A personal loan is a multipurpose loan since it can be used for a variety of financial purposes, including travel expenses, higher education, wedding expenses, and so on. It’s a no-collateral loan, which means you can get a personal loan without putting up any collateral or including a guarantor. You can put the money into some of your financial needs. Nowadays, a personal loan for a wedding is becoming increasingly popular, resulting in a plethora of personal loan lenders in the financial market. So, if you need additional funds for the wedding, don’t worry; you can easily obtain a personal loan for a wedding. You may get a marriage loan with or without papers, regardless of your job status (salaried, cash salaried, or self-employed).
Personal Loan Interest Rates for Weddings
As previously mentioned, personal loans are available from a number of banks, NBFCs, and peer-to-peer lenders. From 10.90 percent p.a. onwards, you can get a personal loan with a low-interest rate. However, the interest rate offered can vary from one applicant to the next. The following is a list of some of the best personal loan providers, along with their average interest rates.
| Bank Name | Interest Rates (p.a.) |
| HDFC Bank | 11.25%-21.50% |
| ICICI Bank | 10.99%-18.49% |
| Bajaj Finserv | 10.99%-16% |
| Axis Bank | 16%-24% |
| SBI | 10.90%-15.30% |
| Kotak Mahindra Bank | 10.99%-20.99% |
Generic Eligibility Criteria for a Wedding Personal Loan
- An applicant should be either salaried or self-employed.
- Salaried job applicants must be at least 21 years old and no more than 60 years old.
- Self-employed candidates must be at least 25 years old and no more than 65 years old.
- An applicant must have worked for the current company for at least one year.
- He or she should have a net monthly salary/income of at least Rs. 20,000.
- If an applicant is an entrepreneur, his or her company must have been profitable for at least the previous 60 months.
A popular list of documents needed to apply for a wedding personal loan.
Salaried Employee
- Residential Proof – Licensing Agreement/Utility Bills (maximum three months old)/Passport • Income Proof – Last three months’ payslips, as well as a bank statement showing the salary transaction
Self-employed individuals
- Simple KYC records, such as proof of identity, proof of address, and proof of age.
- Proof of residence: License Agreement/Utility Bills (within the last three months)/Passport (if you own one)
- ITR from the previous year
- A copy of your official address
- Testimonials from the previous year to demonstrate the company’s stability.
The Benefits of Taking Out a Personal Loan for a Wedding
Here are some of the most important reasons to get a personal loan for a wedding:
- It is cost-effective- Personal loans have become more competitive in recent years, with interest rates beginning at 10.90 percent per annum.
- Loan Processing through the Internet- In the comfort of your own home, you can apply for the loan, upload the necessary documents, and e-sign the loan agreement.
- Loan Term Versatility- If you only need a small amount of money for your wedding, you can choose from a limited number of personal loans.
Consider these considerations when choosing a personal loan for a wedding.
- The Rate of Interest- When applying for a personal loan, one of the most significant factors to remember is the interest rate. This dictates how much the loan will cost you over the course of the loan.
- There are additional charges- It is important to ensure that a personal loan has no secret fees.
Interest Rates on Personal Loans
The interest rate, which determines the EMI, is one of the most important aspects of a personal loan. There are two types of interest rates: fixed and variable.
- The cost of borrowing is fixed.
- Fee on a floating loan.
- Fixed Interest Rate: If you want a personal loan with a fixed lending cost, you can pay the same premium over the loan period.
- Floating Interest Rate: On the other hand, a floating or variable loan fee is related to the Marginal Cost of Lending Rate, or MCLR, resulting in a flexible interest rate that varies with the MCLR.
Interest Rates on Personal Loans: Factors to Consider
- Credit score: A credit score is a three-digit number that indicates how well you have treated previous credit card and personal loan repayments. You may be given a lower interest rate.
- Income: Since personal loans are non-collateralized and do not need any security, a high monthly income serves as a guarantee to the lenders.
Tips for obtaining a Low-Interest Personal Loan
- Improve Your Credit Score: As previously mentioned, maintaining a good credit score of 750 or higher is important because it represents your creditworthiness. If your credit score is less than 750, you’ll need to put in some extra effort to lift it.
- Pay Off Current Debts: The DTI (Debt to Income Ratio) is determined by dividing a person’s monthly debts by his or her monthly income. Lenders use DTI to assess an applicant’s ability to handle monthly EMIs as well as other expenses.
- Compare your options: Don’t consider the first personal loan offer you get or see.
- Apply with a co-applicant: If your credit score is below 750, lenders can accept your loan, but only at a high-interest rate.
- Consider pre-approved loans: After reviewing your repayment history, lenders can give you a pre-approved loan.
Final Thoughts:
And if you are a cash salaried employee, you can get a personal loan for a wedding. There is various app, like Indiabulls Dhani App, that allows you to get a personal loan without having to show proof of income. Only the most basic KYC documents are needed.
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