Explore Financial Options for a Dream Destination Wedding

Arranging a destination wedding is now a prevalent trend for couples looking to break away from the usual routine. The charm of an intimate ceremony in a gorgeous setting is irresistible, and many domestic and international resorts offer luxury packages. However, couples require proper financial planning because of the high initial costs of destination weddings. In case a couple does not have the finances for a destination ceremony, reputable Non-Banking Financial Companies (NBFCs) offer Personal Loans for Weddings (also known as Wedding Loans).

Couples use personal loans to receive a large sum of money that can be returned over time. Let's look at how to finance a destination wedding, its benefits, weaknesses, and considerations of a  loan for marriage.

What Can a Wedding Loan Be Used for?

A wedding loan is a type of personal loan to cover the expenses associated with a marriage ceremony. W These loans can be acquired from banks, credit unions, or online lenders, offering couples a flexible means of financing their special day.

Personal loans can be used to finance:

1. Wedding Clothes

2. A Live Band

3. Wedding Reception/Venue

4. Engagement Rings and Wedding Rings

5. A Photographer

6. A Florist

7. Catering

8. A Wedding Planner

Eligibility Criteria for a Wedding Loan in India

Individuals must fulfil the fundamental requirements to be considered eligible for a wedding loan.

1. Age
   Applicants must be at least 21 years old and not exceed the age of 60 to be eligible for a wedding loan.
2. Type of Employment
   Potential borrowers should either be salaried individuals working under private limited companies or public sector undertakings. Alternatively, self-employed individuals with a minimum income requirement can also apply.
3. Work Experience
   Salaried individuals require a minimum of 2 years of work experience to qualify for a wedding loan. In the case of self-employed individuals, the work experience requirement ranges from 2 to 4 years.
4. Income
   All applicants must have a monthly income of around at least INR 25,000 to be eligible for a wedding loan.
5. CIBIL Score
   Since wedding loans fall under the personal loans category, a CIBIL score of 680 or more is preferable for approval.

Documents Required for Wedding Loan Application

When applying for a wedding loan, the following documents are essential to facilitate the application process.

Loan Application Form

Lenders employ various KYC processes, including digital and video methods, to verify the applicant's identity, with the aim of simplifying the verification process for applicants.

Applicants must complete the loan application form accurately, upload recent photographs, and submit the form with the required documents on the platform. You might also have to take a selfie or upload a picture of your Aadhar card.

Steps to Apply for a Wedding Loan

Following these steps will help you to apply for a loan for marriage:

Calculate Wedding Expense
Determine the total wedding budget, considering all expenses such as venue, catering, attire, and more.

Assess Savings and Contributions
Evaluate existing savings and any contributions from family or other sources, subtracting these from the total budget to identify the loan amount needed.

Check Credit Report
Review your credit report for accuracy on platforms like AnnualCreditReport.com, KreditBee etc., addressing any errors promptly.

Get Rate Quotes
Request rate quotes from different lenders to understand interest rates, loan terms, and borrowing capacity without affecting your credit score. You can also check different websites online to check for competitive interest rates.

Choose a Lender
Select a lender based on favourable terms like interest rates, repayment flexibility, and customer reviews.

Complete Application
Fill out the loan application the chosen lender provides, including personal and financial information.

Provide Documentation
Submit ID proof, address proof, income proof, and the completed loan application form.

Wait for Approval
Await the lender's review and approval process. Approval times vary, so be patient during this stage. Some online lenders can approve your loan within minutes, whereas some can take more than a day to approve your application.

Review Loan Terms
Once approved, carefully review the loan terms, including interest rates, repayment schedule, and associated fees.

Accept the Loan Offer
If satisfied with the terms, formally accept the loan offer provided by the lender.

Receive Funds
Upon acceptance, the lender will disburse the loan amount. Be aware of the expected timeline for fund transfer.

Repay the Loan
Begin making timely repayments according to the agreed-upon schedule to fulfil your financial commitment.

Pros and Cons of Loans for Marriage

Taking out a loan for marriage to cover wedding expenses has its advantages and disadvantages.

Conclusion

With proper planning and financial management, your dream destination wedding can be turned into a reality without depleting your savings. You can pay for all wedding-related costs and organise the wedding at the place of your dreams with a loan for marriage. It's critical to perform in-depth research on different lenders and compare interest rates, loan conditions, and other requirements to choose the best option.