Marriages are dear to the bride and groom, their families, and of course, close friends and relatives. Indians celebrate this once-in-a-life experience going all in. You would want the same with your marriage. A top-class venue, good food, good flowers, designer clothes for every function, and a vividly decorated area for nuptials have to be there for your luxurious wedding.
But a wedding of a grand nature demands anywhere over 25 lakhs on average. Not everyone has that kind of funds lying around. So, you can pay a part of your wedding expense from your pocket and a part of it by taking a marriage loan.
To meet the financial needs of a wedding, various banks, non-banking financial companies, and online lenders offer various types of marriage loans that are specially customized for weddings.
Why marriage loans are important
Getting married is a momentous day for anyone; that’s why people celebrate that day every year as their wedding anniversary. A wedding is one of the nicest things as it starts a relationship that lasts for life and nurtures a family out of it. A wedding lays a foundation of shared responsibilities among partners.
Everyone desires a beautiful wedding; while some may have a certain idea in their minds, others have the complete vivid dream wedding setup in their mind. But what to do when all that you want for your wedding is adding up to a big total? And what to do when you do not want to make any adjustments and want your wedding as dreamy as possible?
It is not necessary that all the couples have adequate money to have their dream wedding. But that does not mean that they couldn’t bring to life what they desired for their most important day of life. There are many ways to make the dream wedding happen. Out of the many ways, one is taking a marriage loan.
A marriage loan is nothing but a kind of personal loan that can be used to fulfill any and all financial needs arising in a marriage. You can even get a marriage loan online from one of the best loan apps from the best lenders in the country. Various banks, NBFCs, and DSAs sell loans that are specially customized for marriages.
How the perfect wedding looks like
The idea of having grand luxe weddings has been there for decades. But nowadays, with the bride and groom taking most of the decisions on their weddings, they are a relatively more enthusiastic and exciting event. The bride and groom do not shy away from spending higher money to make their dream wedding plan possible. Events like a pre-wedding vacation with friends, pre-wedding sangeet, bachelor party, reception in a big hotel, celebrity performance, destination wedding, customized gifts for guests, classy catering arrangements, event managers, star photographers, etc., are getting commonplace as a part of wedding functions.
Below are the key things you must know about before taking out a marriage loan
What exactly does marriage loans entail: Marriage loans are similar to personal loans. In fact, you can avail of an instant personal loan from one of the best loan apps and tick off the reason for a loan as wedding expenses. Alternatively, you can opt for a customized marriage loan. Many lenders offer marriage loans of different specifications.
Repayment and EMIs: You must choose the repayment period and EMIs best suited to you for your marriage loans. The decision on the EMI amount and tenure of loan must be taken carefully. You must opt for an amount that you can easily repay. You can spend some time evaluating the terms and conditions of marriage loans across different lenders and financial services companies to make an informed decision.
Interest rates and processing fees: Banks and NBFCs levy high interest rates on marriage loans. Marriage loans cover different wedding expenses like the ones mentioned earlier. Typically, the interest rates for marriage loans may range from 10 per cent to 25 per cent as per your credit score, sources of earning, repayment history, creditworthiness, etc. Other than the interest rate, a processing fee between 1 per cent and 3 per cent is also applicable on marriage loans. Again, you can take instant loans and use them to pay for your wedding expenses.
Prepayment charges: Most lenders levy prepayment charges on wedding loans. If you have the complete funds in between your loan term, and want to prepay your loan before the completion of your lock-in period, lenders may charge around 5 percent as a prepayment penalty. They may give a reason for the charge that a diversion from scheduled payables and receivables tends to disrupt banking systems. Generally, marriage loans have a lock-in period of six months to a year.
Joint loan facility: Lenders offer joint loan facilities for marriage loans wherein the burden of repayment of a marriage loan is divided between both partners. With shared dependability, the joint loan affects the credit profile of both the associated partners. The partners have to manage the EMIs at the time of repayment deadlines.
Thus, marriage loans are a customized personal loan product you can take. Or you can take an online loan from one of the best loan apps available online and pay for your wedding expenses from that. Weigh the pros and cons of both types of personal loans and make an informed decision in taking a marriage loan.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs