Planning your wedding comes with many decisions, and figuring out how to pay for it is one of the most important. Many couples turn to a marriage loan to manage their wedding expenses, as it seems like a convenient option.
However, there’s another financing choice worth considering—a Loan Against Property. Both options have their pros and cons, and it’s essential to understand how they work, what factors to consider, and which one might provide the best value for your needs. By comparing these two, you can make an informed decision and focus on planning your special day without worrying about finances
Choosing Between a Marriage Loan and a Loan Against Property
When it comes to funding your dream wedding, choosing the right type of loan is crucial. Here we’ll dive into the differences between Marriage Loans and Loans Against Property, helping you find the best fit for your financial needs.
| Aspect | Marriage Loan | Loan Against Property |
|---|---|---|
| Definition | A marriage loan is a personal loan taken specifically to cover wedding expenses. | A loan against property involves borrowing money by mortgaging your property as collateral. |
| Interest Rates | Interest rates typically range from 10.5% to 24% per annum, as these are unsecured loans | Interest rates are generally lower, starting from around 8.95% to 11% per annum, since the loan is secured by property |
| Loan Amount | Loan amounts typically range from ₹10,000 to ₹40 lakh, depending on the lender and the borrower’s eligibility | Loan amounts can be substantial, often ranging from ₹10 lakh to ₹5 crore, based on the property’s value and the lender’s policies |
| Repayment Period | Up to 5 years | Up to 15-20 years |
| Processing Time | Usually, it is faster as it requires less documentation | Takes longer due to the evaluation of the property and additional documentation required |
| Credit Impact | Requires a credit score of 700 or higher. Failure to repay can significantly impact your credit score, reducing your chances of future borrowing | Requires a credit score of 650 or higher. Defaulting on payments can harm your credit score and may also lead to the loss of the mortgaged property |
| Ideal For | Individuals need quick funds without collateral | Those with property need a larger loan amount and are comfortable with a longer repayment term |
Also Read: Loan against Property (LAP) vs. Gold Loan
Top 5 Reasons to Opt for a Loan Against Property Over a Marriage Loan for Your Wedding
Planning a wedding involves big decisions, especially when it comes to financing it. Here’s why opting for a Loan Against Property might be a better choice than a Marriage Loan for financing your dream wedding.
1. Lower Interest Rates
Loan Against Property typically comes with lower interest rates as it is secured against real estate. This makes it more affordable than Marriage Loans, which usually carry higher rates due to being unsecured.
2. Higher Loan Amounts
The loan amount for a Loan Against Property depends on the value of your property, enabling you to borrow more. This makes it suitable for covering significant wedding expenses like venues, catering, and entertainment.
Read More: How to Apply for LAP without Income Proof?
3. Longer Repayment Terms
Loans Against Property offer longer repayment periods, often up to 15-20 years. This gives you the flexibility to repay the loan in smaller, manageable EMIs, reducing financial strain after the wedding.
4. Tax Benefits
Interest payments on Loans Against Property may qualify for tax deductions under certain conditions. Marriage Loans, however, typically do not provide such tax-saving opportunities.
5. Flexibility in the Usage of Funds
With a Loan Against Property, you can use the funds not just for wedding expenses but also for other needs. This could include a honeymoon, home improvements, or even paying off other debts, making it a more versatile option.
Considering these advantages, a Loan Against Property not only helps manage your wedding expenses efficiently but also provides broader financial support and flexibility, making it a preferable choice over a Marriage Loan.
Also Read: Loan Against Property Eligibility Criteria
Compare Loan Against Property Interest Rates – 2025
| Banks/ NBFCs | Rate of Interest | Maximum Loan Amount |
|---|---|---|
| SBI | 10.60% p.a. – 11.30% p.a. | Rs. 7.5 Crore |
| HDFC | 9.50% p.a. – 11.00% p.a. | 65% of the market value of the property |
| IDFC | 9.25% p.a. onwards | 50% – 70% of the market value of the property |
| Tata Capital | 14.25% p.a. onwards | Depending on the market value of the property |
| Axis Bank | 10.50% p.a. – 10.90% p.a. | Rs. 5 Crore |
| Kotak Mahindra Bank | 9.50% p.a. onwards | Rs. 5 Crore |
| Bank of India | 10.10% p.a. Per lakh | Rs. 5 Crore |
| LIC Housing Finance | 9.70% p.a. – 11.55% p.a. | Rs. 2 lakhs onwards |
| PNB Housing Finance | 9.24% p.a. – 12.75% p.a. | 70% of the market value of the property |
| ICICI Bank | 10.85% p.a. – 12.50% p.a. | 75% of the market value of the property |
How Credit Dharma Simplifies Your Wedding Financing?
When planning your dream wedding, figuring out your finances can be a big task. Credit Dharma is here to help you find the right fit between a marriage loan and a Loan Against Property. Here’s how we make it easier for you:
- Personalised Financial Guidance: We analyse your financial situation to recommend the best loan options that fit your unique needs.
- Streamlined Process: Our team simplifies the application process, helping you understand all the details and reducing paperwork.
- Quick Approvals: We work efficiently to ensure your loan is processed and approved quickly so you can secure your funding without delay.
- Ongoing Support: Even after your loan is secured, Credit Dharma remains your partner in finance, offering support and advice whenever you need it.
Take the first step towards a stress-free wedding. Visit Credit Dharma today and let us guide you through your wedding financing with ease. Start planning your special day with confidence!
Frequently Asked Questions
A marriage loan is unsecured and meant for wedding expenses, while a Loan Against Property is secured by property and offers larger amounts.
A Loan Against Property usually has lower interest rates because it is backed by collateral.
Yes, you can use a Loan Against Property for weddings and other purposes, depending on the lender’s terms.
Marriage loans are faster to approve as they require less paperwork compared to Loans Against Property.
A Loan Against Property is better for high expenses as it offers larger loan amounts.
HDFC Home Loan
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