A marriage loan is an unsecured loan personal loan that is availed to cover the expenses of a wedding. This is offered by almost every bank in the country. A marriage loan is a very good loan option that can aid people in managing huge wedding expenses whether it is for their own wedding or of someone in the family. Borrowers usually do not have to provide security or collateral to avail the marriage loan from a bank.
Marriage Loan Eligibility:
Each bank has its own eligibility criteria to grant a marriage loan but one thing that is common amongst all banks is that they sanction this loan after considering the repayment capability of the borrower. Before offering the loan, banks usually check the credit score and credit history and monthly income of the applicant to determine his actual repayment capability. Banks put the applicant through this verification measure to secure themselves from the high risk associated with unsecured loans. For example, if the borrower is unable to repay the loan, the bank has to write-off the loan and thus, suffers a loss.
Individuals having a good credit score with minimal or absolutely no flaws tend to have a good CIBIL history and a score ranging from 750 to 900. The applicants with good credit score are considered as good candidates for any type of loan including a marriage loan. These applicants also have a high possibility of getting their loan applications approved at a very low interest rate. On the other hand, candidates having a poor CIBIL score are not considered for the loan.
Marriage Loan Amount and Tenure
A marriage loan or personal loan is easily granted for an amount ranging from Rs 50,000 to Rs 30 lakhs. The tenure for a marriage loan usually ranges from 1 year to 5 years.