What is a marriage loan? Features, benefits & how to apply

Weddings mark a milestone, and you have every right to make them special. Nothing should hold you back from making your big day memorable. This is where a marriage loan makes a difference. It comes to your rescue as you deal with a myriad of wedding expenses like booking a venue, catering service, photographer, wedding planner, etc. It lets you fulfil your wedding aspirations when your finances fall short. Continue reading to learn about wedding loans in detail.

What is a marriage loan?
 

A marriage loan is a form of unsecured personal loan that helps you comfortably manage a wide range of wedding expenses. Most lenders sanction this loan swiftly with a flexible tenure for convenient repayment. In return, they impose a wedding loan interest rate on the borrowed amount. The exact rate depends on your eligibility, loan amount, and tenure. When handled responsibly, this loan serves as an easy solution for bridging the gap between your desires and finances.  

Key features of a personal loan for marriage
 

A personal loan for marriage is curated with features that simplify the borrowing journey and give you the maximum value. Find some of the common ones outlined below:

· Quick processing

Most personal loan applications, especially digital ones, are processed within minutes with instant funds disbursal. This lets you plan your wedding celebrations efficiently.  

· Collateral-free

As a personal loan for marriage is unsecured, you need not pledge any security. Instead, lenders assess your application purely based on your income stability and credit profile.

· Flexible repayment

The way you manage the loan repayments is in your control. Most lenders like IDFC FIRST Bank let you adjust the loan tenure between 9 to 60 months to suit your convenience.

· Considerable loan amount

Accounting for the range of wedding expenses, lenders let you borrow a high loan amount. Note that borrowing more, while convenient, adds to the interest cost.

· Minimal formalities

You are generally not pressured with excessive paperwork or details while applying for a wedding funding options. Loan providers judge your application based on basic details and documents.

Benefits of getting a wedding loan
 

With the mix of excitement and financial pressure that a wedding brings, you want to be fully prepared. This is where loan for wedding expenses makes sense. Here’s why opting for a wedding loan can be advantageous:

· Protects your savings

A wedding is financially demanding and can quickly drain your savings. With a marriage loan, you can put your savings to better use, like emergencies, investments, etc.

· Makes the wedding budget manageable

Instead of bearing the burden of paying for wedding expenses upfront, you get a breather with a marriage loan. It allows you to distribute the cost through manageable EMIs.

· Supports last-minute decisions

Your guest list suddenly expands, or perhaps the wedding outfit exceeds your budget. Such last-minute expenses can quickly blow up your budget. Wedding loan eases your load with quick access to funds.

· Helps boost credit score

Contrary to the negative connotation, borrowing is an opportunity. When you repay your marriage loan on time, you build a positive credit history. This makes it easier to get future loans.

· Funds varied expenses

Given the sizeable loan amount and unrestricted end-use, a personal loan for marriage lets you cover all kinds of pre- and post-wedding expenses.

Eligibility criteria for a marriage loan
 

Lenders evaluate applicants based on these common criteria:

· Age

You shall fall within a specific age range, such as 21 to 60 years, as they reflect active earning years.

· Income stability

A steady income means you can comfortably contribute to EMIs. Hence, your income and the stability of its source, employment or business, are assessed.

· Credit score

A good credit score, above 750, depicts you as a responsible borrower. It represents a positive repayment history. Hence, lenders prefer high-credit-score holders.

Note: The eligibility criteria vary across lenders based on their policies.

IDFC FIRST Bank offers marriage loans starting at 9.99% interest with zero foreclosure charges. The CIBIL score required is 710 and above.

Documents required for a personal loan for marriage
 

Lenders verify the details in your loan application through supporting documents. They typically ask for:

· Identity proof: PAN/Aadhaar/ Voter ID/ Valid Passport

· Address proof: PAN/Aadhaar/Utility bill/ Telephone bill

· Income proof: Latest salary slips, bank statements, and ITR filings for salaried applicants. ITR, the last two years' balance sheet and profit and loss statement for self-employed individuals.

Documentation is often extensive in offline applications as opposed to digital loans.

FIRSTmoney personal loan by IDFC FIRST Bank requires zero document uploads or paperwork. All you need is your PAN and Aadhaar number for application and your original PAN card to be displayed during the video KYC.

Step-by-step application process for a marriage loan
 

Most loan applications today are processed digitally. The ease they bring leads to a stress-free and convenient experience. The process involves these simple steps:

1. Compare loan offers

Due to high competition in the lending space, most loan providers offer competitive interest rates, low charges, and other benefits. A bit of research helps you identify such offers.

2. Check eligibility

Once you settle on a lender, check if you meet the eligibility criteria and borrow accordingly.

3. Fill out the loan application

Input basic details such as your name, age, mobile number, income, etc., accurately.

4. Submit documents

Complete your application by uploading the required identity, address, and income documents. Some lenders may also simplify this via video KYC.

You can skip the paperwork with digital-first personal loan options like FIRSTmoney by IDFC FIRST Bank.

5. Receive the loan amount

Upon successful verification of your eligibility, lenders credit the loan amount in your account within minutes.  

With a FIRSTmoney smart personal loan, you can get the funds in your bank account in as little as 30 minutes.

Final words
 

Amidst the emotions and chaos surrounding the wedding, you get the needed financial support with the wedding loan. It helps you stay on track and avoids unnecessary strain. IDFC FIRST Bank takes the appeal of this loan a step ahead with value propositions like an interest rate starting at 9.99%, zero foreclosure charges, multiple on-demand loans for additional funds, and 100% digitised processing. The documentation process is also simplified through video KYC and PAN.

Leverage these perks and apply confidently for a fuss-free wedding.