5 Things That You Need To Know About Wedding Loans In India
The ever-booming Indian wedding industry is predicted to touch a market size of Rs. 3, 44,700 Crore by 2020. This sector witnessed an annual growth of 25-30% owing to a boost in middle-class income and a booming Indian economy. According to the latest surveys, Indians end up using approximately 1/3rd of their savings to fund such weddings. Under such circumstances, wedding loans are popular financing options to avoid spending a considerable share of future savings.
These wedding advances are of two types – secured and unsecured. Since unsecured advances come with a higher rate of interest, secured loans are the more affordable option. Also, loan against property for weddings come with lucrative features like zero end-usage restrictions. Borrowers can, thus, avail the funds to finance their big-ticket wedding expenses, including destination wedding cost, bridal makeup package, catering, décor, etc.
Subsequently, since availing loans is a crucial financial decision, one needs to take into consideration the following factors before availing a loan for a wedding –
- Rate of Interest: Financial institutions determine the rate of interest of loans based on the prevalent lending rate. As secured loans are sanctioned against collateral, lenders have the reassurance of repayment in case of a default by liquidating the mortgaged asset. Hence, such wedding loans come at a lower rate of interest, which leads to pocket-friendly EMIs as convenient repayment options.
- Loan Repayment Tenure: Such mortgage loans come with flexible tenure for the borrower to choose from. The loan repayment tenure plays a crucial part in determining the EMI to be paid. Hence, borrowers should make a thorough survey and settle for a lender who provides them with a range of convenient tenure options. They can either opt for a short tenure and high EMI, or an extended tenure with lower EMIs as per their current financial ability.
- Credit Amount Offered: Considering the recent trend of destination weddings and hefty bridal makeup packages, potential borrowers are often on the lookout for lenders offering a higher loan amount. This sum can easily be availed from reputed lenders like Bajaj Finserv against an asset in good condition and within the serviceable range of the financial institution. Lenders look into a property to be mortgaged and analyze its current market value following which they offer a Loan To Value or LTV of up to 75%.
A wedding loan against property from a reputed lender like Bajaj Finserv can help eligible applicants to borrow loan amounts as high as Rs. 3.5 Crore. Their advances come with multiple borrower-friendly lucrative features that include –
- Easy balance transfer facility.
- A flexible tenure ranging from 2 to 20 years.
- Quick approval of credit amount.
- Swift disbursal of sanctioned sum within 4 days of loan approval.
Additionally, such reputed lenders also provide you with lucrative features like the Flexi Loan facility. This unique feature enables borrowers to utilize funds from a pre-sanctioned loan amount and pay interest only on the withdrawn sum and not on the principal amount. One pays interest-only EMIs all through the repayment tenure, which reduces the EMI burden by 45%. They can also withdraw as and when required and repay as per their convenience. In case one pays backs the withdrawn amount on the same day, no additional interest is incurred.
- Eligibility Criteria Required
Potential borrowers looking to avail wedding loans need to meet the following eligibility criteria –
- An individual should be between 33 to 58 years of age.
- He/she must be an India citizen residing in any of the lender-specified cities of the country.
- The potential borrower must be a salaried employee working in a private or public sector, or in an MNC.
- He/she must be an Indian citizen residing in any of the cities listed by the lender.
- A borrower should belong to the age bracket of 25 to 70 years.
- He/she should have a regular source of income.
- Necessary Documents
While looking out for everything you need to know about taking a loan for wedding, make sure that these following documents are compulsory inclusions in your list –
- KYC documents
- Address proof
- Latest salary slip
- Copy of documents for the property to be mortgaged
- IT returns
- Bank account statement of the last 3 months
- Copy of documents for the mortgaged property.
- Address proof.
- Bank account statement of the previous 6 months.
- KYC documents.
Considering the no-end usage restriction of these advances, loans against property for the wedding can easily cover your destination wedding cost or the honeymoon expenses just as easily. One can also use a considerable share of this amount to purchase a house. In that case, there are also the added benefits of tax exemptions. All that potential borrowers need to do is look out for lenders who provide them with the maximum benefits along with attractive rates of interest.