Marriage Loan in India: A Comprehensive Guide
What is a Marriage Loan?
A personal loan taken to fund the needs of a wedding or marriage is referred to as a marriage loan. A personal loan for wedding is an excellent way to not only take care of the wedding requirements but it is also the perfect way to manage your finances.
A marriage loan in India is one of the most common types of personal loan. There are many advantages to availing personal loan for wedding which is the reason behind the popularity of wedding loans. To reiterate in simple words, loans for marriage are usually taken in the form of personal loans to provide for the specific purpose of weddings and related expenses.
While discussing the topic of marriage loan in India, it is essential to delve deeper into the related facets like marriage loan eligibility, factors to consider, marriage loan interest rate, advantages and disadvantages, and even the process of how to get a marriage loan etc. So, here is a detailed guide on a marriage loan in India.
Advantages and Disadvantages of Wedding Loans
Before availing a marriage loan in India or a marriage loan scheme, it is important that you are aware of the pros and cons of the same. This will help you make an informed and educated decision which in turn can help with budgeting.
A few of the many advantages of a wedding loan in India are:
1. Availability of Bulk amount
A wedding requires huge funds because of the scale and importance of the celebration. Right from the decorations to the catering, you can take care of all of these expenses in an efficient way with a simple personal loan for wedding. You can get a bulk amount of funds with zero complications with wedding loans.
2. Repayment Spread over 3 to 5 Years
The maximum tenure of a marriage loan in India can even go up to 60 months. That is, flexibility in repayment is available. With this option, you can evenly pay the amount and interest in installments over a period of time. This also makes it budgeting extremely methodical.
3. An Unsecured Loan
One of the top benefits of a marriage loan in India is that there is no requirement for collateral or proof of security. That is, there is no necessity to pledge an asset or mortgage your asset in order to avail a wedding loan.
3. Instant Availment
One of the other major benefits of wedding loans is they take little to no time to process. That is, you can get the funds you require with zero waiting time. Without the complications of collateral and security, the processing time of a wedding loan in India is shorter.
Some of the disadvantages of wedding loans are:
1. Higher Interest Rates
Marriage loan interest rates can slightly be on the higher side because of their unsecured nature. Because lenders do not have any security, the interest rates on wedding loans are generally higher comparatively. You can avail a marriage loan without worrying about the high cost and expenditure because ZestMoney has nominal interest rates.
2. Stricter Eligibility Criteria
Marriage loan eligibility criteria in India are slightly more rigid compared to other types of loans. This is because personal loans for weddings or marriage loans do not require proof of security. As a control and check-and-balance mechanism, the criteria are more strict. With ZestMoney, the documents required are minimal and the process is smooth and fast.
Marriage Loan Eligibility Criteria, Process and Documents Required
If you have been wondering how to get marriage loan, it is crucial to know the eligibility criteria, marriage loan documents required, different marriage loan schemes, and the correct steps to follow in the procedure.
Process
The process for a marriage loan in India is more often than not online. The procedure to get a marriage loan is extremely simple and straightforward with ZestMoney.
This will broadly involve the following steps:
- Visit ZestMoney’s website and create an account by signing up. You can also sign-up by downloading the application. All you have to do is provide your personal details and verify your phone number.
- The next step in the process of how to get marriage loan is activating your credit limit. For activating your ZestMoney credit limit make sure you submit the necessary KYC documents.
- Once these steps are completed you can avail a personal loan for wedding purposes to cater to your individual needs and requirements.
If you are already a member of ZestMoney you can just activate your credit limit and avail your wedding loan! ZestMoney also has a marriage loan calculator to help you calculate your EMIs and interests with ease and simplicity.
Eligibility Criteria
Though the above may differ from institution to institution, the most common marriage loan eligibility criteria include:
- Should be an Indian resident
- Age should be within 21 to 65 years
- Minimum Monthly Income should be Rs 15000
- Should have a steady source of Income
Documents Required
Again, the marriage loan documents requirements may vary from lender to lender, but the basic ones are as follows:
- Proof of Identity – Any one of the following – Passport/Aadhar/Pan/Voters/Ration Card, Driving License
- Proof of Address – Apart from the above, Rental Agreement or Water/Telephone/Electricity Bills can be submitted
- Proof of Age – Passport/PAN Card/Birth Certificate
- Proof of Income:
- For Salaried Individuals – Form 16/Last 3 Months Salary Slips
- For Self Employed – Income Tax Returns for the last two years, P&L and Balance Sheet for two years and Bank Statement for the last six months.
Factors to be Kept in Mind While Applying for a Marriage Loan in India
- Penalty – Delay in Repayment will attract steep penalties from the lending organisation. To avoid these penalties you can use ZestMoney’s marriage loan calculator for your EMI amount beforehand. This will help you budget and manage your finances better.
- Risk of Over-Borrowing – A wedding calls for expenditure on a large scale, but at the same time, a correct balance should be achieved with the amount to be borrowed. Over-borrowing must be avoided.
These are the multiple facets of a marriage loan in India. Before availing one keep in mind the various advantages and disadvantages, factors to be considered, interest rates, etc. You can now easily get a marriage loan without the hassles of long procedures and waiting periods through ZestMoney by just signing up!