Compare & Choose from the Best Personal Loan OffersMarriage loan, also known as a wedding loan is a collateral-free loan that can be availed to cover the wedding expenses, such as venue booking, shopping, guest accommodation, catering, and other related arrangements. Marriage Loans are offered by almost all the leading financial institutions in India. Further, let’s discuss some important aspects related to marriage loans, such as interest rates, features, eligibility criteria, documents required, fees and charges, etc.
Marriage Loan Interest Rates – 2022
Marriage loan interest rates vary from one lender to another. These personal loan interest rates also depend upon the applicant’s credit score, employment type and history, income, loan amount, repayment capability, etc.
Marriage loan interest rates of leading banks and NBFCs are given below:
| Banks/NBFCs | Interest Rates (per annum) |
| HDFC Bank | 10.25% – 21% |
| SBI | 9.60% – 13.85% |
| PNB | 7.95% – 14.50% |
| ICICI Bank | 10.50% – 19% |
| Axis Bank | 10.49% – 24% |
| Kotak Mahindra Bank | 10.25% onwards |
| IndusInd Bank | 11.00% onwards |
| IDFC First Bank | 10.49% – 23% |
| Bajaj Finserv | 13.00% onwards |
| Tata Capital | 10.99% onwards |
Note: The above-mentioned interest rates may change and shall depend on the sole discretion of the bank, NBFC and RBI.
Features of Marriage Loan
Basic features of Marriage/Wedding Loan are mentioned below:
- Collateral-free Loan: No Security or collateral required by the bank
- Interest Rate: 10.25% onwards p.a.
- Loan Amount: Maximum loan amount can be availed up to Rs. 40 lakh, may exceed as per requirement
- Repayment Tenure: From 12 months to 60 months
- Hassle-free online application process
- Quick loan approval and disbursal
Eligibility Criteria
| Particulars | Salaried | Self-Employed |
| Age | 21 – 60 Years | 21 – 68 Years |
| Minimum Income | Rs. 15,000 per month | Rs. 5 lakh per year (gross) |
| Employment Stability | Minimum Total Experience – 2 Years Experience in the current organization- At least 1 year | Minimum 2 years in current business |
| Credit Score | Credit Score of 750 or above is preferred | Credit score of 750 or above is preferred |
Note: The marriage loan eligibility criteria mentioned above is generic in nature and the eligibility criteria may vary from one lender to another. Lenders may also require applicants to fulfill additional eligibility criteria on a case by case basis.
Tips to avail Marriage Loan at Low Interest Rate
Here are a few tips that could help you avail a lower rate of interest on your marriage loan:
- Build and maintain a healthy credit profile and a high credit score of above 750
- Apply for marriage loan with a lender with whom you have an existing relationship
- Maintain low credit utilization ratio with good loan repayment history, if any
- Maintain a stable employment history with any reputed organization
Documents Required
Some common documents needed to avail marriage loans are stated below:
- Duly filled application form along with passport-sized photographs
- Identity Proof: PAN Card/ Aadhaar Card/ Voter’s ID/ Driving License/ Passport
- Address Proof: Aadhaar Card/ Bank Account Statement/ Passport/ Lease/ Property purchase Agreement/ Driving License/ Utility Bill
- Income Proof:
- For Salaried Individuals: Salary Slips/ Form 16/ Bank Account Statement
- For Self Employed: Previous Year ITR/Bank Account Statement/ P&L Statement and Balance Sheet
- Business Proof: Incorporation Certificate, Address and Vintage proofs, Business PAN card
- Any other document required by the lender
Fees & Charges
Some additional fees and charges that may be applicable on a marriage loan apart from interest charges are given below:
- Processing Fees: It covers the administrative charges involved in the disbursement of a personal loan. Usually, the processing fees can be up to 1% to 6% of the loan amount sanctioned
- Late Payment Charges: It is usually a fixed charge that you will have to pay along with the due amount when you are late in making your EMI payments
- Cheque Bounce Charges: If you miss an EMI payment because the account linked to the post-dated cheque has been closed or is low on funds, you will have to paycheque bounce charges. It is usually applied as a fixed charge of around Rs. 500
- Foreclosure/Prepayment Charges: When you pay an amount in excess of the actual EMI amount, it is known as prepayment. Foreclosure involves paying off the entire outstanding loan amount before the end of the repayment tenure. These usually range between NIL to 6% of the principal amount prepaid plus applicable taxes
FAQs
Q. What is the difference between a personal loan and a marriage loan?
Personal loans come with flexible end-usage and can be availed to meet personal expenses including debt consolidation, medical expenses, education, home renovation, etc. Whereas, marriage loans are personal loans specifically designed to deal with wedding-related expenses.
Q. What all expenses can be covered under a marriage loan?
You can avail wedding loan to deal with all sorts of nuptial or wedding-related expenses including purchase of clothes and jewellery, catering, venue booking, etc.
Q. What is the best credit score to get a marriage loan?
Any score closer to 900 (such as a credit score of 750 or above) is considered to be a good score and increases your chances of securing a wedding loan. It may also help you avail better terms such as a lower rate of interest or a longer repayment tenure on your marriage loan.
Q. How is interest payable on a marriage loan determined?
Marriage loan interest rates may vary from time to time and with different lenders. Interest payable by an applicant also depends upon his/her credit score, nature of employment, age, loan amount, desired repayment tenure, etc.
Q. What is the minimum and maximum loan amount that I can avail on a marriage loan?
Lenders usually offer wedding loans ranging between Rs. 10,000 to Rs. 40 lakh. However, the loan amount may exceed and shall depend on various factors, including your credit score, income, location, employment type, etc.
Q. Is it possible to foreclose or prepay wedding loans?
Yes, you can foreclose/ prepay your marriage loan and save on the interest component. However, lenders can charge a prepayment fee of up to 6% of the outstanding loan principal amount in case you decide to repay your loan before the end of its tenure.
Q. What are the different ways to apply for a wedding loan?
You can apply for a wedding loan via any of the following means given below:
- Online: You can apply for a marriage loan online by checking and comparing marriage loan options offered at online platform
- Offline: You can visit the prospective lender’s branch office and submit a duly filled out loan application form along with the relevant documents to apply for a wedding loan
Q. Can I avail myself a top-up on my marriage loan?
Yes, some lenders do offer top-up loans to borrowers over and above their existing marriage loan to meet additional financial requirements. However, the eligibility for such top-up wedding loans is decided on a case-by-case basis.