Approximately 10 million weddings take place in India every year. It is considered as one of the largest venue-based industries in the country, incurring hefty outgoings on an annual basis.
A significant number of individuals often avail wedding loan against property to finance the increasing cost of hosting such occasions. These types of credits offer a substantial amount, allowing borrower to utilise the money as per their requirement.
Nonetheless, several parameters must be pre-decided to ensure maximum benefits from such advances. There are also several important things that a borrower should consider before availing such a credit.
Marriage loan against property – Things to consider
Loan against property is associated with no end-user restrictions, allowing individuals to spend the acquired credit in any way they require. This is a significant advantage while planning a wedding.
Loan against property is disbursed up to a stipulated percentage of the total value of the mortgaged collateral. Hence, total credits sanctioned are substantial, allowing borrowers to finance a majority of the aggregate wedding expenditure respectively. The loan–to –value ratio of advances should be considered consequently, as it affects the cumulative funds disbursed.
Income & FOIR
The monthly income of an individual minus all fixed obligations determines his/her repayment capability. In this respect, income proof, as well as approximate FOIR, has to be high for quick loan approval and disbursal. Individuals can submit income proof documents and bank statements for verification.
Major NBFCs extend wedding loans against property with customized loan tenors. Individuals must take into account their financial status and repayment capability to determine loan tenor and subsequent EMIs.
These are some of the things borrowers should know before availing a loan for their weddings. It allows individuals to plan an eloquent wedding without any financial pressure.