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A personal loan taken for marriage is helpful to meet the budgetary expenses as per the size of the ceremony. A quantum on such loans depends on the borrower’s gross monthly income, and the RoI is fixed as per cibil scores, as well as job profile at government, public, and private sectors—and for those who have maintained a clean loan discipline of paying EMIs on previous loans.
Forbes Advisor India examined personal loan schemes across various categories offered by major public and private sector banks, and created the seven best suitable loans for wedding, its features, benefits, and eligibility factors.
The interest rate and account details are accurate as of Feb. 22, 2023.
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Best Personal Loan for Wedding in 2023
Bank of Maharashtra: Best in overall marriage loan for employees of government, public and private sectors.
Bank of India: Best for salaried couples to avail of a personal loan for marriage at low rate of interest.
ICICI Bank: Best for availing personal loan online after running eligibility check on the bank’s website.
State Bank of India: Best in on personal loan for wedding applied by salary account holders.
Bank of Baroda: A pre-approved personal loan up to INR 5 lakh suited best for small weddings.
Federal Bank: Best in fixed rate of interest on personal loan.
Axis Bank: Best for those who wish to transfer existing personal loans with other banks to Axis Bank.
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Bank of Maharashtra – Personal Loan Scheme for Salaried
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
RoI
10% to 12.55%
Processing Fee
1%
Loan Amount
Up to INR 20 lakh
RoI
10% to 12.55%
Processing Fee
1%
Loan Amount
Up to INR 20 lakh
Why We Picked It
Bank of Maharashtra runs a personal loan scheme starting 10%, which is perhaps the lowest RoI than any other lending institutions, for salaried employees having a salary account with the bank as well as other banks. The RoI is calculated as per the borrower’s CIBIL score, however, it is comparatively low for government employees than private, as follows:
| CIBIL Score | Type of Employment | Account Type | Interest Rate Range |
|---|---|---|---|
| 700 to 800 | Government/PSUs, education institutions | Salary account with BoM | 10% to 11% |
| 700 to 800 | Government/PSUs, education institutions | Salary account with other banks | 10.80% to 12.05% |
| 700 to 800 | ‘A’ rated private and public limited companies | Salary account with BoM | 10.80% to 12.05% |
| 700 to 800 | ‘A’ rated private and public limited companies | Salary account with other banks | 11.20% to 12.55% |
The quantum of loan amount can be 20 times of the borrower’s gross monthly income (salary amount received before taxes and other deductions) maximum up to INR 20 lakh. However, a clean loan history of previous EMIs is mandatory. Besides, 1% of the loan amount is charged as processing fee, and 0.20% as documentation fee.
Extra Details
Eligibility: Minimum annual income of INR 3 lakh, along with ITR filing of 1 year.
Tenure: Up to 60 and 84 months for government and private company employees, respectively.
Prepayment: NA
Pros & Cons
- Low interest rate.
- Best suited for employees at government, public and private sectors.
- Charges documentation fees.
- Need to consult with the bank for preclosure details.
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Bank of India- Star Suvidha Express Personal Loan
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
RoI
10.35% onwards
Processing Fee
1%
Loan Amount
24 to 36 times of monthly salary
RoI
10.35% onwards
Processing Fee
1%
Loan Amount
24 to 36 times of monthly salary
Why We Picked It
Bank of India’s Star Suvidha Express Personal Loan is offering a low rate of interest starting 10.35% for salaried and pensioners, and 11.35% for self-employed. The quantum of loan is fixed as per the borrower’s gross monthly income (income before taxes and other deductions) maximum up to 24 times. The loan amount can be up to 36 times of the borrower’s gross monthly income who has an existing home loan with the bank.
Also, the age limit to obtain BoI’s Star Suvidha Personal Loan scheme is set at a higher bar than its peers at 75 years for repayment. Notably, more than one personal loan can be obtained under this scheme, however, subject to the borrower’s EMI/net monthly income (NMI) ratio, which is the loan eligibility amount after deduction of income tax on the monthly salary, existing loan amount, and the remaining NMI.
For a borrower who has more funding requirement for the wedding than their net salary income can opt for other personal loan schemes offered by Bank of India, which come with a security facility; however, the RoI is higher at 13.85%. Without security, the RoI can be 14.85%, and 12.85% for senior citizens irrespective of the loan amount.
Extra Details
Eligibility: Maximum age 75 years at the time of final repayment.
Tenure: Up to 84 months.
Prepayment: Nil.
Pros & Cons
- Low interest rate.
- Loan quantum up to 36 times for existing home loan borrowers.
- Individuals can obtain more than one star suvidha personal loan.
- A salary account with the bank is mandatory.
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ICICI Bank Personal Loan
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
RoI
10.75% to 19%
Processing Fee
2.50%
Loan Amount
Up to INR 50 lakh
RoI
10.75% to 19%
Processing Fee
2.50%
Loan Amount
Up to INR 50 lakh
Why We Picked It
ICICI Bank offers an unsecured personal loan up to INR 50 lakh to borrowers, the quantum which is higher than most of its peers. The bank runs a thorough credit check over and above the basic eligibility criterias before sanctioning the loan. For borrowers with net monthly income above INR 30,000 with good CIBIL score can avail of a loan at an RoI starting 10.75%, however, it can be hefty paying RoI up to 19% for low credit score borrowers.
Existing customers of the bank can avail of mini personal loans online instantly. For loans of higher value, one may require to visit the bank branch with original documents. Nevertheless, ICICI’s online eligibility tool will be helpful to let borrowers know if the bank can sanction them loans or not. Eligible borrowers are then contacted by the agent on their mobile number registered with the bank to take the application further.
Extra Details
Eligibility: A minimum net monthly income of the salaried should be above INR 30,000.
Tenure: 12 to 72 months
Prepayment: Nil on loans closed after one year, or 3% if closed before 12 EMIs.
Pros & Cons
- Prepayment allowed after paying one EMI at 3% charges on the outstanding loan amount.
- Facility to check loan eligibility online.
- High net monthly income criteria.
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State Bank of India – Xpress Elite Personal Loan
4.4
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
RoI
11% to 11.50%
Processing Fee
Up to 1.50%
Loan Amount
Up to INR 35 lakh
RoI
11% to 11.50%
Processing Fee
Up to 1.50%
Loan Amount
Up to INR 35 lakh
Why We Picked It
SBI’s Xpress elite is a personal loan scheme offered to its existing customers who have a salary account with the bank, with net monthly income above INR 1 lakh. The scheme charges interest in the range of 11% to 11.50%, and does not require pledging a security. A prepayment, however, is set higher at 3% after paying a minimum of six EMIs.
Extra Details
Eligibility: Offered to salary account holders of the bank with net income above INR 1 lakh per month.
Tenure: 6 to 72 months
Prepayment: 3% of the prepaid amount.
Pros & Cons
- Low rate of interest for salary account holders with SBI.
- Nil security requirement.
- High processing fee.
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Bank of Baroda – Pre Approved Personal Loan
4.4
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
RoI
11.35% onwards
Processing Fee
2%
Loan Amount
Up to INR 5 lakh
RoI
11.35% onwards
Processing Fee
2%
Loan Amount
Up to INR 5 lakh
Why We Picked It
Bank of Baroda’s pre-approved personal loan is best suited for salaried and self-employed individuals looking to get funding approval beforehand and plan their budgetary expenses for wedding, accordingly. Such a loan will already have an “in-principle” personal loan approval from the bank. The plan offers mini personal loans up to INR 5 lakh with the rate of interest between 11.35% to 15.85%.
Extra Details
Eligibility: Salaried and self-employed. Not for non-resident Indians (NRIs) and self help groups (SHGs).
Tenure: 18 to 36 months.
Prepayment: Nil.
Pros & Cons
- Comparatively low RoI for pre approved loans.
- Best for a short term loan up to 36 months.
- RoI on loans up to INR 50,000 under this scheme is higher at 16%.
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Federal Bank – FedPremia Personal Loan
4.3
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
RoI
11.49% to 14.49% (Fixed)
Processing Fee
Up to 3%
Loan Amount
Up to INR 25 lakh
RoI
11.49% to 14.49% (Fixed)
Processing Fee
Up to 3%
Loan Amount
Up to INR 25 lakh
Why We Picked It
Federal Bank’s Fedpremia personal loan comes with a fixed rate of interest in the range of 11.49% to 14.49% for a tenure up to 48 months. The quantum of loan amount can be up to INR 25 lakh, which is fixed as per the borrower’s net monthly income (income after tax and other deductions) earning not less than INR 25,000. In addition, the processing fee under this scheme is higher than its peers at 3% of the loan amount deductible at the time of sanction.
Extra Details
Eligibility: The net monthly income of borrowers should be above INR 25,000.
Tenure: Up to 48 months.
Prepayment: Available.
Pros & Cons
- Low fixed rate of interest.
- Availability of pre-payment of the loan.
- High processing fee.
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Axis Bank – Personal Loan for Wedding
4.2
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
RoI
12% to 21% (Fixed)
Processing Fee
2%
Loan Amount
Up to INR 15 lakh
RoI
12% to 21% (Fixed)
Processing Fee
2%
Loan Amount
Up to INR 15 lakh
Why We Picked It
Axis Bank offers personal loans for weddings, from INR 50,000 to INR 15 lakh, at an RoI starting 12% to 21%, which is fixed throughout the repayment tenure up to 60 months. Borrowers can run a quick eligibility check on the bank’s website before applying for a loan application. Borrowers can also transfer their existing personal loan with other banks to Axis, and the RoI is fixed as per borrower’s credit history over and above basic eligibility criteria.
Extra Details
Eligibility: Net monthly income should be above INR 15,000.
Tenure: Up to 60 months.
Prepayment: 2% to 5% for loans closed within 12 to 60 months.
Pros & Cons
- Availability of transferring existing personal loans with other banks to Axis.
- Minimum net monthly earning criteria.
- High pre penalty charges up to 5%.
- Charges are applied as per services requested, or penalty facing default on repayment.
Forbes Advisor Ratings
| Policy Name | Company – Logo | Forbes Advisor India Rating | Forbes Advisor Rating | RoI | Processing Fee | Loan amounts | Learn More CTA text | Learn more CTA below text | View more |
|---|---|---|---|---|---|---|---|---|---|
| Bank of Maharashtra |  | 4.5 |  | 10% to 12.55% | 1% | Up to INR 20 lakh | View More | ||
| Bank of India |  | 4.5 | | 10.35% onwards | 1% | 24 to 36 times of monthly salary | View more | ||
| ICICI Bank |  | 4.5 | | 10.75% to 19% | 2.50% | Up to INR 50 lakh | View more | ||
| State Bank of India |  | 4.4 | | 11% to 11.50% | Up to 1.50% | Up to INR 35 lakh | View more | ||
| Federal Bank |  | 4.3 | | 11.49% to 14.49% (Fixed) | Up to 3% | Up to INR 25 lakh | View More | ||
| Bank of Baroda |  | 4.4 | | 11.35% onwards | 2% | Up to INR 5 lakh | View more | ||
| Axis Bank |  | 4.2 |  | 12% to 21% (Fixed) | 2% | Up to INR 15 lakh. | View more |
Methodology
We analyzed 33 public and private scheduled commercial banks across parameters such as assignees, interest rates, processing fees, tenure, insurance coverage, repayment over and above application process and ease of access to information. We chose the five best personal loans for marriage based on those earning four stars or higher.
The following is the weighting assigned to each category:
– Interest rates: 30%
– Loan amounts: 20%
– Processing fee/other charges: 20%
– Loan allocation: 10%
– Prepayment: 10%
– Ease of access to information: 10%
Related: Best Personal Loans In 2023.
How do Banks Calculate Interest Rate on Personal Loans for Marriage?
Lending institutions provide personal loans and charge a rate of interest, which can either be fixed or floating. The RoI depends on several factors including the loan amount, cibil score, income, job stability, among others. The rate of interest is applied to your loan which will include any fees, or cost of borrowing the personal loan. Personal loans are usually unsecured and charge a higher interest rate compared to secured loans.
For example, If you’re applying for a marriage loan of INR 10 lakh and the bank is charging an interest of 10.5% for a tenure up to 10 years, then the formula used to calculate the interest is as follows:
E = P X R X (1+R)N/(1+R)N–1)
Where, E = EMI; P = Principal amount; R = Rate of interest; N = Tenure in months.
EMI = INR 10,00,000 X 0.00875 X (1 + 0.00875)120 / (1 + 0.00875)120 – 1) = INR 13,493.
Banks often show the break up between the interest rates and principal components using a loan amortization schedule to help borrowers examine their EMI payments on their personal loans for weddings.
Related: What is EMI and How is it Calculated.
How to Choose the Best Personal Loan for Your Wedding?
Employment History and Employer Credibility
Many lenders will check for your employment history, your job stability, as well as residential stability before sanctioning a personal loan for marriage. For instance, most banks provide lower RoI to borrowers who are government employees as compared to someone who is employed at public or private companies. Nevertheless, it is not a deterrent factor.
Even if you are working in a public or private sector company, the lender could look up your employer. For instance, multinationals, reputed companies who have a history of providing stable career options can be a factor in how much loan you can get, and the interest rates that can be applied when the EMI begins.
Comparing Interest Rates and Offers
There are a lot of lending platforms that are available today to help you make an informed decision. Once you know your eligibility and requirement, you may choose to visit one of the financial websites which compare various lenders who are offering personal loans.
Do not underestimate a good relationship. If you already have a long-standing relationship with your bank, go ahead and take their advice. They may be able to customize a plan for you that is suited as per your budgetary plan for the wedding.
Good Credit Score and Repayment History
Quite a crucial factor. A good credit score would mean a score of 750 and above. This would give you a higher chance of getting a better interest rate. You should be able to maintain a good credit score if you have avoided direct loans and credit card applications.
Making timely payments bode well for your credit rating which in turn affects the interest rate on marriage loans. Timely repayment of EMIs, or maintaining a clean loan record are factors that are noted by the lending organization before the loan is sanctioned.
Check Interest Calculation Method
Try and understand the finer nuances of how your interest is calculated like mentioned above. Different lenders may give you different interest rates, and while some may look less at the outset, you may end up paying a higher interest at the end of the tenure because of how they are calculated.
Related: Personal Loan Interest Rates In 2023.
Check if your loan is a fixed or variable interest loan
Fixed rate on loans will be fixed and does not change over time or through repayment period. As far as floating rate of interest on loans are concerned, they usually start low as compared to fixed rate loans. But over a time, the interest rate may vary on floating RoI on loans and that may totally throw your budget awry.
Secured or unsecured personal Loan
In case of a secured personal loan, a security is pledged to obtain a loan which may fetch you better RoI and higher chance of availing a marriage loan. If you were to opt for unsecured personal loans, then your credit score must be good, usually above 700 to qualify for personal loans for marriage.
EMI/NMI Ratio
EMI/NMI ratio helps lenders to determine borrowers’ loan eligibility amount after deduction of income tax on the monthly salary, existing loans, and the remaining net monthly income (NMI). Most lenders have put a cap on the maximum limit on the EMI/NMI ratio.
For instance, If the applicant’s net monthly income is INR 50,000 post deduction of income tax and existing EMIs of the loan, and the bank is offering 25% EMI/NMI ratio on that income slab, the maximum EMI amount he/she can opt for is 25% of INR 50,000.
But, if an applicant already has INR 5,000 existing EMI for any other loan, then the maximum EMI amount he can opt further is INR 12,500 – INR 5,000 = INR 7,750.
Charges
Borrowers should be mindful of charges applicable on personal loans for marriage as it can be hefty when EMI is missed or the payment is bounced. Banks also charge pre-penalty fee, swap charges, loan cancellation charges, duplicate statement issuance, amortization schedule charges, etc.
Documents Required for Marriage Loan
Personal loans for marriage are provided to individuals to help them meet the budgetary expenses of the ceremony. Here are the list of documents that are usually asked by lenders to process your application, as follows:
- Signed and filled up application form.
- Proof of identity: PAN card, passport, driver license, voter ID
- Proof of address: PAN card, passport, driver license, latest electricity or telephone bill
- Proof of income for salaried: Last six months salary slip, one year ITR, or Form16.
- Proof of income for self-employed: Last three years ITR certified by CA, profit and loss balance sheet.
- Mobile number
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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