Read useful information on marriage loans in
India
Marriage Loans
Marriage is one of the most important events in a person's life. You want to make sure that all the arrangements are perfect and match the occasion. Marriage loans ensure that money is not a hindrance in marriage preparations. Several Indian banks offer loans for marriage. The loan is available for meeting the expenses of marriage of your own self as well as that of your daughter, son dependent sister and dependent brother.
The marriage loan amount that can be sanctioned varies from bank to bank and from customer to customer, depending on a number of factors, such as, security/collateral offered by the customer, repayment capacity of the borrower, age of the borrower. Generally, it is twice the net annual income of the applicant. There is no fixed interest rate for marriage loans in India. It is mostly based on the current market rate, at the time of taking the loan.
For the loan to be disbursed, the bride and the groom should not be less than 18 years and 21 years of age respectively. Anyone can apply for the loan. He/she has to fill a form at bank outlet. The bank charges processing fees, at the time of submission of the form, which varies from one bank to the other. The repayment of the loan can be done either through monthly/quarterly/half yearly installments or under Equated Monthly Installments (EMI) scheme.
Eligibility for Marriage Loan
Though the eligibility criteria vary from bank to bank, following major conditions should be fulfilled:
- Minimum Age for loan: 21 years (groom)/ 18 years (bride)
- Maximum Age of Applicant at the Time of Loan Maturity: 60 years
- Net Annual Income: Rs. 1,44,000 pa
- Years in Current Job / Profession: 1 year
- Years in Current Residence: 1 year
Documents Required
Salaried Individuals
- Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
- Address Proof (Ration card Tel/elect. Bill/ / Passport copy)
- Bank Statement/ Passbook, for last 6 months
- Latest salary slip or current dated salary certificate, with latest Form 16
- Two passport size photographs
Self Employed Professionals & Businessmen
- Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
- Address Proof (Ration card Tel/electricity Bill/ Passport )
- Bank Statement/ Passbook, for last 6 months
- ITR for the last 2 yrs, along with along with computation of income, Balance Sheet & P&L Account (certified by a CA)
- Qualification Proof of the Highest Professional Degree
- Proof of Continuation (Trade License /Establishment /Sales Tax Certificate)
- Other Mandatory Documents (Sole Proprietorship. Declaration. Or Certificate. Copy of Partnership Deed, Cert. Copy of MOA, AOA & Board resolution.)
- Two passport size photographs
Other Information
- Loan processing charges are generally levied, equivalent to 2% to 3% of the loan amount.
- Prepayment of the loan is possible after 180 days of availing the loan. In this case, certain charges are levied, as per the bank's norms.
- The maximum limit of marriage loan is Rs. 2 to 3 lakh, varying from one bank to the other.
