The term marriage loan tends to refer to a unsecured personal loan which allows you to borrow a sum of money over a specified period at a fixed interest rate.
When you apply for a loan, you will likely be asked what you want to use the money for, with “marriage” as an option. This is because some lenders take the purpose of the loan into account when deciding whether or not to offer it to you.
However, the mechanics of the loan itself – how it works and how you have to repay it – are the same no matter what you use it for.
With a marriage loan, you can usually borrow between £ 1,000 and £ 15,000, although it can go up to £ 25,000 with some lenders. However, of course, you will need to assess whether sums like these are worth spending on what is essentially a one-time event.
You can choose to pay off the loan over one to five years, although some lenders offer seven-year terms. Remember, the longer the term, the more interest you will pay in total.
Note that this type of loan is described as “unsecured” because it is not secured by an asset such as your home. With a secured loan, your lender has the right to repossess your property if you are unable to meet repayments.