Celebrating a child’s wedding is one of the most important occasions in any parent’s life – and in India, this most joyous of occasions involve expenses on an equally grand scale. Few people have ready cash to fund expenditure of such a magnitude – which is why many parents and couples look for a suitable ‘marriage loan’ that can help them tide over this huge cash outflow.
While there is no specific product known as a marriage loan, you can take a personal loan to cover the costs of organizing a wedding. A personal loan can be used for any purpose – whether a wedding celebration or an expensive vacation or even medical emergencies. You do not need to specify the end-use of the loan amount. Almost all banks and NBFCs offer personal loans and HDFC is one of the leading lenders in the country.
How to apply to HDFC for a ‘marriage loan’
It is easy to apply for a personal loan from HDFC to help you cover wedding 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 on the bank’s website before applying for the loan. Once you complete the eligibility check, you can apply for the loan online or visit a branch for details. At some select branches (listed on the website) you can get approval within a day.
There is not much documentation required as there is no specific loan purpose (like a home or automobile) and could include ID proof, address proof, bank statements and salary slips. The documentation will vary with your profession, income and loan requirement.
Once you apply online, you will receive an application reference number. You can use that number to track the status of your loan application online.
Interest rate and tenure on a personal loan
The interest rate on a personal loan ranges from 15%-20%. The interest rate charged depends on a number of factors including income, profession, credit score, and relationship with the bank among others. The loan period typically ranges from 1-5 years.
Advantages of a personal loan
There are two attractive features of a personal loan:
1. 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 have complete freedom to use the money for any purpose you want; even it is not related to marriage expenses.
2. 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 raise collateral quickly.