Technically, there is no such thing as a ‘wedding or marriage loan’. You cannot approach a bank for wedding loans. It is actually a personal loan that can be used to fund the event. You are aware how expensive weddings are, considering the insane number of ceremonies we have.
It can be a quick fix when you run short of cash to pay for catering or for the venue itself. Think well before you decide to opt for this because this can impact your financial decisions post wedding. Discuss with your partner before taking this step.
A tonne of online lenders have managed to make their presence known over the last five years. Some provide crowd-sourced cash, while some collaborate with listed banks and bear most of the risk for these unsecured loans. Of course, they too have an approval process, though not as strict as the banks. The income criteria varies from lender to lender. Some offer business loans, while others cater only to self-employed and salaried. As with any unsecured loan, it is a short-term loan; the maximum tenure you can opt for is three years.
One good thing about nuptial loans that stretch out a mile is that it is quick. In fact, you can apply online, upload the documents, get them verified in a few hours and (if all the papers and conditions are in place) get the money credited to your account by the very next day. This trend, if caught on, can out do credit cards as they interest they charge is way higher than that of loans by alternative lenders.
Wedding finance can range from anywhere between ₹50,000 to 700,000. If you miss even one EMI or paid late, it could affect your CIBIL score badly. On the flip side, if you repay and close the loan exactly as agreed, it can boost your score. If you love the idea of sharing the finances with your parents, but have not been able to save up much, taking out a marriage loan can certainly solve all your problems.