Wedding Loan: Benefits, Eligibility, Hidden Fees, List of Banks

Everyone must have heard the phrase: Marriages are made in heaven. And it’s true, since it brings two people each other and creates a relation that lasts forever. Everyone dreams of having an extravagant wedding, not a big fat, but whose memories will be unforgettable.

But not everyone has financial capacity to spend heavily on marriage. In fact, even a normal marriage costs close to Rs. 10, 00,000 in metros and close to half in smaller cities. And that’s when loan for marriage i.e. personal loan comes to help. But remember that this type of loan has hefty cost involved. Individual’s can take personal loan from various banks to fulfill various marriage related expenses such as payment of venue hall, decoration service, purchase of clothing, jewelry, etc and many others. Later on they can repay this money to the lender along with the interest.

Benefits are:

  • Quick approvals
  • Fast remittances to your bank account
  • Higher loan amount
  • Various pre-payment options
  • Facility to pay loan installments in part


  • Depending on the age and gender, loans are sanctioned. Typically, grooms with minimum age of 21 years and bride with an age of 18 years are offered loans.
  • Apart from the age, lenders also check CIBIL score, annual income, age, security or collateral offered, and years in job for a salaried individual.
  • Depending on these, repayment capacity is calculated and loan amount is decided. However, even if your annual income is less, there are personal loans for low income individuals available in the market.

How to Choose:

Your decision to take wedding loan should be based on following factors:

  • Interest Rate: This is the most important factor to be taken into consideration while taking any type of loan. Whether low or high, interest money you pay always kills your wallet. And a higher interest rate further hits you financial hard. Check out cheapest personal loan in India. There are loans available for individuals with bad credit as well.
  • Tenure: Your tenure also plays a key role. Higher the tenure, lower would be your monthly payments and vice-versa. So check out loan tenure and overall amount you will end up paying by the time tenure ends. Calculate this for various tenure.
  • Loan Amount: Minimum loan amount should be applied. This is because post marriage, expenses rises and additional EMIs will further burden the couple. So try to apply for minimum amount and use your own money for expenses.

Other hidden charges:

Apart from the interest rate, banks also charge various fees which are often overlooked by the borrower. These include:

  • Processing Fee: This typically is in the range of 2%-3%.
  • Pre-payment penalty
  • EMI bounce charges
  • Late payment penalty

Documents Required:

Mandatory documents for wedding loan are as follows:

  • Salary and bank statement for last 3 months
  • ID and address proof
  • Employment letter from previous as well as current employer

Who offers:

There are few lenders who offer loans especially for wedding:

  • Tata Capital
  • Bajaj Finserv
  • Corporation Bank

Then there are banks which offer personal loan that can be used for wedding and any other purpose:

  • Axis Bank
  • ICICI Bank
  • SBI and many others

Before applying for the loan, list down everything you would spend on and calculate your repayment capacity. Try not to go beyond the limit. Initially you might think of having a lavish wedding but eventually you will be burdened.

How to arrange money for the wedding?

One way to raise money for wedding is smart investment by starting early. If someone starts earning from the age of 23 years and plans to get married after 6 years then start investing into equity or debt funds. Tax saving funds is also good option. The returns from these investment products will help you to a good extent.

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