A wedding is always an occasion to remember. It is more so if it is your big day. Lots of planning and money goes into a dream wedding. Spending your savings will disturb your investment planning, and borrowing from family or friends requires a good relation with them and repayment on their terms.
But don’t worry. You still have an option which is to borrow from NBFCs. These lenders offer a variety of loans. A personal loan for wedding is a good funding scheme for your dream wedding.
Personal loan for wedding
A personal loan is a funding mechanism which one can avail with minimum eligibility criteria documents. One can use these funds for any purpose or end-use. It is an unsecured loan which comes with a lower interest rate, flexible tenure and pocket-friendly EMI.
Any individual, is eligible for a personal loan for wedding.
- Who is a salaried or a businessman,
- 21 to 60 years of age,
- a resident of India, and
- earning an income sufficient as per the lender’s criterion,
- having a work experience of a minimum of two years if you are a salaried individual
- five years of experience as a self-employed business owner
- a good credit score
Documents for availing personal loan
Your loan for the marriage will get approval only after the lender reviews some records.
- Proof of age, address and identity
- Account statements for the last six months from the bank
- Statement of income
- Income tax return statements
- Credit score report
You can decide your eligibility yourself by using a personal loan eligibility calculator which is available on the lender’s website.
Factors you must take into consideration while applying for a personal loan for wedding
Before you plan to get a loan for your wedding, pay attention to these factors:
- Personal loan interest rate
Different lenders have different interest rate to offer. The interest rate depends upon your income, credit score, your work experience, work type, your current debts, and capacity to repay. A loan with the maximum loan amount at the lowest interest rate is always desirable.
- Loan expenses
Every loan has some costs in the form of loan processing fees along with other charges. A processing fee is a one-time expense which varies from one to the other lender and is equal to some percentage of the loan amount. Additional costs like stamp duty, the penalty for late payment, charges on cheque return, insurance charge, etc. are also essential to consider while selecting a lender to avail a personal loan for wedding.
- Tenure of the Loan
Wedding personal loan has a maximum term of five years. If you choose to reduce the tenure, your EMI will increase and vice versa. Hence, you must select a tenure that results in an EMI which you can afford to pay every month.
- Flexibility in repayment
Repayment flexibility is a desirable criterion in a loan. The lender should not charge any fees for foreclosure of a loan amount; neither should it charge any late payment fees. It is advisable to maintain a regular repayment habit as it will positively affect your credit score.
- Excellent Customer care service
Select a lender who can provide excellent customer care services during and after the loan processing.
- Agreeable Terms & conditions
Read all the terms and conditions of the lender regarding loan before going for it. It can help in making the rules clear and avoid future misunderstanding.
Availing a personal loan for a wedding through online mode makes the process fast, and the loan amount will make your D-day the most memorable event of your life.