Would you love to have a big fat Indian wedding but are wondering where to get the money from? Most people look forward to being able to celebrate their wedding or their children’s marriage in lavish style but, as always, the biggest question is where to find funds to cover the enormous marriage expenses. If you are sure you want to take a loan to celebrate the wedding, then a personal loan is the best option as it gives you the freedom to spend on anything you want, does not require a security deposit and does not require excessive documentation. Almost all banks and NBFCs offer personal loans, though the only disadvantage of a personal loan is that it has a higher than average interest rate.
How to apply for personal loans
You can search the net for the best personal loan offers that will help you cover your child’s marriage expenses. The loan amount can range from a few thousands to a few lakhs depending on your ability to repay. You can check your eligibility online at several bank/lender websites before applying to check if you qualify for a personal loan. You can apply for the loan online or visit a branch for details.
There is not much documentation as the loan can be used for any purpose and could include ID proof, address proof, bank statements and salary slips. The documentation required will vary with each bank and depends on your profession, income and loan requirement.
Interest rate and tenure on a personal loan
The interest rate charged depends on a number of factors including income, profession, credit score and relationship with the bank among others. In general, the interest rate on personal loans can range from 15%-25%. The loan period typically ranges from 1-5 years. Make sure that even if you use all this loan money on marriage expenses, you will have enough income to repay the loan in full and on time.
Advantages of a personal loan
There are two attractive features of a personal loan:
• Complete flexibility of end-use. There are no restrictions on how you should spend the loan amount. You can use the entire loan amount to cover the wedding expenses ranging from clothes and jewelry to hiring the hall, caterers and any other expenses. You also have complete freedom to use the money for any purpose you want, even it is not related to marriage expenses.
• Lack of collateral. A personal loan is an ‘unsecured loan’, meaning you are not required to provide any security to the lender in the form of cash, shares or any other assets. This might make it more attractive to some customers who may not be able to readily provide any security.
Celebrating a marriage in the way you want is the dream of every parent and child. A personal loan will help you make that dream a reality!