Personal Loans for wedding expenses

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.

wedding loan

Apply Personal Loan for Wedding

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.

A brief guide about Personal Loans

Are you in urgent need of finances but don’t know what to do? Is the need short-term? What are you waiting for then? The best way to deal with this kind of a situation is to apply for a personal loan. A personal loan is a loan given by a bank or financial institution to help you with your finances. This loan is strictly for personal use only. You can use this money for anything including taking a vacation, buying a car, refurbishing your home or for consolidating all your bills at once and paying them off.

The process of applying for a personal loan varies from bank to bank but is fairly simple.  All you have to do is walk in to your bank and ask for someone to help you with figuring out what kind of a personal loan will best suit your needs. The tenure for most personal loans varies from 12-48 months but the banks do consider longer periods in case of certain situations.

personal loans

Personal Loan Enquiry

Most banks offer a variety of personal loans. You have the option of choosing between a fixed interest rate loan or a loan with a variable interest.  In fixed interest loans, the EMI or the equal monthly instalment remains the same through the course of the loan, whereas it varies in a variable interest loan.

Here are the steps to follow to apply for a personal loan.

  1. Do your research on lenders:

You can start enquiring with the bank you currently have any kind of accounts with, but it is a good idea to look at your bank’s competitors as well while applying for a personal loan. Check for any special offers that are available during festival times as well. Once you arrive at a decision about whom to take a personal loan from, move to the next step.

  1. Documentation :

Once you finalize who your lender is, contact them and ask for an agent to help you with the documentation process. Most banks have specialized agents who will visit you and collect all the documents required.  You may need to submit copies of your pay slip, IT Returns, bank statements, passport, driver’s license and other documents. The requirements differ from bank to bank.

  1. Agent Verification/Visit:

After the documentation is done with, the bank’s agent will visit you to cross-check and verify the                details provided by you.  It is very important that you be at home during this visit, to make the process easier. If you are not present or the facts not verified, there is a possibility of the loan being rejected.

  1. Loan approval:

Once the agent-visit to your home or office is done with, the lenders will double check the documents provided plus intake inputs from the agent. Once the bank is suitably satisfied with the information provided, the loan is approved.

So, please keep in mind all these steps before you apply for a personal loan.

A brief Introduction about Personal Loans

Personal loans are unsecured without any collateral or guarantee availed for personal purposes such as meeting marriage expenses, buying user durables, funding educational expenses, home improvisation or spending on a holiday. These loans are convenient to meet one’s needs. Personal loan amount can vary between Rs.50000 to Rs.200000 with a tenure ranging from 1 to 5 years. Interest rates levied on these loans can differ among banks based on various factors like income, profession and credit worthiness. The interest rates can differ between 14 to 25 %. There are two sorts of interest rates offered by the bank, which are flat interest rate and reducing balance interest rate. Other bank charges levied on loan amount are documentation fee, processing fee and pre-payment penalizations.

personal loan

Apply for Personal loan

Personal loan eligibility factors are based on criteria like income, age, tenure, residence proof, loan amount, bank statements and current work experience. The loan also demands minimum 1 or 2 guarantors to submit the similar set of documents as of the applicant. Equated Monthly Installments (EMIs) represents the basic sum and the interest on the basic sum, which are equated across every month in the loan term. Turnaround time taken for processing of the loan by the bank varies from one week to a fortnight but again it does change from bank to bank.

The merits of personal loan can be summarized as easy documentation, quick processing, huge loan amount, non-collateral and no condition for specifying the end use of the loan amount.

A personal loan can be used to meet different financial needs like a holiday trip, buying an electronic appliance, for marriage, education etc. Different Indian banks have different terms and conditions which one must satisfy in order to avail a personal loan. Like any other loan the repayment of the personal loan is also done through EMI, Equated Monthly Instalment which contains both part of the principal amount and interest. A personal loan like any other loan can be applied either online or by visiting the particular bank.

Personal Loan Eligibility

  1. A person should satisfy a certain age criteria in order to apply for a personal loan.
  2. The person should have a regular source of income be it a salary or from a business and also should satisfy a certain amount criteria.
  3. The applicant should also satisfy a certain time period in the most recent employment.
  4. The applicant also should satisfy a certain time period in the most recent residence.

Documents Required

A completely filled application form with recent passport size photographs.

  1. Photo ID proof which can be passport, driving license etc.
  2. Age proof which is birth certificate.
  3. Residence proof which can be any of the utility bills like electricity bill, telephone bill etc.
  4. Proof of source of income.
  5. Bank statements of the last six months.
  6. Proof of income tax returns.
  7. A cheque for processing fee charged by the particular bank to process the  personal loan.