Despite the present restriction of carrying out weddings and other functions with a limited number of guests, many people still like to host grand wedding ceremonies in India. They see it as a lifetime event and try to provide the best experience to their relatives and close ones. However, hosting a lavish wedding often means that one has to apply for a loan from a bank or any other financial institution. The key advantages of applying for a wedding loan are given below:
Keeps savings intact
Wedding loans are also popular in India because they allow an individual to complete the rituals and ceremonies without any financial stress. Also, it is convenient to use these loans because it helps a borrower to keep his savings and investments intact.
No restriction on the usage
Once the wedding loan gets approved, it can be used for other reasons as well. For example, if some amount is left with the borrower even after the wedding then he can use it for travelling, honeymoon plans, or any other purpose.
Collateral-free loan
As it is a type of personal loan, no collateral is required while requesting a wedding loan. Getting a collateral-free loan is important because it secures an individual's assets that he might have pledged if the lender required collateral for processing the loan. However, individuals who have a poor credit score might have to provide collateral or opt for a high wedding loan interest rate.
Easy repayment
A wedding loan gives an individual the choice of choosing a loan tenure that can provide him complete convenience while repaying the loan amount through EMIs. It is often observed that banks and finance firms offer flexible tenure to the borrower and he gets to change the repayment schedule based on his income, financial objectives, and cash inflow.
Online application & quick approval
With most lenders operating through apps and online portals these days, a borrower can apply for a wedding loan without bothering about leaving his home. Also, the documents can be attached along with the online form and some lenders even provide the online documentation facility by making the CKYC procedure available. Therefore, getting a wedding loan is much more convenient these days.
As the eligibility of the borrower is considered for approving a wedding loan, one need not submit too many documents while applying for it. Also, the loan gets approved in a minimum time frame allowing the borrower to plan his wedding nicely.
Once the loan gets sanctioned, the borrower can withdraw it from his account as and when required. Also, some lenders offer Flexi loans that charge only the interest on the amount that is withdrawn.
A flexi loan is a type of personal loan that NBFCs offer to individuals who need funds on an immediate basis. The credit profile of the individual is checked before granting a pre-approved loan limit. The borrower can withdraw funds up to this limit and repay them in easy installments. The best thing about Flexi loans is that one can repay them before the loan tenure without bearing any extra charges.
To make things simpler, many private banks and finance companies have started offering pre-approved loans to their customers. For example, Bajaj Finserv offers pre-approved personal loans, credit card, medical loans and wedding loans, to their selected customers. Checking the eligibility and pre-approved offers is made simpler by allowing the borrowers to only provide their name and contact information to get the list of pre-approved offers before applying.
Also, checking pre-approved offers is more convenient than applying for loans as it does not waste time and effort required to fill the application form and submit it with the required documents.
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