Financing a wedding with a marriage loan is a strategic financial decision to ensure adequacy of funds for the grand event. Although wedding budget varies with people, it often exceeds due to unplanned yet crucial expenses. A loan against property for wedding comes with large amounts of up to Rs. 3.5 Crore. The funds can be utilised to manage diverse expenditures efficiently.
Various financial institutions, including NBFCs, offer secured wedding loan with a host of features. Borrowers must consider a few essential points before availing one to get the best deal.
Important Points To Consider When Taking A Marriage Loan
1. Eligibility Parameters
Every financial organisation has its own set of eligibility criteria for borrowers. Fulfilling all the eligibility requirements is essential to get the loan faster without any difficulty. Before taking a wedding loan against property, ensure you qualify for the same and avoid any chances of rejection.
Leading NBFCs nowadays make marriage loans more accessible with easy-to-meet eligibility criteria. Some of those include:
- Be either a salaried employee of any private/public concern or an MNC or a self-employed individual.
- If you are salaried, your age must be within 33 – 58 years. For self-employed applicants, the age bracket is 25 to 70 years.
- You must be residing citizens of India.
- You should hold a healthy CIBIL score of 750 to qualify for better features and benefits.
A loan application’s rejection can leave a negative mark on your credit report. So, do consider the criteria to qualify for a loan before applying.
Certain documents are essential to process a loan application, and this documentation requirement varies with lenders. So, check the paperwork involved and keep all the updated documents handy to avoid delay in the loan processing.
Some of the essential documents you need to submit are KYC documents, property papers, bank statements, salary slips, etc. Make a check list of documents required to avail a loan against property to avoid any mistakes.
3. Application Process
Most lenders now accept online loan applications for the convenience of borrowers. Ensure that your chosen lender offers online application along with quick approval.
NBFCs such as Bajaj Finserv allow borrowers to complete the process in 3 – 4 easy steps online. They also provide exclusive pre-approved offers which reduce the time taken to avail a loan, making the process less complicated. Pre-approved offers can be availed on secured credits like home loans, unsecured credits like personal loans, business loans and a host of other financial products.
You can expect a faster loan disbursal within 4 days of approval.
4. Fees and Charges
When taking a secured marriage loan, consider the interest rate charged by your preferred lender. Go for the most competitive rate so that the loan doesn’t become a financial burden in the future.
Apart from rate of interest, a loan comes with other additional charges like processing fees, statement charges, penal charges, prepayment charges, etc. Choose a lender who offers transparent policies with no hidden charges and nominal associated fees.
Lenders assess the creditworthiness of an individual based on his/her credit profile. Your CIBIL score plays a significant role in determining how risky you are as a borrower. Also, ensure that your credit report doesn’t contain any record of default.
The best practice is to check your credit report occasionally and get all errors corrected, if any.
6. Repayment capability & Tenure
Besides the wedding budget, assess your repayment capability based on your financial plans and obligations. This helps in choosing an appropriate tenure for wedding loan that won’t create a monetary burden in the future. Go for a lender who offers a flexible tenure up to 20 years.
LTV or Loan to Value ratio signifies the amount of loan you can borrow compared to the market value of the property mortgaged. Usually, lenders offer up to 70% of the property’s value as a wedding loan.
You can also choose loan against property as a financial aid for destination wedding loan. But make sure you check the LTV offered by your chosen lender to get the required funds for the wedding. Lastly, evaluate the EMIs beforehand using an online calculator for better planning. Consider these factors, know everything about a loan against property for wedding and then apply with a reputed lending organisation in India.