Personal Loan for Wedding

Wedding loans are a subcategory of personal loans. These loans generally follow the features of personal loans that include fees and interest rates with similar loan application processes. Marriage loans are proven to be beneficial for wedding expenses. An applicant can apply for a wedding loan with the generally offered interest rate of 10.99% of the loan amount. Marriage loans are available for an individual for a loan amount up to Rs. 40 Lakhs. They are generally beneficial for customers as these loans offer various features to the applicant, including customised loan amount, no collateral requirement, flexible repayment options and more. As a part of personal loans, marriage loan eligibility criteria are almost similar to any personal loan. Documents necessary for the application process for a marriage loan do not differ from the required documents for personal loans.

Key Features of Wedding Loan

Wedding loans, also known as wedding loans or marriage finance, are tailored financial products designed to address the unique needs and expenses associated with weddings in the Indian context. Here are some key features of marriage loans:

  1. Customised Loan Amounts: Marriage loans in India typically offer borrowers the flexibility to choose loan amounts that suit their specific wedding budget. This ensures that couples and their families can access the necessary funds to celebrate their special day without compromising on their dreams.
  2. Competitive Interest Rates: Financial institutions in India often provide competitive interest rates on marriage loans. These rates can vary based on the borrower's credit history, loan amount, and repayment tenure. Borrowers should shop around for the best interest rates to minimise the cost of borrowing.
  3. Unsecured Loans: Most marriage loans in India are unsecured, meaning they do not require collateral. This makes them accessible to many borrowers without the need to pledge assets as security.
  4. Quick and Hassle-Free Processing: Financial institutions understand the time-sensitive nature of weddings in India. Hence, marriage loans typically have a streamlined application and approval process. Some lenders even offer instant loan approvals, allowing couples to make swift arrangements for their wedding.
  5. Flexible Repayment Tenure: Depending on their financial capabilities, borrowers can choose from various repayment tenures, ranging from a few months to several years. This flexibility helps manage the loan repayment in a way that aligns with the borrower's income.
  6. Minimal Documentation: Many lenders aim to simplify the documentation process for marriage loans, requiring minimal paperwork. This helps borrowers complete the application quickly and without unnecessary hassle.
  7. Co-Applicants Allowed: In India, it's common for parents or other family members to co-sign the marriage loan as co-applicants. This can improve the chances of loan approval and may also lead to more favourable terms.
  8. Prepayment Options: Some marriage loans offer the flexibility to make prepayments without penalties. This can help borrowers reduce the overall interest cost by repaying the loan ahead of schedule.
  9. Tax Benefits: While marriage loans do not offer tax benefits, some borrowers may utilise other financial instruments like personal loans or credit cards for wedding expenses. They can consider the applicable tax deductions based on the interest paid, per the Income Tax Act.
  10. Wide Lender Network: Various financial institutions, including banks, non-banking financial companies (NBFCs), and online lending platforms, offer marriage loans in India. Borrowers can explore options to find the best-suited loan product.

Comparison of Wedding Personal Loan from Top Banks

Below are the general marriage loan offers from the top banks and NBFCs:

Bank Name Loan Amount Tenure Processing Fee Minimum Monthly Salary
HDFC Bank Up to Rs 40 lakh Up to 6 years Up to Rs 4,999 Rs 25,000
ICICI Bank Rs 50,000-Rs 25 lakh 1-6 years Up to 2.50% of the loan amount Rs 30,000
Bajaj Finserv Up to Rs 25 lakh Up to 5 years Up to 4% of the loan amount Rs 22,000
Fullerton India Up to Rs 30 lakh Up to 5 years Up to 6% of the loan amount Rs 20,000
IndusInd Bank Rs 30,000-25 lakhs 1 to 5 years Up to 3% of the sanctioned loan amount Rs 25,000
Kotak Mahindra Bank From Rs. 50,000 – Rs. 25,00,000 1-5 years Up to 3% of the loan amount Rs 30,000 (Varies)
Standard Chartered Bank From Rs. 50,000 – Rs. 25,00,000 1-5 years Up to 3% of the loan amount Rs 30,000 (Varies)
State Bank of India Up to Rs 20 lakh Up to 6 years Up to 1.50% (Maximum Rs 15,000) Rs 15,000

How Does a Marriage Loan Work?

Like any personal loan, a marriage loan follows almost the same systematic structure of loan disbursement and use. Most banks and NBFCs provide marriage loans or personal loans that can be used anywhere you want, including wedding expenses. If you wish to apply for a marriage loan, you can visit the bank that provides a marriage loan or directly contact them. After providing the required documents with accurate information, you only need to wait for approval. After borrowing the marriage loan or any personal loan you’ll apply for, you can use that money for any marriage you want.

Eligibility Criteria and Required Documents for a Wedding Personal Loan

Below is the eligibility criteria for a marriage loan:

Personal Marriage Loans can be profited by anybody who meets the fundamental eligibility criteria set by the moneylender or the bank. If you satisfy all the eligibility measures, you will need to present a bunch of financial records to finish the Marriage loan application process. The general eligibility standards are:-

  • Residents:  An Indian citizen can apply for a Marriage loan. Applicants can belong to any state within the country that makes the applicant eligible for the loan.
  • Employment Status: As the loan is explicitly intended for salaried people, you should have a record of a half year of work at a well-known organisation to qualify for the Marriage loan.
  • Age: The age of the individual applying for a Marriage loan should be between 21 to 45 years.
  • Income: One needs a minimum income of ₹15000 per month to apply for a personal loan for marriage expenses. For some lenders, the required minimum monthly income can be ₹25000.
  • Credit Score: Generally, a credit score of 700 or above is a healthy credit score to apply for a personal loan for marriage expenses.

Applicants need to submit some documents with accurate information to apply for a marriage loan. Providing all the necessary documents with accurate information is crucial. The following documents are expected from the applicant to apply for a Marriage Loan in India:

  • Identity Proof: Documents that contain proof of your identity, including Aadhar Card, Voter ID, PAN Card, Passport, etc., are required for personal loan application.
  • Employment Proof: These documents include your Employment ID, the employee’s company email address, or any other document that can prove your employment status.
  • Evidence of Income: This includes documents like the ITR of last year, Bank Statement, P/L statement, etc., to prove your income.
  • Proof of Age: These documents contain information proving your age. These documents include birth certificates, Aadhar cards, Voter IDs, etc.

Interest Rate of Wedding Personal Loan

The interest rate on any loan is an additional charge that the banks and NBFCs levy. Whenever an individual makes the repayment of the marriage loan, an additional amount will be charged with the monthly EMIs based on the interest rate of that particular bank and NBFC. Below are some of the banks mentioned with the interest rates for the personal loan that you can use for wedding expenses:

Banks/NBFCs Interest Rates(p.a.)
Axis Bank 10.49% onwards
IndusInd Bank 10.49% onwards
IDFC First Bank 10.49% onwards
HDFC Bank 10.50% onwards
ICICI Bank 10.50% onwards
Kotak Mahindra Bank 10.99% onwards
Tata Capital 10.99% onwards
Bajaj Finserv 11.00% onwards
Federal Bank 11.49% onwards
DMI Finance 12.00% - 40.00%
L&T Finance 12.00% onwards
Kredit Bee 12.25% - 30.00%
MoneyTap 12.96% onwards
Piramal Finance 12.99% onwards
Aditya Birla 13.00% onwards
MoneyView 15.96% onwards
Cashe 27.00% onwards

How Much Can I Borrow with a Wedding Personal Loan?

The borrowing amount depends on the factors determining the total credit you can get as your marriage loan. Every bank and NBFC have different criteria to determine the amount of marriage loan one can get. Borrowing amount depends on factors like credit score, annual income, employment history, etc. Default in any of these can lead to the downfall of the borrowing limit. It depends on the bank and the applicant’s financial situation and how much credit any individual can take as a marriage loan. Generally, an individual can get up to Rs. 40 Lakhs from the bank or NBFC with a marriage loan.

Frequently Asked Questions (FAQs)

Can I take a loan for my marriage?

Yes, you can take a loan for your marriage to get a helping hand to cover your wedding expenses.

Which loan is better for marriage?

Ideally, the loan with the lowest interest rate and desired loan amount can perfectly fit the candidate. However, one should always choose a wedding loan that perfectly meets the financial desires of the applicant with proper comparison from different lenders.

What is a marriage loan?

A marriage loan can be said to be a subcategory of a personal loan which can be used to cover the wedding expenses of the applicant.

What are the advantages of a marriage loan?

Marriage loans have a few advantages listed below: 

  • No collateral required
  • Minimum approval time
  • Covers wedding expenses
  • Easy to get
  • Affordable interest rates

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