A marriage loan is a money that is borrowed from the bank to facilitate a wedding, As long as you qualify for the money, you have applied for, and you are eligible for the instant marriage loan then you will get the cash processed on time. Avail the best marriage loan with Buddy Loan, know your credit score and get maximum benefits with it. Read the article to know the Prepayment vs Repayment of marriage loan.
Uses of Marriage Loan
When you want to apply for a marriage loan, you will need to check the providers of the best personal loans for a wedding so that you can proceed to apply for the loan. Please make sure you evaluate what the available providers are offering and make sure they match your current requirements. You also plan on the repayment process with your partner. If you do not qualify for the loan as an individual, then make sure you also involve your partner and co-sign the buddy loan together. When you apply for loans for wedding expenses, then you both have a collective responsibility to make sure you repay the loan on time.
The loan uses maybe, but are not limited to
Pay for the Venue and Flowers
Everyone hopes for a wedding of their choice, and most of the time, the ideas are grand and exquisite. However, these magnificent ideas sometimes cost more, and you, therefore, might need to take a loan to cover for a super venue and flowers of your choice.
Pay the service providers
The providers of services like food and drinks, the DJ the decoration among other providers, are to be paid for the services they render. The choicer your design and the more classic food you choose then, the more costly your bill is likely to be. Worry not because you can fund these by procuring an instant marriage loan.
Pay for the honeymoon
You may have the money to pay for your marriage, but you lack money to finance your honeymoon. You may apply for a personal loan for the honeymoon. This allows you to take your partner out to a particular destination that will enable you to start your marriage on a high point.
Pay for hire of equipment and Cars.
You need to hire equipment for sound and music, and you also may need to pay the DJ of the day. You also need to hire cars for use on your wedding day. The marriage loan that you acquire pays for the various services like the above that you will need to ensure a successful marriage day.
The Benefits of a Marriage Loan
A marriage loan is a personal loan for a wedding that is procured from the bank in order to facilitate the marriage process. Avail the best marriage loan with www.buddyloan.com, know your credit score and get maximum benefits with it.
Depending on the various providers’ eligibility criteria, the applicant may get any amount up to 15Lakhs. Look out for the provider that will give you the best personal loans for weddings. The instant marriage loan is beneficial to the applicant in various ways as it enables you to have a wedding backed up by a strong financial backing.
When you apply for a wedding loan, the following are some of the benefits you enjoy
Predictable Repayment Schedule:
When you apply for a wedding loan, you get to discuss your repayment schedule and the expected EMIs. In this regard, your repayment schedule is agreed to by both parties. You, therefore, agree to it knowing if it will be comfortable for you. This repayment schedule is therefore predictable to you, and you get to plan your finances accordingly.
Lower interest rate
When you are applying for a marriage loan, you can negotiate for lower interest rates based on your credit score, and your relationship with the bank. The interest rates for the marriage loan are also not very high, and thus, you can apply for a personal loan for the wedding.
Short disbursal time
When you apply for a buddy loan, usually the bank disburses the money in a short period of time. This ensures that you get your money in a concise period. This is an advantage to the applicant as they will have their money in a short turnaround time.
Does not require collateral
Since instant marriage loans are like personal loans in nature, the applicant does not require attaching any collateral. This makes it easier for the applicant when applying for the loan.
Longer repayment tenure
Marriage loans allow for a more extended repayment period. This is comfortable for the applicant as you can plan your finances and finish paying the loan in a period that is comfortable.
Higher limits of borrowing and a short processing time
When applying for a marriage loan, the applicants enjoy the benefit of getting higher amounts of the loan than while using credit cards. They also get to enjoy a shorter processing time for their loan application. This means that they can have money as fast enough in a short period.
The Features of a Marriage Loan
Marriage loans are taken to fund expenses associated with a wedding. The applicant may get any amount up to 15Lakhs, and the interest rate is starting at 11.99%p.a. with a repayment period of up to 60 months. Avail of the best marriage loan with Buddy Loan App, know your credit score and get maximum benefits with it.
Instant marriage loans and personal loans for weddings do not need collateral to be approved. Generally, the loan is used to pay for marriage expenses, and the applicant is not expected to produce that they are wedding. The money may be used to pay wedding service providers or be used as a personal loan for a honeymoon to a vacation of choice.
Among the critical features of the marriage loan, some are listed below:
Does not need collateral
The marriage loan is issued with the salary as security. Hence, there is no need for the applicant to produce any more collateral to guarantee the approval of the loan. Once the bank ascertains that the client fulfils their basic eligibility criteria, then the money is disbursed.
Freedom of end-use
On the application of the Buddy Loan, the applicants don’t have to prove that they indeed will use the money for that purpose. Therefore, the applicant may use the money to consolidate their other existing loans or use it for other pressing needs.
Can be applied online
An instant marriage loan application may be made online without the need to visit the bank physically. This is easier provided the applicant produces the necessary documentation, and the bank representative will verify whether it is correct. The applicant soon gets the money credited into their account, and they can get on with the process.
Flexible interest rate
Depending on the applicant’s credit score and their relationship with the bank when they apply for the marriage loan, then the interest rates may as well be flexible. An applicant with a lower credit score may pay back their money at a higher interest rate.
Applicants applying for a wedding loan, need to only present very basic identification documentation to set their loan verification process rolling.
When an applicant makes an application for a personal loan for a honeymoon, they agree on a flexible repayment schedule with the bank. This is also privy so that he pays the money comfortably and avoids injuring his credit score. These specified terms are agreed upon beforehand.
Prepaying Help in Repaying my Marriage Loan
Having a long-term loan can sometimes weigh on you a bit too heavily. However, when you have the option of prepaying the loan, then you should grab it as fast as possible. Avail the best marriage loan with Buddy Loan, know your credit score and get maximum benefits with it.
There are several benefits to paying off your buddy loan early:
You Save on Interest
When you repay the loan to completion, you then save on interest, and you no longer have to budget for monthly payments. While availing the loan the interest rates are starting at 11.99%p.a.
You Access More Cash
When you are done paying off your marriage loan, then you have access to more money. This enables you to embark on an investment journey.
You get to Qualify for Another Loan
Many lenders may not allow you to have more loans at once, and therefore when you pay off your existing loan, it increases your score and income to debt ratio; hence you are better placed.
You Improve your CIBIL Score
This betters your chance at another loan approval in the future. As you are considered a faithful borrower.
However, when you apply for your wedding loan, you need to be careful when picking your loan terms, because some loan providers may include penalties when paying off the wedding loan. Sometimes though you may as well pay these charges since you end up saving on the amount of interest and high monthly installments
You may also decide to make payments for the principal amount so that in the end, you pay less interest. When you pay monthly installments, then the amount is aimed to pay both interest and principal.
The benefits of principal-only payments are beneficial in the following ways.
You Pay off the Loan Faster
You reduce the overall length of the loan by paying off the amount borrowed first. You are left with interest to pay. This way, you clear your loan fast enough.
You Pay Less Interest
Interest accrues on the balance of the principal amount. Therefore, when you pay off the principal, you end up paying less money. When you make payments using the regular EMI method, the money you pay mostly caters for other fees and interest. This, as a result, will have you paying for your loan for a longer time. The trick is in prepaying the loan so you can enjoy the benefits that come with it.
Repayment of Marriage loan:
After the wedding and honeymoon, it’s time to start making plans to make repayment of your marriage loans or begin making plans to start making payments. Avail the best marriage loan with Buddy Loan, know your credit score and get maximum benefits with it.
You may be looking to be debt-free and thus straining on how to solve this puzzle and make your payments quickly.
You are trying every trick possible so that you reduce your payment period to stay debt-free and clear payments for your wedding loan.
Make Bi-Weekly Payments
When you are making payments to your financial provider, try to make at least two payments a week when you can. When you do this, you will eventually shorten the time you take paying the loan, and you will also reduce the amount of interest that’s due. In the long run, you will have paid for more instalments, thus clearing your loan faster.
Round-Up the Payments
When you apply for a marriage loan and the EMI calculated for you, ensure you pay the instalments without fail. You may also decide to round up the figures to whole figures. That way, you realize that through your loan tenure, you will have made enough payments to save up on some interest.
Find Extra Money
Best wedding loan providers will advance you the loan based on your salary and against your payslip. When you start remitting your EMI, you may also try to look for more sources of income that may allow making more payments to the bank to clear your instant marriage loan.
Make One Extra Payment
When servicing your EMIs, sometimes, you may not have extra money to increase the size of the EMI. However, you may get some extra cash from a bonus, lottery, or some dividends. You can make one more payment once or twice a year to reduce your loan amount.
Make an Advance EMI Payment at the Time of Loan Disbursement
After your honeymoon loan is credited to your account, you can choose to make an advance payment so that your principal amount is reduced and, therefore, a reduction in the overall interest rate. This ensures that you soon finish paying for your wedding loan.
Foreclosing the Loan
After paying for your marriage loan monthly instalments, you may be lucky to get a lump sum amount. You can pay the whole amount of loan that is payable. This clears you off the debt. However, you have to be careful that you are not incurring a foreclosure fee.
Aadhar Card is Mandatory for a Marriage Loan
The Aadhaar card was launched by the government as a requirement for citizens to use certain services. These are services offered by the government and the private sector. Avail the best marriage loan with Buddy Loan, know your credit score and get maximum benefits with it. The PAN card is used when
- Applying for a SIM card
- Applying for a PAN number
- Open bank accounts
- Apply for a passport
- Loan application process
- Process tax remittance among other uses
Benefits of the Aadhaar Card
- Single identity for every Indian
- Easy Access to Financial Services
The Aadhaar card makes it easy to access financial services and improves the ease with which KYC is conducted by the bank
- Single document for multiple proofs like citizenship, address, age, photo, and identity
Given the number of personal details on the card, then it can prove more information than any other document.
- The card allows you to confirm your identity very fast and without any confusion. Therefore, you will get the money credited into your account as fast, and you get on to using the money.
Impact on Personal Loans
The banks no longer require the customer to have a string of documentation when they apply for the buddy loan. The Aadhaar card covers up for that. The best wedding loan providers require you to link your online platforms with your Aadhaar card.
This document is widely accepted by all honeymoon loan providers. You may also get an Aadhaar card-based loan which requires you to submit the following documents for salaried people
Residence proof: Passport/Ration Card/ Driving License/Utility Bill/Rent Agreement
Latest Form 16
- Last three months’ bank statements or six months’ bank passbook
- Last three months’ salary slips or current salary certificate
For self-employed people, they need to submit the following
- PAN Card of the applicant or their company/firm
- Latest ITRs along with income computation, balance sheet, profit & loss statements – all certified by a CA.
- Business continuation proof
- Proof of Identity: Aadhar Card/PAN Card/Passport/Voter ID Card/Driving License
- Residence proof: Passport/Ration Card/ Driving License/Utility Bill/Rent Agreement
- Income Proof: Latest 6 months’ bank statements
If you don’t have an Aadhaar card, then you can fill out Form 60, and you set in motion your Aadhaar card application process. The card allows you a host of advantages across all private sector and government services. The application process is easy and fast. Once you fill in the form and submit the required documents, then you are on your way to getting the number.
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