Marriage Loans in India
In India, Marriage is the most auspicious occasion in the life of the girl, boy and their family members. The day wedding is fixed the list of expenses is seen in the hands of both the girl and boy. Earlier the family members used to pay for the wedding expenses. But as the trend has changed, the bride and the groom bear the wedding expenses.
This day comes once in lifetime of an individual and thus wants to make it the most memorable day. They don’t think of limiting the expenses and go over limit. They might not have sufficient funds to bear the expenses at one go. Instead of using the past savings or credit cards to apply for loan is much cheaper. Payment through credit card is like drawing loan but at a much higher rate of interest if not paid on time.
Wedding loan can be taken by the bride, groom, and their family member whether employed or unemployed. They must first check on the expenses to be incurred and then plan out the loan amount. The amount required should be taken to avoid repayment burden. This is a short term loan amount and there is no penalty on prepayment of installment.
Marriage loans can be broadly classified as follows:
- Secured Wedding Loans
- Unsecured Wedding Loans
Secured Wedding Loans: Secured wedding loan means loan against security. The loan applicant has to pledge his personal property like home, land or any other valuable property against the loan taken. It gives security to the lender of repayment of loan and in case of default the lender can seize the property pledged. The rate of interest for secured marriage loan is reasonable as the risk of default is less.
Unsecured Wedding Loan: Unsecured wedding loans are not secured against any valuable asset of the borrower whether tangible or intangible. Here the risk of default is high and thus the rate of interest is also high. These loans are best suitable for those whose don’t own a property eg. Tenants and also for those people who don’t want to risk their valuables. Unsecured Marriage loan is more expensive than secured wedding loan as there is more risk of default.
Bad credit wedding loans are also available but at a higher rate of interest. The interest rate depends on the loan amount taken. Proper information must be searched for and then apply for the most suitable loan as per your need. The terms and conditions offered by the different lenders must be read carefully and then apply for the one most suitable to you.
Marriage loan helps to reduce the burden of expenses and adds more happiness to the occasion. Loan taken can be paid slowly in monthly installments. So the couple can enjoy each and every moment of their big day without any tension or worries.