Weddings are the most significant milestones in one’s life, especially in India, where they are planned in grandeur and majesty. The expense incurred in planning a wedding at times is more than the feeling of happiness that comes with it. For the majority of the population barring those handful of working families, especially those working on tight budgets, the Indian wedding budget in the middle class ends up being an obstacle. A wedding personal loan comes to the rescue and allows you to enjoy your wedding without making any sacrifices on vital details. Here, we will talk about eligibility criteria, documents to be submitted, and procedure to avail a personal loan for your wedding. Whether you are going for a simple ceremony or an overboard wedding, this article will help you in availing the wedding finance easily.
Why Avail a Personal Loan for Wedding?
Weddings require thoughtful spends, from venue booking and catering to photography, invites, bridal dress, and the rest. Because inflation never leaves, even a modest wedding will dent your finances. Middle-class families barely have the ability to deal with these costs on a lean marriage budget. Years of savings may not be able to deal with the rising demands of a wedding today. This is why most individuals opt for personal wedding loans. A personal loan for wedding can provide you with instant financial relief and allow you to create memories that will last a lifetime without exhausting your savings.
Advantage of a Wedding Personal Loan
With a personal loan, there are many benefits while searching for cash for your wedding:
Flexibility of Use: Unlike car or house loans where one has limited usage restrictions, personal loans may be used for any expense, and therefore they are suitable for wedding expenditures.
Quick Approval: Personal loans have been utilized by lenders to satisfy one’s urgent financial requirements. At the time of application, the approval process is usually speedy.
No Security Necessary: The personal loans are largely collateral-free and thus no requirement to place any asset or property under lien as security for the loan.
Reasonable Repayment Schedules: The loans have reasonable repayment schedules of 12 to 60 months, where lenders can repay whenever and wherever they feel like.
Instant Cash Facility: Instant cash facility is available by securing a personal loan, thus your Indian middle-class wedding budget is easily sufficient to meet all your needs without cutting back on anything.
How Much Can You Avail as a Wedding Loan?
The amount of wedding loan that you can avail as a personal loan will depend upon such factors as your income, current debt, credit rating, and repayment ability. Generally, a personal loan is granted by lending entities for a period ranging between INR 50,000 and INR 50 Lakh. One needs to plan a wedding budget very judiciously and come down to only one necessary amount. It is quite normal for a middle-class marriage budget in India to apply for loans amounting to INR 2 Lakh and INR 10 Lakh, depending on how much would go for decorations, food, guests, and rituals.
Eligibility Criteria for a Wedding Personal Loan
The conditions of eligibility for a wedding personal loan by different banks and financial institutions may vary. The common terms are as follows:
Age: The standard requirement of all lenders is that the applicants must be between the ages of 21 to 60. The age criterion may be relaxed to 65 years for salaried individuals by some banks.
Income: The potential applicants must have a steady income. The monthly minimum income for those with salaried employment ranges from INR 15,000 to INR 25,000, depending on the lender. A self-employed person would be asked to submit proof of business income sufficiency for being eligible for the loan.
Employment Status: Salaried professionals or fixed-income self-employed individuals are the typical targets of personal loans.
Credit Score: Credit of 700 and above is more ideally desired for a personal wedding loan. A better credit score not only gives higher hopes of approval, but it can also ensure good interest rates.
Indian Residency: The applicant should be an Indian resident or citizen with confirmed documents.
Documents Required for a Wedding Loan
When you take a personal loan for your wedding, you will be asked to provide the lender with certain documents for verification. Make sure you have the following arranged:
1. Identification proof
Aadhaar card
Passport
Voter ID
PAN card
Driving license
- Proof of residence
Aadhaar card
Passport
Rental agreement or bills (electricity/water/phone bills) - Income proof
Recent salary slips (for salaried individuals)
Bank statements (for self-employed individuals)
Income Tax Return (ITR) or Form 16 - Employment proof
Offer letter by your employer or employment certificate - Photographs
Passport-sized photographs may be required when applying for the loan. - Loan Application Form
Completely filled loan application form provided by the lender.
How to Apply for a Personal Loan for Wedding
It is an easy process to apply for the wedding loan. Follow the step-by-step process below:
Research and Compare: Go ahead with your search about the different banks and lending institutions concerning the interest rate on credit, the processing fees, and the period of repayment. Compare all the prices and take the best one that suits your needs.
Check Your Eligibility: Use the eligibility calculator given on lenders’ websites and check if you are eligible for any personal loan.
Submit the Application: Fill your loan application form either online or offline with genuine details. Submit all documents required.
Loan Approval: Once the lender verifies your application and documents, they will ascertain your creditworthiness. If it is fine, your loan will be sanctioned.
Disbursement of Funds: After approval of the loan, the loan amount shall be credited to your registered bank account.
Tips to Manage Expenses Under a Middle-Class Marriage Budget in India
Prioritize Spending: Prioritize your priority items. For example, leave catering and guesthouse stay on the list.
Bargain with Vendor Discounts: Bargain with vendors for the best venue, flower, photo, and attire prices.
Rent Instead of Purchase: Bridal attire, decorations, and accessories can be rented to cut expenses significantly.
Simplify the Menu: Instead of having a large banquet, keep quality and flavor intact with a simple menu.
DIY Décor: Venue décor takes up most of the cost in Indian weddings. Try using social media resources to look for inspiration for DIY décor in order to cut down costs without sacrificing style.
Things to Keep in Mind Before Taking a Personal Loan for Wedding
Interest Rates: Compare interest rates with other lenders to make it more pocket-friendly.
EMI Calculation: Calculate your Equated Monthly Installment in the EMI calculator with reposited value against your loan amount, the tenure of loan, and rate of interest.
Loan Tenure: A repayment tenure is best chosen in consonance with your EMIs on a monthly basis and your cash flows.
Hidden charges: Do watch out for any hidden fees-these may include processing fees, prepaid fees, etc.
Avoid Over-Borrowing: Borrow only what you need for your wedding expense. Over-borrowing puts the finances under extra burden in the repayment stage.
Conclusion
A wedding is a once-in-a-lifetime occasion, and you will need to be in a position to extract the most out of it without being held back by budget constraints. If the Indian wedding budget is too small for you, then a wedding loan could just be the balm to plug the gap. If things go right, if you pick the right sort of loan, and work your budget accordingly, your dream wedding can go ahead as planned. Don’t skip good research, good comparing of loans, and ensuring the EMI amount is within your financial affordability limit.
