How to Finance your Dream Wedding with Loan Against Property
A couple’s wedding is one of the most important days for them and skimping on this auspicious occasion is never an option. However, due to the sheer expense of a marriage, most people prefer to have a simple ceremony rather than a fancy one.
Apart from this, Indian weddings are usually extensive or very elaborate and that too with loads of guests. It is yet another reason for the expenses to rise sky high.
But in case, you are looking for a way to save the most important day of your life, then borrowing a loan against property for wedding is the right way to go.
It will not only give you a chance to enjoy your dream wedding but also enough time to repay your loan. In this article, I will tell you about how taking a Loan Against Property for Wedding can be beneficial for couples.
High Loan Amount
A wedding can cost you a fortune especially if you are planning on a destination event. That is why it is always a good idea to carry money. The best part about a loan against property for wedding is that it gives you almost fifty per cent of the actual asset amount.
If you are putting your home up for a mortgage which is worth Rs.30 lakh to avail a loan against property for wedding, then you will be able to get around Rs.15 lakhs. So the higher the value of your property the more loan you get.
Better Interest Rates
When one opts for an unsecured loan, the chances are that they have to pay higher interest rates to cover the risk involved. But in the case of a loan against property for wedding, you can strike a tremendous deal by getting manageable interest rates.
It happens because Interest Rates on Loan Against Property in India gives an additional layer of security to the financing firms. Since they already have something as collateral, it becomes more comfortable for them to provide you with lower rates in case of a loan against property for wedding.
Top-Up Loans Available
Another benefit which couples can enjoy when it comes to taking a loan against property for weddings is the facility of the top-up loan. In case you have already put your property on mortgage for another loan, you can directly ask the financing organisation to extend the amount.
Although, this is only possible when the firm deems you fit enough to repay the entire amount without any problems. The simplest way to find out if you can avail the top-up service is by submitting all the loan against property documents required.
Applying for a loan against property in India is very simple. However, if you do not have all the right loan against property documents required, it can become time-consuming. That is why a person should always be prepared before applying for funds.
In the case of most financing agencies, there is two separate loan against property eligibility criteria. One has been designed for salaried employees whereas the other is for self-employed individuals.
Easy to Avail
Last but surely not the least, the processing time of the entire transaction also makes for an advantage when it comes to borrowing a loan against property for wedding. The short duration allows you to focus more on planning your wedding rather than going back and forth between banks.
Once you have borrowed a loan against property, there is nothing more important than paying your EMIs. People who miss out on their repayment are more prone to getting a bad credit rating. It can also keep you from getting additional loans in the future.
Loans Over Savings
We all have the habit of dipping into our savings rather than borrowing a loan against property among other loans. However, if you are getting great offers during the wedding season then make it a point to take credit. It will make sure that you do not compromise on your retirement for today.
Below you will be able to find a detailed list of loan against property documents required
Common Documents for the Loan Against Property
Documents which state your real identity need to be submitted along with your loan against property application form. For this purpose, you can use either a Pan Card, Aadhar Card, Passport, Driving Licence, Voter ID Card, Employee ID, or a Ration Card.
A valid address proof needs to be established to the financing firm while applying for credit. The loan against property documents required for this purpose can either be a utility bill, bank account statement, or a copy of your LIC policy.
The property against which you are planning to take a loan needs to be justified as well. It means you will have to submit the original documents of the property. It helps the financing firm in understanding that you are the original owner.
LAP Documents for Salaried Individuals
Proof of Income
The only way a salaried employee can get a loan is by disclosing his monthly income. To do so, you can submit your payslips, appointment or promotion letter, income tax returns, or a certified letter from your employer.
Job Stability Proof
While checking all the loan against property documents required, a financing firm also has to understand how stable are you with your current job. This can be done by handing over an experience or employment letter.
Whenever you decide to take a loan against property, it is essential for the borrower to highlight his previous debt condition. Also, keeping your financial situation hidden, can result in your loan application being rejected.
Apart from the mentioned loan against property documents required, you can also submit additional paperwork to make your application stronger. These can include investment details of fixed deposits, shares, and bonds. You will also have to give a service processing cheque along with the form.
LAP Documents for Self-Employed Individuals
If a self-employed individual decides to take a loan against property, the first thing that they need to do is establish their business proof. For this purpose, you can use the lease or rent contract of the property. Besides, you can even consider submitting maintenance and utility bills.
You also need to collect income proof, while dealing with a loan against property documents required. The material that can come in handy for this purpose is an income tax return statement of at least three years. An audited profit and loss account balance sheet can also be a good alternative.
Even if you are a self-employed individual, you still need to update the financing agency about various other things. It includes your debt history, additional investments, as well as property ownership. Furthermore, you will also have to pay the processing fee.
Most financing organisations try to make the process convenient by adding loan against property eligibility list on their website itself. This way you will be able to check all the information within minutes before applying for a loan against property for wedding.
Are you having to compromise on your dream wedding due to lack of money? Then a Loan Against Property is the answer.
Alisha Antil is your best financial helper for loans. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health. She has in-depth knowledge and has written more than 1200 blogs on topics related to finance and loan against property. She also provides you with knowledge about home improvement and cooking.