FindItMore | Indian weddings are a mix of three E’s – Exuberance, Elation, and Extravagance. The last E of Extravagance not only incurs substantial cost, but gives an Indian wedding its true identity.
Consider this: There’s a destination wedding planned after three months. Total expenses of this destination wedding are expected to be approximately Rs. 85 Lakh.
Such an amount is outside the capacity of personal loans. Further, a personal loan would have a much higher rate of interest as compared to other alternatives. This makes Loan Against Property for Wedding a convenient option for financing.
Why Opt for a Loan Against Property for Financing a Wedding?
- Longer Repayment Tenure
A loan against property for weddings can be repaid through a longer tenure. A more significant period of repayment means equally distributed lower monthly instalments that borrowers can repay comfortably.
- Lower Interest Rates
Being a secured loan, interest rates for such loans are also lower. Further, applicants who fulfil Loan Against Property Eligibility Criteria satisfactorily can even negotiate the interest rates with the lenders.
- Availability of Top-Ups
Loans against properties also come with the availability of top-ups. In case the borrower already has been repaying a mortgage loan, he/she can easily opt for a top-up as an additional amount to finance the wedding.
- Secured Loan
A loan against a property for weddings is a secured loan. This implies that the financial institution grants the funds against a property. The attachment of a security to the credit serves to lower the interest rates for the borrower. Thus, repayment for him/her becomes much more accessible.
The benefits of availing a loan against property for wedding make it a very feasible financing alternative. However, applicants must also be sure of their credibility to finance the repayments.
Moreover, before one finally decides to opt for a loan against a property to finance a wedding, he/she must be sure of a few factors.
- Can the individual afford the forfeiture of the property in case of non-repayment?
- Does his/her income suffice to provide stable repayment of EMIs?
What other Factors Assess the Repayment Abilities of an Individual?
- CIBIL Score
Prospects aiming for a loan against property for wedding must have an adequate CIBIL Score to ensure lenders of their repayment abilities. A CIBIL Score of over 750 ensures that individuals are worthy of availing a credit. This also means that applicants must have all their existing obligations covered.
In case there’s any repayment due, they must immediately be cleared before applying for a loan against a property for weddings.
- Income of the Applicant
Applicants for a loan against property must have enough income to give lenders the confidence to sanction such a substantial credit. As proofs of income, salaried individuals would need to furnish latest salary slips along with bank account statements of the previous three months.
Self-employed individuals, on the other hand, would only require furnishing bank account statements of the previous six months.
Such loan against property documents required for its sanctioning vouch for the credibility of a borrower.
Who does an Applicant Approach for a Loan of this kind?
NBFCs grant applicants with a Loan Against Property for wedding at plausible terms. Salaried individuals can avail a loan of up to Rs. 1 Crore, while the amount available for self-employed individuals goes up to Rs. 3.5 Crore.
Further, applicants can also enjoy Flexi Loan facility and pay interest only on the amount utilised. EMIs get reduced by 45% as borrowers repay only the interest amount as EMI and the principal loan amount is paid back only during the loan closure.