Marriage is a culmination of two individuals who live their lives together, naturally almost everything would start linking together in their lives. Family, friends,work, and most importantly your finance and wealth. There are some misconceptions about how getting married may or may not influence credit reports and credit scores. Let’s decode some of them in this article!!
Indian weddings have always been grand! It is larger than life events that have evolved into long lasting celebrations, with celebrity visits, extravagant performances all lasting over a week. Many individuals use marriage loans to fund their big day. Several banks offer affordable personal loans to cover wedding expenses. But does wedding loan effect on Credit score dramatically or is the effect same? Keep on reading to know more!
What are Marriage Loans?
Marriage loans are taken to fund the expenses that come with a wedding. For anyone who fulfilled the criteria required for a marriage loan, getting a marriage loan online has become a stress-free, joyous ride in India.
The interest rate varies from lender to lender, depending on several factors from the borrower’s credit history, the amount borrowed, and so on. Marriage loans do not have any end-usage restriction, i.e making the loan amount fluid, you can use your marriage loan for any purpose as desired.
A marriage loan’s credit score will be similar to how any personal loan affects your credit score. Hence when you apply for a marriage loan, it is best to keep several factors in mind to have a stress free method on paying your EMI.
To ensure a smooth transition of payment of loans there are some things you can keep in mind while applying for a marriage loan-
- Do not borrow more than what is required.
- Plan your EMI’s to improve your credit score.
- Be aware of all the extra charges that may come up from processing fees, the fine amount and so on.
Many places like Buddy loan and others offer loans at low interest rate, flexible tenures and a payable EMI, compared to other credit lines in the market. Users can download the Buddy Loan app to start their loan journey and satisfy all their queries.
Financial needs are almost always unpredictable, keeping this in mind the Buddy Loan app has been designed to cover all the stakes and give you innumerable financial solutions. Buddy Loan helps you engage with leads from across the country, helping you make an informed decision about loans and how to improve credit score.
What Does A Credit Score Mean?
Simply explained, a credit score is a technique for a financial institution to evaluate a person’s financial activity in order to determine how much credit they can lend them and at what interest rate. All financial institutions will assess your personal credit score the same way, and it will look like an index of all of your significant financial transactions.
Your credit score could go up or down depending on a number of variables. You will have a healthy credit score as long as you have a consistent source of income and diligently repay any loans.
Will A Marriage Loan Affect My Credit Score?
No, a marriage Loan does not specifically affect your credit score. A marriage loan effect on credit score is the same as any other loans. Your bank assigns you a credit score based on your credit history, which has a bearing on your financial journey. As long as you pay your EMI on time and do not have any dues, your credit score will improve and will not change.
Credit Scores and Wedding Loans:
When applying for a loan it is important to calculate the loan amount you require with competitive interest rates while estimating your requirements for each event. Nationalized banks, NBFCs and other financial firms require a distinct set of documents for loan approval.
Eligibility to wedding loans depend on credit score, financial behavior and time of loan approval.
At Buddy Loan, lenders from various banks and financial institutions disburse personal loans for marriage at competitive interest rates on the merit of credit score, making loans an easy journey.
Factors that affect the credit score
Since Wedding loan is a personal loan used for wedding celebrations, the credit utilization is a challenge under limits. If you use over 30% of the credit, it will make way into a negative scale.
Buddy Loan and credit limits run parallel with each other. We estimate your score and enhance it with a personal loan while building credibility, a long process which will lead to high scores. Both EMI and interest rates afflict changes in your credit score. There are some factors you can consider to improve your credit score:
- Planning, Organising and paying your EMI on time will help you increase your credit score.
- Utilizing too much available credit, missing out on settlement dates.
- Credit portfolios – This is having a mix of scores with a credit card, car loan, mortgage or even credit products.
- New credit – the number of new credit lines you have access to and those you have recently opened.
- Exploiting available credit – you have a hand’s on right to use your credit score, yet, using it with optimum interest is important. Over/deliberate use can lead to a red flag with creditors.
- Short credit time: Higher the credibility period, higher the credit score. Creating a credit score in a short time is less stable.
Marriage Loan at Buddy Loan
You may avail a loan almost instantly at Buddy Loan. A marriage loan application is just a minute away with this app. It is instant, seamless, and requires minimum e-documents. Marriage loans in Bangalore are accessible from many financial firms’ aggregators.
You can mark a specific ratio of income and expenses to plan your marriage loan amount and EMI payout. There are several firms to help you with a marriage loan in India. You can qualify for a marriage loan amount if you are salaried, professional, self-employed and even earn a passive income.
At Buddy Loan, the interest rate is competitive. It can help a highly credible profile with easy loan sanction and low-interest rate. Lenders have vivid sanctioning criteria that can fit your interest in a loan application.
Choose a lender and submit your e-documents with the Buddy Loan app. Marriage loan online is easy and seamless. They provide an opportunity to build your credibility.
Also Read: Points to Consider When Getting a Marriage Loan
Breaking Down Marriage Loan Online
What documents are necessary for a wedding loan?
Proof of identity and income serve as a license for availing a loan. Sets a fair consent and expectations for lenders to approve a personal loan. Buddy Loan requires a minimum e-documents to qualify your profile and credibility for a loan sanction.
Each lender has a distinct set of document requirements. Provide the proof of income, identity and address as a basic document set. At each point, it can validate the information you’ve entered.
Wedding Loan Eligibility
A marriage loan can be availed by anyone, as long as they meet the criteria specified by the bank. The basic criteria required are mentioned below-
Eligibility
- Age – 21 years onwards
- Nationality – Indian
- Employed – Public/Private
- CIBIL(credit score) – 750 or higher
- Monthly Salary – Salary starting at Rs 22,000
Documents Required
- KYC- Aadhar card /PAN card/ Passport/ Voters ID
- Employee ID Card
- Salary slips of last 3 months
- Bank account statements of previous 3 months
Note- These criteria are the basic criteria required to be fulfilled by an individual, the criteria can change depending on the banks and place you live.
Compare Interest Rates of Various Banks
When applying for a marriage loan, there are several factors that you can keep in mind. Every bank offers different interest rates, it is important to check and compare all of them and find a bank that offers rates that match with your needs and financial situation. Below you can find some interest of banks that offer marriage loans.
| Banks/NBFCs | Interest Rates(p.a) | |
| State Bank of India (SBI) | 10.90 -15.40% | |
| ICICI Bank | 10.75% onwards | Apply Now |
| Axis Bank | 10.49% onwards | Apply Now |
| HDFC Bank | 11% onwards | Apply Now |
| Induslnd Bank | 10.49% onwards | Apply Now |
| Kotak Mahindra Bank | 10.99% onwards | Apply Now |
| Tata Capital | 10.99% onwards | Apply Now |
| Bajaj Finserv | 11% onwards | Apply Now |
| IDFC First Bank | 10.49% onwards | Apply Now |
You can also compare the various processes and eligibility criteria below-
| Banks/NBFCs | Features | |
| State Bank of India (SBI) | Loan Amount- Up to Rs 20 lakh
Tenure- Up to 6 years Minimum Monthly Salary – rs15000 p.m Processing Fees- Nil Pre-Closure Charges- Refer to bank Part Payment Fees- Refer to bank |
|
| ICICI Bank | Loan Amount- ₹ 50,000 to ₹ 25 Lakhs
Tenure- 12-72 (Flexible repayment option) Minimum Monthly Salary- As per bank Processing Fees- Refer to bank Pre-Closure Charges- Refer to bank Part Payment Fees – Refer to bank |
|
| Axis Bank | Loan Amount- Starting from Rs. 50,000 up to a maximum of Rs. 15 Lakh
Tenure- Up to 36 months Minimum Monthly Salary- ₹ 15000 p.m Processing Fees- Refer to bank Pre-Closure Charges- Refer to bank Part Payment Fees- pre-payment charged on amount of part payment
|
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HDFC Bank |
Loan Amount-Up to Rs 40 lakh
Tenure-Up to 6 years Minimum Monthly Salary- Rs 25000 p.m Processing Fees- Up to Rs4999/- Pre-Closure Charges- Allowed if the borrower has paid at least 12 EMIs. For salaried:
Part Payment Fees- Allowed if the borrower has paid at least 12 EMIs. For salaried:
|
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| Induslnd Bank | Loan Amount – 30,000 – 50 Lacs
Tenure- 12 to 60 months. Minimum Monthly Salary- Rs 25,000 Processing Fees- up to 3% of loan amount. Pre-Closure Charges- 4% of the principal outstanding after repayment of 12 EMIs. Part Payment Fees- nil |
|
Kotak Mahindra Bank |
Loan Amount- Rs 50,000 to Rs 25 lakh
Tenure- 1 to 5 years Minimum Monthly Salary-
Processing Fees – Up to 3% of the final loan amount plus applicable taxes. Will be deducted from the loan amount at the time of disbursal. Pre-Closure Charges – Refer to bank Part Payment Fees –
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| Tata Capital | Loan Amount- ₹75,000 – ₹35,00,000
Tenure- 12-72 months Minimum Monthly Salary- Rs. 20,000 Processing Fees- Refer to bank Pre-Closure Charges- Refer to bank Part Payment Fees-Refer to bank |
|
| Bajaj Finserv | Loan Amount- Up to Rs 25 lakh
Tenure- Up to 5 years Minimum Monthly Salary- ₹15,000 p.m Processing Fees- Up to 3.84% of the loan amount Pre-Closure Charges-
Part Payment Fees- 4.72% on prepayment amount paid |
|
IDFC First Bank |
Loan Amount- Refer to bank
Tenure- up to 60 months Minimum Monthly Salary- Processing Fees- 3.5% is deducted from the bank loan for marriage at the time of loan disbursal. Pre-Closure Charges- 5% of the entire bank loan Part Payment Fees- Refer to bank |
|
| Punjab National Bank(PNB) | Loan Amount- Up to Rs 20 lakh
Tenure-
Minimum Monthly Salary- Depends on the bank Processing Fees- Up to 1% Pre-Closure Charges-Refer to bank Part Payment Fees-Refer to bank |
Increase your credit score by applying for a loan through Buddy Loan app. The lenders help you customize your EMI payout based on your income and extend your loan tenure of 60 months. This leaves you with very less room for defaulting on monthly payments.
In Conclusion
Marriage loan is easy to avail foreseeing certain steps. Understanding loan application details ,process,Pre-planning your unforeseen expenses which will help affect the credit score. Planning a grand wedding will need aesthetic details for the venue, catering, photography, and shopping essentials
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Having any queries? Do reach us at info@buddyloan.com
Frequency Asked Questions
Q. Will my credit score be affected with my spouse’s credit score after getting married?
A. Getting married won’t impact individual credit scores; joint applications might affect both.
Q. Will getting married cause my credit report to automatically merge with my spouse’s?
A. When applying jointly for a loan, individual credit histories are assessed; they are not combined, so your credit report and your spouse’s stay separate.
Q. Can I foreclose or prepay my wedding loans?
A. Some banks permit early loan repayment with possible prepayment fees up to 6% of the outstanding balance.
