Top 3 Reasons why You Should Avail Marriage Loans to Fund Your Child’s Marriage

Every Indian parent dreams of seeing their children getting married one day. Undoubtedly, the day of their child’s marriage is an extremely important event for which families will spend decades saving up to fund the milestone event. Considering that even a modest Indian wedding can cost several lakhs, marriages are anything but cheap.

Food, venue, clothes, entertainment, and other expenses are all basic requirements that will run up a high bill. Almost every parent will sacrifice and save in order to provide a lavish celebration for their children’s marriage. But not every family has this sort of money saved up or readily accessible to finance these costs. In such a scenario, taking a marriage loan is highly beneficial.

A marriage loan covers all the costs of a marriage, such as food, venue, clothing, entertainment, and so on; it can even cover the couple’s honeymoon expenses! Nowadays, it’s very common for Indians to apply for a marriage loan in order to fund wedding expenses. Almost every bank or lender will provide marriage loan to individuals who are seeking the same. They have good repayment tenures, affordable interest rates and low EMIs.

Many people have a misconception that taking a loan is burdensome. But the actual reality is that a marriage loan can be quite affordable with low EMIs if you avail the loan on a longer repayment tenure. Additionally, when you take out a marriage loan to pay for the wedding expenses, you can keep your savings and other financial assets intact.

Reasons to Avail a Marriage Loan

The benefits of taking a marriage loan are numerous, but we’ll outline a few of them below:

  • They are quick and easy to avail

Paying the costs for a wedding often need to be done in advance, such as booking a venue for many months and sometimes even more than a year in advance. In order to secure your desired booking, you’d be required to pay an upfront deposit or booking amount.

If you were to take this loan from a bank, you’d have to fill out lengthy paperwork and wait several weeks just to get an approval or rejection, and then wait other several weeks to get the amount disbursed to your account. As a result, the long-time involved in getting the amount would mean that you would end up losing the venue or other requirements for the wedding.

Fortunately, modern-day digital lenders can approve and disburse loans in as little as three days or less. They also require fewer documents than bank loans and have a simple application procedure.

  • Marriage loans don’t need collateral

Loans have generally required collateral, which means that a borrower must pledge their assets to the lender against the loan amount, they wish to avail. This becomes an issue, because not all people have collateral that they can pledge against a loan, and even if they did, some individuals may not be willing to pledge collateral to avail a loan.

Also, arranging collateral as security for the loan is bothersome in the first place- and no one has time for that when they’re planning a wedding! If you need a marriage loan, you won’t have to worry about having to arrange collateral to get your loan as they are unsecured.

  • Taking a marriage loan can boost your CIBIL score

Opting for a marriage loan has the added benefit of building your credit history and boosting your credit score. An individual’s credit history is comprised of the details of the type of credit availed as well as the borrower’s repayment habits.

We know that when an individual fails to make their credit card payments on time, it negatively impacts their CIBIL score. On the other hand, when an individual avails a loan and consistently repays the EMIs on time, it increases one’s credit score and builds a positive credit history.

One of the other factors that have an influence on your credit score and credit history, is the amount of credit availed. Taking out a hefty marriage loan for your child’s wedding and repaying the EMIs on time demonstrates to the lender that you have the financial capacity and trustworthiness to repay large sums. This will increase your CIBIL score and give you eligibility for larger loan amounts in the future, at excellent interest rates and repayment tenures.

Conclusion

Taking out a marriage loan is an excellent way to meet the needs for your children’s wedding expenses, without having to use your own savings or sell off assets to pay for the required expenses. Apply for children’s marriage loan and give them a wedding celebration that will be cherished forever!

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