day; life is getting difficult for middle-income group people. Everyone wishes to make this big day memorable with everything set in place however in the flow of action, we forget to manage the finances. There steps in the need of marriage loan.
Why Apply for a Marriage loan?
Marriage is a big day everyone waits for and ends up spending more than one has thought of. It’s that one day of celebration that no one wants to compromise. From a grand marriage venue to its beautification, expensive wedding outfits to photography, every individual wish for the best arrangements. To meet such requirements and not to run out of finances, a person opts for such options to make his/her pocket easy and make the best arrangements possible.
Take care of the following
Decide your loan amount: Estimate your expenses accordingly decide on the loan amount. Do not overburden yourself.
Know the procedure well: Be clear on the procedure of the loan application and other terms and conditions.
Explore the available offers: Explore the market for the various offers available to make the right choice.
Terms, conditions and charges: Be clear and aware of the terms of a loan. Also ask for the hidden charges or any other charges apart from interest rates because some of the charges can be waived off.
Eligibility to Get a Marriage loan
Age: Usual age limit set by the banks or other agencies is 21 years (minimum) for some banks it is 25 years as well and the maximum is 60 or less.
Employment: The person must be self-employed for at least a year or salaried for 2 years.
Credit score: A credit score above 700 is expected to be maintained by the borrower in order to avail an easy loan. However, it may vary depending on the criteria set by the lender.
Income: A borrower must earn a minimum of 20,000 as its monthly income. Some banks may offer it on 15,000 also and some may want more than 20,000 as well. Therefore, it is subject to change depending on the lending organisation.
Loan amount: Marriage loan amount varies from 3 lakh to 20 lakh. Some banks may offer as high as 30 lakhs.
Duration: The tenure varies depending on the loan amount borrowed and the EMIs you decide upon. The maximum tenure is not more than 5 years, however, some might offer a longer time period.
All the above-mentioned parameters are subject to change as different banks have different criteria and some banks might not even count on some of these parameters. Hence look for the option that suits your needs the best and chooses accordingly.
Required documents for Marriage Loan
To confirm the identity and ensure safety, the bank requires certain proofs of documents before approving a loan. Here is the list of documents that are often required by the bank
Proof of identity: PAN card, Voter ID, Driving license, Aadhar card, Passport, Ration card.
Proof of address: Any document having your current address can be used as a valid of proof of address such as Rent agreement, DL, Passport, Voter ID, Aadhar card, telephone/electricity bill.
Age Proof: Birth certificate, class X passing certificate or any other document having your DOB.
Bank statements: This is a decision making a document for getting the loan approval at the earliest as the bank decides the borrowers’ repayment capacity and the also checks the savings the person has.
Salary slips: Last three months’ salary slip for salaried person.
Certified balance sheet: For self-employed
All to know about Marriage loans
Marriage loan has a lot of similarity with personal loans but stand true to their name as they are used for financing the marriage ceremony.
- Low EMIs therefore easy repayment
- Early loan approval, early disbursal
- Flexible duration of repayment
- Pre-payment option available
- Customised offers
- Interest rate varies from 10% to 20%. The range is variable.
- Minimal extra charges
- No guarantor
Marriage is considered an auspicious occasion hence there are lesser chances of rejection. Only if the banks find the borrower is a defaulter or the documentation is not correct would he reject the loan. If you foresee any chances of financial crunch, it is better to be ready in advance but plan your back-up for repayment that will make your life easier.