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Is availing a Marriage Loan a good idea ? – Here is the Answer.

Is availing a Marriage Loan a good idea ? – Here is the Answer.

Why Use Marriage Loan to
Fund a Wedding?

 A
marriage in family is synonymous with joy and festivity. But, in India, it is
also synonymous with huge expenses. This is the reason why you can’t quite have
your fair share of joy if you don’t have the funds to cover for the expenses.
The expenses may ‘out-budget’ you any time and a fund crunch may come creeping
in to dampen your cheerful mood.

What’s the way out in such a
situation? A marriage loan, of course! It can be a wonderful option for
managing both your planned and unplanned expenses during a wedding.

Marriage Loans

Wedding loan is a purpose of personal loans with an interest rate that’s based on factors such as
your credit score, whether they are secured or unsecured, and the amount of
money you are looking for borrows. Many lenders are available in the market
with unique offers. 

Amount – You can easily avail loan from Rs 50,000 to Rs 30,000,00

CIBIL Score – Above 700 makes a winning marriage loan application.

Eligibility – A person earning as low as Rs 15,000 can apply for and
get a marriage loan. The age of the applicant should be between 21 to 60 years.
Another important criterion is employment stability of 2 years.

Pros of Marriage Loan

  • Flexibility in use. Yes, as per your
    convenience, you can outlay the money for  various marriage purposes
    like food, decoration and orchestra booking.
  • You get approval quickly for these types of
    loans.
  • You can easily choose tenure to repay the
    loan amount, from 1 to 5 years.
  • No security is needed to avail the loan,
    you can easily avail the loan without giving any security. It is good for
    those who are not able to fulfill this formality. 
  • If you have a good credit score, you can
    enjoy the lower rate of interest it shows better previous financial
    records. Banks don’t want to lose customers with good credit scores,
    that’s why they give a good rate of interest to those who are having good
    repayment capacity. 
  • A marriage loan can help you build credit
    portfolio. 
  • It is also advantageous for you to know if
    you have the ability to pay the loan within the shorter period of time
    because then you would be able to pay the less, interest will be lower for
    a shorter tenure. 
  • It leads to fast remittances to your bank
    account.
Cons of
Marriage Loan
 

  • As they are unsecured loans, hence lender
    charges you with higher interest.
     
  • As compared to the other loans the loan amount that
    you get is not so high because of the fact that these loans are unsecured.
     
  • You need to pay more rate of interest if you
    select a longer tenure to repay the loan.  If you avail them for a longer
    tenure, automatically the interest rates will increase.
     
  • There is a lack of flexibility is there when it
    comes to buying these unsecured loans, being offered to the applicant.
     
  • These unsecured loans are supported only by
    trust; hence you are on the more risk from the lender’s point of view.
     

How to choose wedding loans?

 Your decision to take Marriage loan should be based on the
following factors:
 

 Interest Rate: The interest rate is one of the most important factors to be
taken into consideration while taking any type of loan. There are loans
available for individuals with bad credit as well. Interest rates determine
financial planning. And how much total money required.

Loan tenure: You can easily choose tenure to repay the loan amount, from 1
month to 6 years. You need to pay more rate of interest if you select a longer
tenure to repay the loan. Your loan tenure also plays a key role. Higher the
tenure lower would be your monthly payments.

Loan Amount: Minimum loan amount should be applied to manage all the expenses.

Hidden charges with
interest rates:
Banks also charge
various fees which are also taken into consideration while selecting for the
wedding loans. These include:
 

Processing Fee: This typically is in the range of 2%-3%.                                                                                                       
Pre-payment penalty
EMI bounce charges
Late payment penalty

Popular
Banks offering Marriage Loans –

Almost all the banks and non-banking
financial institutions are offering Marriage Loans under Personal Loan
scheme.  Among several lenders, SBI, HDFC, ICICI, Bank of Baroda are
prominent.

We
will discuss in brief about two of the most popular marriage loans here-
 

A) SBI Marriage Loan 
Some notable features of the SBI Marriage Loans are –

      
     B)  HDFC Marriage Loan 
      Some notable features of the HDFC Marriage Loans are- 

  •     HDFC marriage loans are highly flexible. You can avail such a loan
    for any wedding related expenses. No restrictions are imposed on the intended
    use of the funds.
     
  •     You can avail the funds instantly. If you are an HDFC customer,
    you can avail a pre-approved loan in just 10 seconds. The funds will be
    disbursed to your account with no or little documentation. You can get this
    loan under 4 hours if you are not an HDFC customer.
     
  •         For availing this loan, you need to be in the age group of 21 to
    60 years.
  •     If you have a good credit history, an HDFC marriage loan will be
    available to you at highly competitive interest rates( as low as Rs 2187 per
    lakh)
    .
  •     You can repay the HDFC Personal loan in affordable EMIs over a flexible loan tenure of your choice. As
    an usual practice, you can choose any tenure in the range of 1 to 5 years.
     
  •     You
    are not required to pledge any security/collateral.
     
  •     The
    HDFC Bank levies a processing fee of 2.5 % of the loan amount.


 GUEST AUTHOR NAME : RAHUL KUMAR

 EMAIL: [email protected]



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