Marriage is an important highlight in anyone’s life, and one wants to make it memorable. Sometimes, you may need some extra funds to plan your marriage day. From decoration to food for guests, several expenses are to be met during a marriage. You cannot cancel your wedding due to insufficient funds every time. Instead, you can opt for a wedding loan to cover the arrangement costs. Many people in India plan the perfect marriage by taking a loan from a reliable lender. Here are some important things to consider before getting a marriage loan in India.
What is a Marriage Loan?
A wedding loan can be counted as a personal loan taken to cover marriage day costs. A marriage loan can be offered by a bank, NBFC, or a digital lending platform. You can use the funds gathered by a marriage loan for wedding day arrangements. You can repay the marriage loan in small amounts at regular intervals. By doing so, you don’t have to postpone/cancel your wedding due to a lack of funds. Since a marriage loan is counted as a personal loan, it is collateral-free. You can use a marriage loan for any wedding day expense. You can use a marriage loan to buy jewellery for the bride or use it to book a wedding venue.
Things to Consider Before Securing a Marriage Loan in India
One should consider these five things before acquiring a marriage loan:
1. Marriage Loan Amount
Calculate all your budget requirements before applying for a marriage loan. Based on your wedding expenses, you can choose the amount of your marriage loan. You don’t want to apply for a marriage loan twice or apply with two different loan providers. It is why you should create a proper estimate of your loan amount before applying for it. Don’t go for a smaller wedding loan just because it was easily available. Many digital lending platforms offer marriage loans up to INR 10 lakhs. However, you need to have stable employment and a high credit score to get a marriage loan of INR 10 lakhs.
2. The Interest Rate of Marriage Loan
Many people choose a wedding loan because it was easily available to them. In the end, they get troubled with hefty interest charges of the marriage loan. While applying for an urgent personal loan, you should consider the interest rates. A reputed digital lending platform could offer you a marriage loan with an interest rate as low as 12%. For every instalment of your marriage loan, you will have to pay the interest charge. If you choose a marriage loan with a high-interest rate, you will end up paying a hefty amount to the loan provider. A little research before applying for a marriage loan can help you choose one with a lower interest rate.
3. EMI and Repayment Structure of the Marriage Loan
How much time is your loan provider giving to repay the marriage loan? You need to choose a marriage loan with a flexible repayment structure according to your repayment capacity. You can choose a digital lending platform that allows you to choose the EMI structure of your marriage loan.
4. Prepayment charges of the marriage loan
Consider you have taken a marriage loan to be repaid in three years. However, you end up repaying the marriage loan amount in only two years. Sometimes, loan providers apply foreclosure or prepayment charges when the loan is repaid before the due period. Choose a loan provider that allows you to prepay your marriage loan. Prepayment of the marriage loan can save you from additional interest charges.
5. Instant approval of marriage loan application
One doesn’t want to stand in queues to get a marriage loan. During an emergency, you need quick disbursal of your marriage loan. It is why you should rely on a digital lending platform to get an instant marriage loan. With a digital lending platform, you can skip the queues to get a marriage loan. You can get verified easily for a marriage loan via a digital lending platform.
Make sure that you read the eligibility conditions before applying for a marriage loan. Apply for an quick personal loan to plan the perfect wedding!