Weddings are special occasions. It’s common for people to put in a lot of time and effort when it comes to weddings — people take several months to find the right mix of caterers, designers, make-up artists, wedding planners, jewelers, etc. A traditional Indian wedding could range from INR 20 lakhs to INR 1 Crore. In some cases, it could be higher. Despite saving for years, one may still be short and need more funding.
In this case, a loan against property could be a good option for financing a wedding. The process of getting a wedding loan is easy, the repayment tenor is flexible, and the wedding loan against property rates offered are relatively lower than personal loans.
Top 4 Reasons Why You Should Get a Loan Against Property For Wedding
A loan against your property is a great way to pay for all of your wedding costs because of the following reasons.
Loans Against Property Interest Rates are Low
Loan against property interest rate is one of the most essential considerations. That’s why it makes perfect sense to get LAP and use the money to throw a lavish wedding.
It is Easy to Apply for These Loans
Everything from applying for a loan to receiving funds is quick and easy. Moreover, you can apply online and the process is extremely straightforward. Lenders help you through every step of the transaction, all the way to the end. You can easily apply online for a loan against your property to pay for a wedding.
Just log on to the lender’s website page and choose “Loan Against Property”. Next, fill out the online form with a few basic details and upload the documents.
After that, someone from the lender’s team will get in touch with you to move the process along. Once your application is approved, verification checks, paperwork, and an evaluation of the property is done and the loan agreement is signed, your loan is approved and the money is transferred to your bank account.
Easy Paperwork
When you apply for a loan, if the loan process involves simple paperwork, life becomes easier. If the list of documents is clear and concise at the start, it makes the process easy and convenient. If you are looking to apply for a wedding loan, here are the documents that both salaried and self-employed people need to submit.
All Applicants have to submit these documents:
- Proof of Identity: PAN card, voter ID card, employee card, etc.
- Proof of Residence: Driver’s license, Aadhaar Card, etc.
- The last six months’ bank statements
- Property documents
Applicants who are salaried will also need to send in:
- Income proof: Pay slips from the last few months, copies of your ITR, etc.
Self-employed Applicants will also need to send:
- Income Verification: ITRs for the last two years, with calculations, audited financial statements, etc.
- Proof that a business is running
If there are any co-applicants, the lender will ask for their documents also. Please keep in mind that, depending on your profile and lender’s rules at the time you apply, you may also be asked for other documents.
Long Repayment Tenor
People can opt for a personal loan to finance their wedding. However, personal loans are not only more expensive but also come with a short repayment tenor. Loans against property, on the other hand, come with a long repayment tenor. Borrowers get up to 20 years to pay off these loans.
Loan Against Property Eligibility Criteria
Since the property itself is used as security against the loan, being approved for a loan against property is a simple process.
Here are the eligibility criteria:
- At the time they apply for a loan, applicants must be at least 21 years old.
- When the loan is paid off, applicants must be under 60 years old (the age of retirement).
- Salaried applicants
- Applicants can work for an MNC, a listed public limited company, a government agency, a private limited company, a company that is not listed, a partnership, or a sole proprietorship.
- Applicants must make at least INR 1,20,000 per year.
- Applicants need to have a CIBIL score of at least 700.
- Applicants who are self-employed:
- Applicants can be self-employed business owners, sole proprietors, self-employed professionals like doctors or accountants, or people who own a partnership firm, private limited company, closely held company, or company that is not on the stock market.
- Applicants must make at least a certain amount of money each year after taxes, according to profession and industry guidelines.
- Applicants need to have a CIBIL score of at least 700.
Also, things like your credit history, history of paying back loans, ability to pay back loans, nature, and value of the property to be pledged, etc. will be looked at to figure out if you are eligible overall.
Final Thoughts
If a wedding is coming up in your family and you own a home or business outright, it would be smart to take out a loan against property on it instead of selling off your investments or savings.
