Why do you need a personal loan for wedding?

A grand once in a lifetime event calls for an even grander celebration. Marriage, being one of the most significant events in a person’s life, requires significant expenditure that can be covered through quick personal loans. Whether you’re planning a beautiful destination wedding in Santorini or an extravagant grand Indian wedding, personal loans can work in your favor.

Where can I get this kind of loan?

Most of the banks offer quick personal loans to meet your wedding expenses. Many banks in India like Axis bank, ICICI Bank, Tata Capital, and Bajaj Finserv offer personal loan for wedding.

How does it benefit me?

1. Personal loans for wedding have a low rate of interest at about 10.50% to 19.00%. Most banks offer Flexible EMI with longer Tenure of 1-5 years.
2. They are comparatively easy to apply for and can be obtained instantly. If you already have a bank account and verified documents, the process is easier. Some banks like HDFC give you a quick personal loan in just 10 seconds.
3. How you spend this money is completely your choice. You can use this to pay makeup artists, flight tickets for the wedding venue, dresses, buffet, pretty much anything you want.
4. The advantage of applying for wedding financing online is that you can use these unsecured loans at your discretion to pay for any wedding-related expenses. You can apply online at any time from any location.

What are the cons?

Loans aren’t ‘free money’. You have to pay it back along with interest. It’s an added monthly expenditure as you have to keep paying it off long after your wedding. The application and documentation may take up your precious time.

Can I get this loan?

To meet the eligibility criteria, you must have –

1. Minimum age: 21-23 years depending on the bank.
2. Maximum age: 58-65 years depending on the bank.
3. Minimum income requirement is around 15,000-25,000 per month.
4. Credit Score: Above 700. If your credit score is lower, you may have to pay a higher rate of interest. Things like how much debt you currently have, including in the form of student loans or a mortgage, can also impact how much you can borrow.

How to apply for personal loan for wedding?

1. Prepare your personal, financial, and employment details

To be eligible for any personal loan, you need to submit your identity proof and proper financial documents. Banks and lenders will verify these documents to confirm your eligibility.  This includes proof of income, bank statements, information about your other debt, your social security number, identity proof like aadhar card, voter ID, etc.

2. Decide the loan amount and tenure that you require

You need to calculate how much will your wedding approximately cost and how much of that amount you need to borrow. You also need to decide when and how much can you back and select your amount and tenure accordingly.

3. Submit these documents in the bank of your choice

Once these documents are verified, the bank representatives will guide you about how to proceed further. Once the forms are filled and the loan is approved you can avail the money and pay it off later according to the selected policy.

What are the alternatives to banks for this loan?

Nowadays various apps, websites and lenders also offer personal loans. Make sure these are trustworthy before investing your money.

Conclusion 

Make this decision with your partner and your family. Weigh the pros and cons, do your research and make an informed decision.