Should you borrow a Personal Loan for Wedding?
Wedding is one of the most important days of your life. Every one of us want to make it as special as it could be. To make it more memorable, it requires a handsome budget which is not affordable for everyone. And here the personal loan for marriage does exist to fulfill the wedding aspirations.
In today’s era, every problem has a solution. And for your hassle-free wedding plan also, multiple banks are providing a various scheme which will help you to arrange your marriage event in a luxurious way.
Let’s dig to get in-depth knowledge about Personal Loan for Wedding.
What is a Marriage Loan or a Wedding Loan?
There are many direct and hidden expenses included in a wedding, such as: to arrange the marriage location or a banquet hall, to buy the best and a beautiful outfit, to hire the caterers and decorators, gift packaging for the relatives and more. To maintain these all expenses, either you should have enough savings or you need to borrow money from your local market or you can go for a personal loan for a wedding.
Who are eligible to apply for a Personal Loan for Wedding?
Based on the situation and a person’s background, the eligibility for a personal loan for a wedding may depend on many factors. But we are listing below the most common eligibility to avail for a marriage loan which will help you to check your eligibility:
- Age Limit: Generally, most of the banks approve the personal loan if you are in between 21 to 23 years at least. Whereas, the maximum age limit is up to 58 years in case of a salaried employee and 65 years for the self-employed person.
- Monthly Income: To avail the scheme, your monthly income should be at least Rs. 15,000. Remember, it may vary bank to bank and also based on your location, age, occupation, and more.
- Earning Status: As an employee, if you are working with the same organization for 2 years at least, it will be easier for the lender to approve your wedding loan application. In case of a self-employed, you can show you regular earning statements to the bank for easy approval of the loan.
- Good Credit Score: Ignore if you have already gained a credit score above 700 points. Else, you should look after that and try to maintain the good credit score which should be at least 600 points, by clearing your previous loan dues on time.
- Loan Amount: The HDFC Bank Personal Loan allows you to borrow the wedding loan amount anywhere in between Rs. 5 Lacs to Rs. 25 Lacs. But the actual approved amount for the loan will depend on your eligibility of earnings, repayment, assets, credit score and more.
Benefits with HDFC Personal Loan for marriage
- Instant loan approval. If everything is fine, then you may get the wedding loan approved within 5 minutes.
- The HDFC bank required the possible minimum document to approve your loan. No need to worry about too much documentation.
- After following the documentation process successfully, the money can be disbursed in your account within 24 hours.
- The HDFC flexible repay tenor allows you to repay the loan amount as per your convenience in between 2 years to 5 years or 24-60 months.
- The flexible amount helps you to borrow the money as per your expected wedding expanses. The HDFC Bank allows you to take a marriage loan up to Rs.25 Lacs.
- HDFC offers an amazing scheme for their special customers to celebrate their happiness. The special customers might be a doctor, a woman, salaried professional, a pensioner or a golden edge people.
Security to Deposit for taking a Wedding Loan
- Assets: If you have any valuable assets such as a car, personal property or a commercial property, you can apply for the personal loan for a wedding.
- Shares: If you are holding any equity share, you can take the loan against that too.
- Mutual Funds: HDFC Bank give the flexibility to take the wedding loan if you have equal value of mutual funds to the amount that you want to avail for.
- Salaried Employee: In the case of a salaried employee, you can also take loans by providing a letter taken from the authorized company, who can become a guarantor for the loan amount you are going to avail.
- Self-Employee: You can show your business assets at the time of applying for the wedding loan.
Documents Required for Personal Loan for a Marriage Ceremony
All the banks have their guidelines for the required documents. Here, we are listing the common documents which are asked by most of the bank to approve your Personal Loan for Wedding. Let’s have a quick look into it:
- ID Proof: You can provide a scanned copy of your identity proof. Few frequently used ID proofs are Aadhaar Card, PAN Card, Voter ID Card, Passport, Driving License & Ration Card
- Residential Proof: You can opt for any document which is showing your address over that. Few frequently used Address proofs are Passport, Aadhaar Card, Driving License, Ration Card, Voter ID Card, Rent Agreement, Electricity Bill, Landline Bill & Water Bill.
- Age Proof: Mostly, the above listed documents do include the date of birth but in case, your ID Proof or the Residential Proof does not contain your date of birth, you can provide the other documents to support the same. Few DOB proofs are PAN Card, Birth Certificate & the School Leaving Certificate i.e. SLC.
- Income Proof: A salaried employee can show his/her salary slips as an income proof, whereas the self-employed one can submit the IT returns file of 2 years or the transaction statement as a supporting document.
- Personal Loan Application Form: Last, but the very important document is your application form. You can ask the bank or can directly download the loan application form from the official website of the HDFC Bank. The duly-filled application form must be submitted carefully along with all the required document shared above.
Top 15 Bank Interest rate comparison of Personal Loan for Wedding
| BANK | Interest Rate (%) | Processing Fee |
| HDFC Bank | 11.25% | 0.99% to 2.50% |
| Kotak Bank | 11.49% | Up to 2.5% |
| Bank of Baroda | 11.60% | 2% |
| Bajaj FinServ | 11.99% | 1.50% to 3% |
| PNB | 12.00% | 1.8% + taxes |
| SBI Personal Loan | 12.50% | 2% to 3% |
| Union Bank of India | 12.70% | 0.50% |
| Indian Overseas Bank | 12.70% | Rs. 204 per lakh |
| Canara Bank | 13.00% | 0.50% |
| Allahabad Bank | 13.15% | 1.06% |
| IDBI Bank | 13.20% | 1% |
| Syndicate Bank | 13.40% | 0.50% |
| RBL Bank | 13.99% | Up to 2% |
| HDB Financial | 13.99% | Up to 2% |
| Bank of Maharashtra | 15.10% | 1% |
HDFC Wedding Loan Rate Chart Updated on July’ 2019
| Entity | Salaried | Self Employed |
| Interest Rate starting at | 11.25% | 13.00% |
| Processing Fee | 0.99% to 2.50% | 0.99% to 2.25% |
| Loan Tenure | 12 Months to 60 Months | 12 Months to 48 Months |
| Loan Amount | Rs. 50,000 to Rs. 50 Lakh | Rs. 50,000 to Rs. 50 Lakh |
Now, let’s summaries the topic “Should you borrow a Personal Loan for Wedding?”. If in case, you don’t have a big saving, we would recommend you going for the personal loan than other borrowing options to plan your wedding. Because after keeping eyes on each and every aspect, the lender approves your loan application. The bank doesn’t keep you in dark to charge some hidden amount and then to threaten you like other lenders.