A wedding is one of the most important events in an individual’s life. There is a myriad of expenses involved in just this one affair. One requires to book the venue, choose the caterer, beautician and photographer. Other wedding expenses may include jewellery, renovating one’s house or buying a new car.
As a result, one requires to have sufficient funds to make the wedding a success. Hence, one can opt for a loan against property for wedding. This is meant to cover the expenses that are required.
Benefits of availing of a wedding loan
There are multiple benefits of taking a loan against property for a wedding:
- Lower rate of interest
The loan against property interest rate is lower than that of a personal loan. This reduces the interest outgo and makes the loan repayment affordable.
- Fast fund disbursal
Funds are disbursed within 72 hours of application and submission of documents.
- Seamless application
Applicants can enjoy a seamless application process for a loan against property. This process does not take up much time. One receives the approval within 24 hours.
- Easy to meet eligibility criteria
The eligibility parameters are easy to meet for applicants. One can choose a tenor up to 18 years as a salaried employee. On the other hand, for a self-employed individual, one can choose a tenor up to 14 years. Besides, applicants must also know how his or her credit score affects the loan against property eligibility.
- EMI is lower
Tenor and EMI share an inverse relationship. Hence, the longer the tenor, the lower is the amount of EMI payable. One can check this with the help of a loan against property EMI calculator.
- Loan to Value Ratio
When one opts for a wedding loan, one can pledge any property as collateral. Borrowers are able to get a sanction between 70-75% based on the market value of the property. In addition, the LTV also depends on whether the property is residential or commercial.
What are the eligibility criteria?
Individuals must meet the following eligibility criteria to avail of a loan against property for a wedding:
- Individuals must either be salaried or self-employed. They must have a steady income.
- The applicants must be a citizen of India and should be between 25 and 70 years of age.
- Their business must be more than 5 years old.
- Individuals should have at least 3 years of work experience.
- They must be citizens of India.
- Applicants must be between 23 and 62 years old.
Documents required to apply for a wedding loan
One must keep the following documents handy while applying for a loan against property for a wedding:
- KYC documents – PAN card, Aadhaar card, Voter ID, Driving Licence, etc.
- Employment proof – One must be able to show their proof of employment. For self-employed individuals, it is crucial to have the Agreement of Partnership and the registration certificate.
- Income proof – Borrowers must have their latest salary slips, income tax returns and Form 60. The applicants must have bank account statements from the previous six months. This is applicable to self-employed and salaried individuals. For the former category, one must be able to show their profit and loss statement.
- Property documents – They must also have property documents such as the registration certificate etc.
How to apply for a loan against property for a wedding?
It is important to know how to apply for a loan against property. Applicants can follow the step-by-step guide below:
Step 1: Visit the portal of the lender.
Step 2: Enter essential details such as name, address, income proof, etc.
Step 3: Navigate to the tab, ‘Loan Against Property’.
Step 4: Fill the form, and the company’s executives will get back to you.
Additionally, to streamline the application process, lenders extend pre-approved offers. These offers shorten the whole process and save time. Such offers are available on financial products such as home loans, loans against property etc. Prospective customers can submit their essential contact details and check their pre-approved offers.
Above outlined was everything that one needs to know before applying for a loan against property for a wedding. One can choose to opt for this due to the various benefits it offers.