Weddings are quite an expensive affair in India. From organizing a pre-wedding shoot and accommodation for guests to finalizing the venue and catering, the related expenses can cost you a fortune. The expenses are further likely to increase if you are planning a destination wedding or perhaps looking to hire a wedding planner. In such cases, instead of depleting your savings account, you could opt for a loan against property for wedding.
A loan against property is a secured loan that can be taken against an immovable property for a fixed period. One of the biggest advantages of this is that there is no restriction on the end use of the funds obtained.
Here is this article, let’s take a look at the top 10 benefits of a wedding loan.
Top 10 Benefits of a Loan Against Property for Wedding
High Loan Amount
The loan amount offered against a mortgaged property is usually of high value, starting from Rs. 25 Lakh. This certainly takes away your financial trouble to some extent, as you need not worry about the wedding expenditures and can wholeheartedly enjoy the event and functions.
Lower Rates of Interest
Since property loans are secured in nature, the interest offered is also relatively lower and affordable in comparison to personal loans. This typically ranges from 8.25% to 15%, depending on the type of interest chosen (fixed or floating), and a few other factors, such as your credit history, CIBIL score, employment status etc. It is always a good idea to compare the different loan against property interest rates before proceeding.
Longer Repayment Tenor
Unlike other unsecured loans such as personal loans, the tenor of a loan against property for wedding extends over a long period, up to 18 years. This reduces your monthly EMIs and makes repayment easier. In fact, you could make use of a loan against property EMI calculator to get an accurate evaluation of your monthly dues.
In case you already have a property mortgaged at the bank, you can reach out to a reputable financial institution to avail a n additional loan or top-up loan to fund your wedding expenses. However, make sure you have enough money to repay the additional amount along with your current loan EMIs.
Many lenders also offer a balance transfer facility on a wedding loan. This allows the borrower to transfer the outstanding loan amount to another financial institution and fetch better interest rates on it.
A marriage loan typically has an LTV of 70-75%, so if you are aiming for a high-value loan, this could be highly beneficial.
The processing of a wedding loan is usually quick. So, if you are urgently in need of funds for the big event, you can get the amount credited to your account sooner than expected, usually within 72 hours of document submission.
Owing to simple online procedure, a wedding loan application requires minimal documentation, thus saving you from all the hassle of paperwork.
One of the best advantages is the loan against property tax benefits under Section 24(b) and Section 37(1) of the Income Tax Act (ITA). Both the Sections allow tax exemptions on the paid loan interest.
A flexi loan works the same way as an overdraft facility offered by most banks. This allows you to withdraw the required loan amount from the pre-approved credit limit and make prepayments as per convenience.
How to Avail of a Loan Against Property for Wedding
The easiest and fastest way to apply for a wedding loan is by filling the online application form. Simply follow these steps:
- Visit the lender’s portal and access the application form
- Enter your financial, property, and personal details
- Submit the duly filled application form along with relevant documents (this includes your KYC documents, income proof etc.)
- Await verification of property and all documents from an authorized representative
- Once verified, get the loan sanctioned by your lender
- Finally, get the amount disbursed to your account in 3-4 working days
Before you send in your application, make sure you meet the loan against property eligibility criteria for faster, seamless approvals.
While a loan against property for wedding can fulfil your monetary requirements and help you rejoice with your loved ones without holding back, you must be prudent about the amount you are opting for. Avoid going overboard just because you are being offered a higher amount. Remember, you will eventually have to repay the full amount. Also, be sure to opt for a competitive lender who can make the experience effortless, convenient, and easy.