Personal Loan for Wedding Expenses

• Lenders issue funds as a personal loan that can be used for marriage expenses.
• Banks consider funds required for wedding expenses a valid reason to apply for a personal loan.
• A wedding loan is processed as a personal loan.

There are no restrictions on how you can use funds issued as a wedding loan.

• Towards expenses for the celebrations, costs of events, catering, decorations, etc.
• Buying jewelry, trousseau, and household gadgets for a new home.
• Honeymoon travel and post-wedding budgetary shortages.

The eligibility requirements for a top-up on a personal loan for marriage purposes are as follows:

• HDFC Bank issues a Top-Up on the marriage loan after 6 EMIs are paid.
• You must pay the existing loan EMI on time.
• You must not have taken any new loan in the past three months.
• Your CIBIL score must meet the required benchmark.

Planning always helps!

• Though there is no ideal time frame, you may need funds at the last minute.
• Apply 4 to 6 weeks in advance to avoid delays or discrepancies and stay stress-free.
• Remember, the EMI will be paid from the next month; keep enough funds in the account.

Make sure you meet the eligibility criteria required.

• Check that your CIBIL score meets the required benchmark.
• Do not make excess CIBIL inquiries that will downgrade your score.
• Compile the required documentation for a personal loan.
• Check the market for the most suitable personal loan lender.

Most Banks allow the parents of the Bride and Groom to apply for a wedding loan, as in India parents often bear expenses along with the Bride and Groom. Some Banks also allow the siblings to apply. Whoever applies must be eligible.

• The parent must be under 58 years old.
• The primary applicant must be earning a regular income credited to the Bank.
• A parent/ sibling who is earning a regular income can be added to the loan as a financial co-applicant.
• The employer must be approved under the Bank's Approved Company category list.
• The applicant's CIBIL score must be above 750 points.
• If anyone in the family has a CIBIL default, it will affect the family's credit chances.

Before getting married and obtaining a marriage certificate, there is no proof of the relationship between the bride and groom; therefore, they must apply for the wedding loan independently.

• The bank will consider the personal loan applications separately.
• Both must meet the Eligibility criteria for a personal loan for marriage expenses.
• The personal loan amount is based on your current income and FOIR calculations.

The minimum CIBIL score required to apply is 730+, but it depends on the lender's norms.

• HDFC Bank and ICICI Bank offer wedding loans to applicants with a 0 or -1 CIBIL score.
• ICICI Bank requires a minimum CIBIL score of 750+ to process a marriage loan for applicants with a Credit history.
• The applicant's credit history is also considered in cases of a marginal score.
• Applying to a lender with a previous relationship will add value to the application.

The amount issued as a loan for marriage expenses is as per the eligibility of the applicant and the lender's policy; key points include:

• Income: The applicant's net salary transferred to the Bank.
• Company Category: HDFC Bank offers marriage loans depending on the company category.
• Existing Credit: The existing loans and credit card obligations are accounted for.
• Terms: The applicable interest rate and EMI.

Applicants can check the EMI applicable for the required loan amount using a wedding loan EMI calculator.

• Change of KYC: If you have taken a personal loan in your maiden name and change your name and address after marriage, your wedding loan will not be affected if you continue to maintain your Bank account from which your EMI is deducted.
• Update Bank Account: If you change your Bank account with a new KYC, name, and address, you will have to update the same with the lender and sign a new e-NACH form.
• Inform Lender: In case you are closing your existing Bank account, inform your wedding loan lender about the new Bank account well in advance of the EMI date.
• Avoid an EMI return: An EMI presented to your old account and returned unpaid will always reflect on your loan track and affect your credit score.

Getting the funds required for marriage expenses at the lowest cost can be challenging. Check out the following steps to get the loan amount you need at the lowest interest.

• Check Market offerings: Compare lenders' interest rates and policies to find a suitable lender.
• Existing relationship benefits: Apply to the Bank with a salary account or a credit account to expedite your loan process.
• Confirm CIBIL Score: Check that your CIBIL score meets the required benchmark before applying for a marriage loan.
• Clear credit card debt: Clear your outstanding credit card balance to qualify for the required loan amount.
• Check total cost: Confirm all charges, including processing fees and pre-closure charges, not just the interest rate.
• Complete Documentation: Make sure you have the required documents ready before applying to avoid delays.

Our advisors at www.yourloanadvisors.com have the experience to assist and guide you in securing the right wedding loan, so there are no stops to your perfect wedding celebrations!