Personal Loan to Fund a Wedding
Wedding is a once-in-a-lifetime event, and we all want to make it a truly memorable occasion. But, these are becoming increasingly expensive, and the pressure to hold a big fat wedding is building up continuously on parents. Sometimes wedding expenditures exceed the budget, which is why people should consider getting a personal loan for a wedding. Personal loan for a wedding is the best option to cover wedding expenses.
What is a personal loan for a wedding?
As there is no restriction on end use of a personal loan, it can be borrowed in any financial emergency and customized as wedding loans, home renovation /renovation loans, holiday loans, etc. Hence, a personal loan dedicated to wedding expenses is known as a wedding loan also. This loan is lent to meet your wedding expenses such as for purchasing branded outfits, jewelry, printing wedding invitations, hiring the best caterers, and booking the most beautiful venue, etc.
Most banks and financial institutions are offering a wedding loan under the umbrella of personal loans. You can check and compare the rates of interest from all lenders.
Eligibility of a personal loan for wedding
Age Limit: Anyone aged between 21 to 58 years can apply for a wedding loan.
Monthly Income: While income varies from lender to lender, anyone with a minimum salary of 20k can apply for a personal loan for wedding. However, you can add an earning co-applicant if your salary is not sufficient to meet income criteria.
Employment Status: Any employed person and self-employed individual alike who has a regular income for a minimum of 2 years can apply for a wedding loan. The applicant should also be getting a steady income from the current employer or current business for the last 1 year.
Good credit score: CIBIL score is one of the most critical factors to get your personal loan application approved. A good credit score ranges from 750 to 900; however, some lenders approve a personal loan for a CIBIL score of 720 or above.
Existing EMI: If you have other existing EMI, you should be able to prove that you have sufficient income to repay your EMI of a personal loan.
Note: All lenders have their own set of criteria vis-à-vis credit score, age, income, etc.
Documents required for a personal loan for wedding
Documents required for a salaried individual are as under:
- Identity proof: One of these documents: Voter’s identity card/driving license/PAN card /Aadhar card /passport etc.
- Proof of residence: One of these documents – telephone bill/electricity bill /water bill /rent agreement etc.
- Income proof: Salary slips for the last three months/bank statement showing salary being credited into the applicant’s account
- Employment proof: At least 2-year employment and at least 1-year employment in the current company
- Photographs: Two passport size photographs
Document required for the self-employed person is as under:
- KYC (Know your customer) documents: KYC documents include identity proof, residential proof, date of birth proof
- Proof of residence: One of the utility bills – such as electricity bill, telephone bill, water bill – for the last three months
- Official proof: Proof of office where the business is being run is mandatory
- Evidence of continuity of business: Testimony ensuring that the business is continuing for a certain time is an essential part of documents
- Income proof: Financial report for the last 2-year audited by a competent person like CA
- Bank statement: Business bank statement for the previous six months is necessary
Wedding loan interest rate and other charges
Rate of interest is one of the most important considerations that a buyer should take account of while applying for a personal loan. Interest on a wedding loan varies from lender to lender. Generally, personal loan interest rate offered by lenders ranges between 10% to 36%, depending on a variety of factors like credit score, income, employment status of the borrower, etc.
Apart from the interest rate, a personal loan has various additional charges like processing fees, late payment fees, foreclosure charges, etc. Therefore, you should pay attention to additional charges while applying for a personal loan to ensure how much your loan would cost you.
Why should you consider getting a personal loan for wedding expenses?
Minimal paperwork: You have to undertake minimal documentation while applying for a personal loan.
Instant approval: Mostly, lenders approve a personal loan within 48 hours of application. Once loans are approved, it takes 2 to 5 days to get it disbursed.
Flexible term: Generally, lenders offer a personal loan for a period of 12 to 60 months. Hence, you can choose your repayment cycle as per your convenience and cash flow.
No guarantor or security required: Personal loans are unsecured loans and approved without any collateral and guarantor.
Reasonable interest rate: Rate of interest for a personal loan is much cheaper than for a credit card. If you want to get a big amount of cash for a more extended period, more than one year, a personal loan is a better option than a credit card.
Acquire a wedding loan is very easy – you need to have a good CIBIL score, income, and employment status. You should check and compare the rate of interest rates, documentation charges, and tenure to get the best deal.