Marriage is a special occasion that requires a lot of planning and expenditure. However, not everyone can afford to pay for their dream wedding out of their savings or income. That’s why many people look for alternative sources of funding, such as loans from banks, NBFCs, or even the government.
Yes, you read that right. The government of India offers various schemes and programs that provide financial assistance for the marriage of poor girls, orphans, widows, and people from certain communities. These schemes are aimed at promoting social welfare and empowerment of women and minorities.
In this article, we will tell you everything you need to know about how to get a marriage loan from the government in India, including the eligibility criteria, documents required, interest rates, and application process. We will also answer some frequently asked questions about marriage loans from the government.
What is a Marriage Loan from the Government?
A marriage loan from the government is a type of personal loan that is given to eligible individuals or families for the purpose of meeting the expenses related to marriage. Unlike regular personal loans from banks or NBFCs, these loans are usually subsidized or interest-free, and do not require any collateral or guarantor.
The government of India has launched several schemes and programs under different ministries and departments that offer marriage loans to various sections of society. Some of these schemes are:
- Pradhan Mantri Mudra Yojana (PMMY): This is a flagship scheme of the Ministry of Finance that provides loans up to Rs. 10 lakh to micro and small enterprises engaged in income-generating activities. The loans are given through Mudra Bank, which is a subsidiary of SIDBI. The loans are categorized into three types: Shishu (up to Rs. 50,000), Kishor (Rs. 50,000 to Rs. 5 lakh), and Tarun (Rs. 5 lakh to Rs. 10 lakh). The interest rates vary from 11% to 18%, depending on the lender and the loan category.
- Schemes for Women by Department of Women and Child Development: This department under the Ministry of Women and Child Development offers various schemes for women empowerment and welfare, especially for those belonging to poor, backward, or marginalized sections of society. Some of these schemes are:
- Beti Bachao Beti Padhao (BBBP): This is a flagship scheme that aims to address the declining child sex ratio and empower the girl child through education, health, and protection. The scheme provides incentives for the birth and education of girl children, such as cash awards, scholarships, insurance cover, etc.
- Sukanya Samriddhi Yojana (SSY): This is a savings scheme that encourages parents to save money for their daughter’s education and marriage. The scheme offers a high interest rate of 7.6% per annum (as of January-March 2021) and tax benefits under Section 80C of the Income Tax Act. The minimum deposit amount is Rs. 250 per year and the maximum is Rs. 1.5 lakh per year. The account can be opened for a girl child up to the age of 10 years and matures after 21 years or on her marriage, whichever is earlier.
- Mahila E-Haat: This is an online marketing platform that enables women entrepreneurs and self-help groups to showcase and sell their products and services directly to buyers. The platform also provides information on various schemes, programs, training opportunities, etc., for women empowerment.
- Marriage Assistance Schemes by State Governments: Apart from the central government, many state governments also offer marriage assistance schemes that provide financial assistance for the marriage of poor girls, orphans, widows, or people from certain communities. The amount, eligibility criteria, documents required, and application process vary from state to state. Some examples of such schemes are:
- Kalyana Lakshmi Pathakam / Shaadi Mubarak Scheme by Telangana Government: This scheme provides a one-time financial assistance of Rs. 1.25 lakh to brides belonging to SC/ST/BC/EBC/Minority communities whose family income is less than Rs. 2 lakh per annum.
- Mukhyamantri Kanya Vivah Yojana by Madhya Pradesh Government: This scheme provides a financial assistance of Rs. 51,000 to brides belonging to BPL families or having an annual income less than Rs. 1 lakh.
- Dr. Ambedkar Medhavi Chhattar Sanshodhit Yojna by Haryana Government: This scheme provides a financial assistance of Rs. 1.1 lakh to SC/BC girls who have passed class 10th or 12th with at least 60% marks and are getting married.
How to Apply for a Marriage Loan from the Government?
The application process for a marriage loan from the government depends on the scheme or program that you are eligible for and want to avail. However, some common steps that you need to follow are:
- Check the eligibility criteria: Before applying for any scheme, you need to check whether you meet the eligibility criteria for that scheme, such as age, income, caste, marital status, etc. You can find the eligibility criteria on the official website of the scheme or the department that is offering it.
- Gather the required documents: You also need to gather the required documents that prove your identity, address, income, caste, marital status, etc. Some of the common documents that you may need are:
- Aadhaar card
- PAN card
- Voter ID card
- Driving license
- Ration card
- Bank account details
- Income certificate
- Caste certificate
- Marriage certificate or invitation card
- Photographs of bride and groom
- Fill the application form: You need to fill the application form for the scheme that you want to apply for. You can either download the form from the official website of the scheme or the department, or get it from the nearest office or branch of the scheme or the department. You need to fill the form with accurate and complete details and attach the required documents.
- Submit the application form: You need to submit the application form along with the documents to the concerned authority or office of the scheme or the department. You may also have to pay a nominal fee or charge for processing your application.
- Wait for approval and disbursal: After submitting your application, you need to wait for approval and disbursal of your loan amount. The approval and disbursal time may vary from scheme to scheme and depend on various factors such as verification of documents, availability of funds, etc. Generally, it may take anywhere from a few days to a few weeks for your loan amount to be credited to your bank account.
FAQs on Marriage Loan from Government
Q1. What is the difference between a marriage loan from a bank and a marriage loan from the government?
A marriage loan from a bank is a type of personal loan that is given by a bank or an NBFC to an individual or a family for meeting the expenses related to marriage. A marriage loan from a bank usually requires collateral or guarantor, has a higher interest rate, and has a shorter repayment tenure.
A marriage loan from the government is a type of personal loan that is given by the government of India or a state government to an eligible individual or a family for meeting the expenses related to marriage. A marriage loan from the government usually does not require collateral or guarantor, has a lower or zero interest rate, and has a longer repayment tenure.
Q2. Can I get more than one marriage loan from different schemes or programs?
It depends on the terms and conditions of each scheme or program that you want to apply for. Some schemes or programs may allow you to avail more than one marriage loan from different sources, while some may not. You need to check the eligibility criteria and guidelines of each scheme or program before applying.
Q3. Can I prepay or foreclose my marriage loan from the government?
Yes, you can prepay or foreclose your marriage loan from the government without any penalty or charge, unless otherwise specified by the scheme or program that you have availed.