Weddings in India are a matter of prestige and people go beyond their means to pay for weddings. As it is the only occasion that proves the social strata of a person the amount spent towards weddings is pretty huge. This amount once spent cannot be acquired as the only return that it brings is the satisfaction of having performed a lavish wedding celebration. There are many major expenses that are part of a wedding. Wedding clothes for the bride and groom, jewelry, gifts for the visitors, paying for the venue, lavish spread of lunch or dinner, accommodation for the relatives etc. The expenses that are involved in an Indian wedding are never ending as meeting every need of every person who is part of the wedding is considered a ritual.
Compared to other countries, Indian weddings have large crowds and meeting the exorbitant needs of the other party can seem a cumbersome for a few. Banks and lenders extend the facility of wedding loans for those who wish to perform a wedding or sponsor a wedding.
Wedding loans are unsecured type of loans. A security or collateral wouldn’t be required for applying for a wedding loan. Filling an application form with attested copies of identification proof, age proof, address proof, bank statements and proof of income would be enough to apply for a wedding loan. Wedding loans are provided for the parents of the bride or the groom or to the individual who wishes to get married. The interest rate would be higher and can be repaid in EMIs.
There is a facility of taking a secured wedding loan too. A security would be required to get secured wedding loans. Commercial or residential property can be used to acquire wedding loans. The interest rate on secured loans would be far lesser. In case the loan applicant fails to repay the loan in the stipulated time, then the property would be seized as a repayment towards the loan.
Generally when applying for any loan the credit history of the applicant is checked. This would provide a history of banking record and the capability of repaying the loan. As wedding is something that can happen at a time when credit rating can be unfavorable, there is a facility of taking bad credit wedding loan. A person with bad credit cannot apply for a regular secured or unsecured loan. This bad credit loan is offered with very high interest rates which would compensate the risk of lending the loan.
Wedding loans are a huge relief for those who cannot use their fixed assets towards expenses. The moment the assets can be cashed, the loan can be repaid easily. The loan amount should be planned and accounted for. The amount of loan taken matters as it is borrowed money and has to be repaid in the term agreed. The greater the amount the greater would be the repayment amount as interest rate is added on to it. The income proof should determine the loan amount.