10 Dec Marriage Loans – Is It a Good Way to Cover the Wedding Costs?
Wondering how to pay for your wedding? You have the option to take out marriage loans. Indian weddings are famously extravagant with countless customs and rituals. The various ceremonies can last anywhere from 3 to 5 days. Needless to say, all of it costs a significant sum of money. Though you can have a wedding at any budget, if you or your partner has an expensive taste, you should be prepared to shell out the big bucks. So, what happens when you are short by a few thousand rupees? You can consider taking out a wedding loan to cover the deficits.
What are marriage loans?
If you have never heard of marriage loans before, there is a reason for it. There is no line of credit specifically meant for weddings. Traditionally, borrowers go for personal loans when it comes to funding wedding expenses. Therefore, in essence, the marriage loan process is similar to taking out a personal loan. Eligible borrowers may not have difficulty getting an instant personal loan for their wedding. However, many financial experts advise against taking out marriage loans. The reason is simple. Getting a loan is a significant responsibility and you should consider it as a last option. The same thing goes for using credit cards for wedding expenses. That is because credit cards are often more expensive than marriage loans.
Popular marriage loan options you can consider
When looking for marriage loans, you are sure to find a number of popular options. Making a choice may seem difficult. However, with proper research and understanding of all your options, you should be able to arrive at a sound decision. Before you start comparing marriage loan interest rates from various providers, check out the following ways you can get funds for your wedding.
Online personal loan:
Thanks to online lenders, personal loan apps, and lending platforms, getting loans has become fairly easy. You can fill out a quick application online and get the approval fast. There are many online lenders out there who are willing to approve personal loan applications of eligible and responsible borrowers. These loans typically provide a substantial sum of money at affordable interest rates and charges. The tenure for such loans may last anywhere from a few months to a few years. You will need to repay the loan in fixed monthly instalments.
Home equity loan:
You can take out a loan against the equity of a residential or non-residential property. The loan amount will be decided based on the current market value of the equity. Remember that it must be a freehold property with complete construction. You would need to provide a marketable and clear title for the property as well. Before taking out a home equity loan, make sure to consider the risks associated with it. Since your property acts collateral for the loan, you will risk losing the property in the event of non-payment or default.
As mentioned above, paying for your wedding with your credit card may not be the best idea. However, if you are out of options and are not able to find good marriage loans, you may consider credit cards as the last resort. If you are confident in your repayment capacity, using your credit card may actually offer some benefits. For example, you can earn points and protect yourself from frauds by using your credit card.
Marriage loan eligibility
If you have already decided to go for a marriage loan, make sure to find out if you are eligible for it. Different lenders have varying eligibility criteria for the loan products they offer. Before you apply for a particular loan, make sure you fulfil their requirements. Here are the common qualifying criteria that most lenders put forth for marriage loans:
Though the minimum age for marriage loans is 21 years, banks prefer the applicant to be at least 23 years old. The maximum age for salaried individuals is 58, whereas, self-employed individuals can apply up to the age of 65 years.
Net monthly income:
To be eligible for marriage loans, you need to show a minimum net monthly income. The exact amount may vary from one lender to another. However, it ranges between Rs. 15,000 and Rs. 25,000.
Both salaried and self-employed individuals can apply for marriage loans. You must have a stable and regular source of income with work experience of at least 2 years. If you are a salaried individual, you must have worked with your current employer for at least 1 year.
To avail a loan for marriage, you must have a CIBIL score of 700 or above. Most traditional lenders such as banks prefer a credit score of at least 750. You may be able to find personal loans for low CIBIL scores. However, those loans typically have steep interest rates.
So, now that you know the essentials of marriage loans, you may start looking for potential lenders. Make sure to choose a legitimate and responsible lender for your needs.