Weddings in India are an elaborate series of celebrations with each day having its own set of traditions. The expense of hosting guests, catering, decorations and designer clothes often surges during a wedding and most families find it difficult to pay for these elaborate events. But a mortgage loan can serve as a great option for financing the whole wedding itself. Let’s take a look at how this works.
Loan Against Property (LAP)
In such cases, you may seek financial aid from an institution. Marriage loans are basically personal loans which can be utilized meeting wedding expenses. Personal Loans are the best option if you need just a few lakhs to finance your wedding. However, the interest rates on a Personal Loan are up to 18 to 24 per cent, and the tenure varies from one to three years. This makes it difficult to repay the financial institution if the loan value is high.
Mortgage loans in India are becoming an attractive option to fund one’s dream wedding. It will suit your needs perfectly if you are looking for a high-value loan with a lower interest rate than a Personal Loan. Let’s look at the features of mortgage loans in detail:
Loan Amount
Mortgage loans are in the form of high-value loans. The mortgage loan interest rates are also comparatively low. The loan amount depends on the property’s market value. PNB Housing Financeoffers to fund up to 60% of the property cost. The loan tenure is also significantly longer, up to 20 years, which makes the EMI amount more manageable.
Eligibility
Since mortgage loan amounts are paid against collateral, the eligibility process is simpler and much more lenient. PNB Housing Finance provides loans for both salaried individuals as well as self-employed individuals. Salaried individuals can choose a tenure ranging from 2 to 20 years and repay conveniently, whereas Self-employed individuals can select a tenure of up to 18 years. While the loan amount and the tenure may differ slightly based on your occupation, the paperwork and verification process involved is minimal. The process involves due checks and verification to ascertain the ownership, the value and the residual life of the property. The repayment capacity of the borrower is also checked before approving the loan. PNB’s personalized doorstep service makes this process so much smoother.
Interest Rates
As mentioned above, mortgage loans tend to have a lower rate of interest. Since they are secured loans, the lender is at a lower risk of losing their money as it can be recovered by selling off the property pledged as collateral. This ensures that the mortgage loan interest is low and makes the process of getting a LAP easier as long as you have your required loan documents.
A mortgage loan can help you finance your dream wedding. This flexibility comes with a long tenure and low EMIs so that you do not face any financial burdens while paying back your loan. A mortgage loan is an easy solution when it comes to managing all your wedding expenses.
